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AU, D, PEP, CINF and GPC combine low volatility with dividend yields above 2%.
These stocks aim to balance income stability and growth amid ongoing market uncertainty.
On Oct. 10, Wall Street witnessed the biggest single-day decline since Apr. 10, when President Donald Trump introduced his reciprocal tariffs. This time the reason for the U.S. stock market’s debacle is heightened trade conflicts with China.
U.S.-China Trade Conflicts Escalate
The trade conflicts between the United States and China escalated recently. On Oct. 9, China’s Ministry of Commerce issued a notification requiring all foreign companies to obtain a license to export products containing more than 0.1% of rare earth minerals that are either sourced from China or manufactured using Chinese extraction, refining, magnet-making or recycling technology.
The new rule will be effective from Dec. 1. Notably, China supplies around 70% of global rare earth minerals, critical components for today’s high-tech world. The United States is the major importer of rare earth minerals considered extremely valuable and utmost necessary inputs for the semiconductor, defense and automobile industries.
On Oct. 10, the U.S. government retaliated by imposing another 100% tariff on Chinese exports to the nation over and above what has already been imposed on these products. At present, Chinese goods are subject to an average 40% tariff in the United States. The new tariff of another 100% will be effective from Nov.1.
In his Truth Social post, President Trump wrote, “I was to meet President Xi in two weeks, at APEC, in South Korea, but now there seems to be no reason to do so. One of the policies that we are calculating at this moment is a massive increase of tariffs on Chinese products coming into the United States of America.”
At this juncture, investment in low-beta (beta >0<1) stocks with high dividend yields (>2%) and a favorable Zacks Rank will be the best option. If markets regain momentum, the favorable Zacks Rank of these stocks will capture the upside potential. However, if the downtrend continues, low-beta stocks will minimize portfolio losses and dividend payments will act as a regular income stream.
The chart below shows the price performance of our five picks year to date.
Image Source: Zacks Investment Research
AngloGold Ashanti plc
AngloGold Ashanti operates as a gold mining company in Africa, Australia, and the Americas. AU primarily explores for gold, as well as produces silver and sulphuric acid as by-products. AU’s flagship property is a fully owned Geita mine located in the Lake Victoria goldfields of the Mwanza region in north-western Tanzania.
AngloGold Ashanti has an expected revenue and earnings growth rate of 61% and more than 100%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 7.1% over the last 30 days. AU has a beta of 0.53 and a current dividend yield of 4.43%.
Dominion Energy Inc.
Dominion Energy’s long-term investment will strengthen its electric and natural gas infrastructure and increase the reliability of its services. D is adding renewable assets in its generation portfolio to achieve carbon neutrality by 2050.
Rising demand from an expanding customer base and large data centers are increasing the requirement for its services and boosting the performance of the company. D is working on Small Modular Reactor (SMR), which can create new opportunities.
Dominion and its subsidiaries sell a substantial volume of energy produced under long-term power purchase agreements, which provide visibility of earnings. D signed an MOU (Memorandum of Understanding) with Amazon to explore innovative development structures for enhancing potential SMR nuclear development in Virginia.
Dominion Energy has an expected revenue and earnings growth rate of 5.4% and 22.4%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings remained the same over the last 90 days. D has a beta of 0.62 and a current dividend yield of 4.43%.
PepsiCo Inc.
PepsiCo has been benefiting from strong international and North America beverage performance, which boosted second-quarter 2025 results. International revenues rose 6%, fueled by growth in both beverages and foods.
PepsiCo Beverages North America, or PBNA, posted solid results, led by Pepsi Zero Sugar and innovation in flavor extensions. Quaker Foods showed early signs of recovery with innovation and value-pack focus. PEP’s productivity and digital transformation efforts support long-term growth and agility.
PepsiCo has an expected revenue and earnings growth rate of 1.6% and -1.4%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.2% over the last seven days. PEP has a beta of 0.46 and a current dividend yield of 3.93%.
Cincinnati Financial Corp.
Cincinnati Financial continues to grow through a disciplined expansion of Cincinnati Re, which is making a nice contribution to its overall earnings, better pricing, strong renewal, solid retention and exposure growth. A higher volume of written policies, with a focus on earning new business through an agent-focused business model, should drive long-term premium growth.
CINF is building an agent network to sell its policies. This is because an agent-driven business is proving to be a more effective driver of growth and, therefore, holds promise for the long term. CINF’s strong cash flow continued to boost investment income, adding to the benefit of rising bond yields. Consistent cash flow strengthens liquidity and supports shareholder-friendly actions.
