Although inflation has shown signs of moderating, it remains high. Additionally, the US Fed could continue to raise interest rates to further reduce inflation. This indicates that stocks could remain volatile in 2023. Amid the volatility, low-beta stocks like AT&T (New York Stock Exchange:T) and Walmart (New York Stock Exchange:WMT) emerge as attractive investments to earn consistent dividend income and add stability to the portfolio.
Let’s dive into the details.
What are analysts saying about AT&T stock?
Analysts are cautiously optimistic about this diversified telecommunications company. Since its services are considered essential to the economy, its stock has a low beta of 0.34. AT&T stock remains relatively immune to wild market swings thanks to its low beta and defensive business.
For example, AT&T Stock it remained mostly stable in 2022 and closed the year in the green (5.77% more). The S&P 500 Index (SPX) decreased more than 19%.
It continues to grow its subscriber base, which boosts its higher earnings. Meanwhile, his focus on driving efficiencies has helped the company save billions of dollars in costs, supporting Profits and your payments.
Overall, continued momentum in its wireless and broadband segment benefits from 5G and fiber technologies, and cost-saving initiatives are likely to dampen its profits and boost going forward. dividend payments. Meanwhile, at current levels, AT&T stock offers an attractive dividend yield of 5.79% (forward yield).
Five analysts rate AT&T shares a Buy. Meanwhile, three analysts hold a bearish outlook and one has a bearish outlook. Based on these recommendations, AT&T Stock it has a Moderate Buy consensus rating on TipRanks. Additionally, the $20.50 average analyst price target is in line with its closing price on January 25.
Is Walmart a good company to invest in?
Walmart is a solid stock for investors seeking stability and decent dividend income. Its wide range of consumable products and affordable prices continue to drive traffic and its finance. Additionally, its low-risk business and value offerings add resilience to its actions and position it well to perform well even in a challenging operating environment. Walmart stock has a low beta of 0.61.
Walmart has increased its dividend for 49 consecutive years. In addition, given its ability to drive sales and Profitsthe retailer is likely to further enhance its shareholder returns through higher dividend payments in the coming years. WMT Actions offers a dividend yield of 1.57%close to current price levels.
walmart stock it holds a Strong Buy consensus rating on TipRanks, reflecting 21 Buy recommendations and five Hold recommendations. Meanwhile, the $162.32 average price target implies 14.04% upside potential.
Bottom line
Low beta, defensive business, and the ability to grow earnings make these companies a reliable investment amid volatility. These corporations are prepared to perform well in all market conditions and reduce downside risk to your portfolio.
