8 Low Beta Dividend Stocks to Dampen Portfolio Volatility

Thu, 06/16/2011 - 06:28 EDT - Seeking Alpha

Parsimony Investment Research submits:As the VIX increases over 20 for the first time since March 22 (see chart below), investors concerned with heightened levels of market volatility should considered dividend paying stocks with low betas to dampen volatility in their portfolio. A Company’s beta quantifies its volatility in relation to the overall market (S&P 500). A beta of one indicates the specific stock will experience market volatility in line with the S&P500. A beta of 0.5 will experience approximately 50% of the volatility of the market. Click to enlarge:

While long-term investors should be equipped to withstand market fluctuations, market volatility can be unnerving for many investors. Building a portfolio of high-quality, dividend paying, low beta equities may Complete Story »

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