Growth stocks offer the potential to outperform the market and generate solid long-term returns, but these stocks also come with plenty of risk. Some growth stocks fizzle out and crash within one year, never to reclaim their all-time highs.
Other growth stocks go through sharp drops that can startle many investors into selling their positions.
While the stock market can generate sizable returns, some investors prefer less movement within their portfolios. These investors often target reliable companies that offer respectable dividends.
These corporations aren’t likely to consistently outperform the Nasdaq Composite over many years, but they also aren’t going to drop significantly during economic downturns.
Investors can look at a company’s beta to gauge its volatility. The S&P 500 has a 1.00 beta, and any stock with a lower value tends to be less volatile than the stock market.
These are some of the low-volatility stocks to consider that provide respectable yields and can still deliver gains in 2024.
Walmart (WMT)
Walmart (NYSE:WMT) has a 0.50 beta and has done quite well over several years. The stock has gained 29% year-to-date and has rallied by 82% over the past five years. The iconic retailer trades at a 28 P/E ratio and offers a 1.22% yield.
The retailer grows during a strong economy, but it’s also more resilient during economic contractions. Walmart offers some of the most affordable products for people who are looking for groceries, toys, appliances and everything in between.
The company continues to grow and reported a 6.0% YOY improvement in revenue during the first quarter of fiscal 2025. Adjusted earnings per share jumped by 22.4% YOY.
Walmart posted solid growth numbers for its global e-commerce business and online advertising segment. E-commerce sales increased by 21% YOY and make up a respectable percentage of total revenue.
Advertising is still a small portion of Walmart’s business, but its higher profit margins make it worth watching. The global advertising business grew by 24% YOY.
Procter & Gamble (PG)
Procter & Gamble (NYSE:PG) currently has a 0.40 beta. It doesn’t outperform the stock market anymore, but it offers stability in good times and bad times.
The company has been selling essential home products for almost more than 185 years. Procter & Gamble has been giving out dividends for 134 consecutive years, and that includes 68 consecutive years of dividend hikes.
The stock has actually outperformed the market this year with a 13% year-to-date gain. However, the outperformance is an outlier, as Procter & Gamble is only up by 41% over the past five years.
While that’s a respectable gain for a low-volatility stock, it trails the S&P 500 during that timeframe. Procter & Gamble stock trades at a 27 P/E ratio and offers a 2.28% yield.
Earnings came in flat during the fourth quarter of fiscal 2024. Net sales stayed roughly the same while core EPS increased by 2% YOY. The company reported 2% YOY net sales growth throughout Fiscal 2024 and 12% YOY core EPS growth.
Consolidated Edison (ED)
Consolidated Edison (NYSE:ED) has a 0.34 beta and a 3.29% yield. The stock trades at a 20 P/E ratio and has logged a 9% year-to-date gain. The utility company is also up by 16% over the past five years.
While it underperforms during bullish economic cycles, ConEd doesn’t go down by much during bearish cycles. People will cut almost every other expense before they cut down on electric, gas and steam energy.
Net income dipped YOY in the second quarter while revenue increased by 9% YOY. The company profit margins tend to range from the high single digits to the low double digits.
ConEd benefits from a high annual recurring revenue model that offers more stability than most companies. It’s helped the company raise its dividend each year, including a 2.5% YOY hike this year.
That’s not the most impressive dividend growth rate, but it’s par for the course if you’re looking at low-volatility stocks of mature corporations.
On the date of publication, Marc Guberti did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.