Cincinnati Financial has an expected revenue and earnings growth rate of 12.3% and -22.4%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.2% over the last seven days. CINF has a beta of 0.72 and a current dividend yield of 2.15%.
Genuine Parts Co.
Genuine Parts is benefiting from strategic acquisitions and digital innovation. Buyouts like MPEC and Walker have strengthened its store network and integration efforts remain on track. Restructuring actions are expected to deliver over $200 million in annual cost savings by 2026.
GPC’s e-commerce business is gaining momentum, now making up 40% of Motion sales, helped by AI tools and NAPA ProLink. GPC remains shareholder-friendly, with consistent dividend hikes and strong capital returns.
Genuine Parts has an expected revenue and earnings growth rate of 2.5% and -6.3%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings remained the same over the last 60 days. GPC has a beta of 0.77 and a current dividend yield of 3.13%.
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Buy 5 Low-Beta High-Yielding Stocks to Counter Recent Volatility
Key Takeaways
On Oct. 10, Wall Street witnessed the biggest single-day decline since Apr. 10, when President Donald Trump introduced his reciprocal tariffs. This time the reason for the U.S. stock market’s debacle is heightened trade conflicts with China.
U.S.-China Trade Conflicts Escalate
The trade conflicts between the United States and China escalated recently. On Oct. 9, China’s Ministry of Commerce issued a notification requiring all foreign companies to obtain a license to export products containing more than 0.1% of rare earth minerals that are either sourced from China or manufactured using Chinese extraction, refining, magnet-making or recycling technology.
The new rule will be effective from Dec. 1. Notably, China supplies around 70% of global rare earth minerals, critical components for today’s high-tech world. The United States is the major importer of rare earth minerals considered extremely valuable and utmost necessary inputs for the semiconductor, defense and automobile industries.
On Oct. 10, the U.S. government retaliated by imposing another 100% tariff on Chinese exports to the nation over and above what has already been imposed on these products. At present, Chinese goods are subject to an average 40% tariff in the United States. The new tariff of another 100% will be effective from Nov.1.
In his Truth Social post, President Trump wrote, “I was to meet President Xi in two weeks, at APEC, in South Korea, but now there seems to be no reason to do so. One of the policies that we are calculating at this moment is a massive increase of tariffs on Chinese products coming into the United States of America.”
At this juncture, investment in low-beta (beta >0<1) stocks with high dividend yields (>2%) and a favorable Zacks Rank will be the best option. If markets regain momentum, the favorable Zacks Rank of these stocks will capture the upside potential. However, if the downtrend continues, low-beta stocks will minimize portfolio losses and dividend payments will act as a regular income stream.
Five such stocks are: AngloGold Ashanti plc (AU - Free Report) , Dominion Energy Inc. (D - Free Report) , PepsiCo Inc. (PEP - Free Report) , Cincinnati Financial Corp. (CINF - Free Report) and Genuine Parts Co. (GPC - Free Report) . Each of our picks carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The chart below shows the price performance of our five picks year to date.
Image Source: Zacks Investment Research
AngloGold Ashanti plc
AngloGold Ashanti operates as a gold mining company in Africa, Australia, and the Americas. AU primarily explores for gold, as well as produces silver and sulphuric acid as by-products. AU’s flagship property is a fully owned Geita mine located in the Lake Victoria goldfields of the Mwanza region in north-western Tanzania.
AngloGold Ashanti has an expected revenue and earnings growth rate of 61% and more than 100%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 7.1% over the last 30 days. AU has a beta of 0.53 and a current dividend yield of 4.43%.
Dominion Energy Inc.
Dominion Energy’s long-term investment will strengthen its electric and natural gas infrastructure and increase the reliability of its services. D is adding renewable assets in its generation portfolio to achieve carbon neutrality by 2050.
Rising demand from an expanding customer base and large data centers are increasing the requirement for its services and boosting the performance of the company. D is working on Small Modular Reactor (SMR), which can create new opportunities.
Dominion and its subsidiaries sell a substantial volume of energy produced under long-term power purchase agreements, which provide visibility of earnings. D signed an MOU (Memorandum of Understanding) with Amazon to explore innovative development structures for enhancing potential SMR nuclear development in Virginia.
Dominion Energy has an expected revenue and earnings growth rate of 5.4% and 22.4%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings remained the same over the last 90 days. D has a beta of 0.62 and a current dividend yield of 4.43%.
PepsiCo Inc.
PepsiCo has been benefiting from strong international and North America beverage performance, which boosted second-quarter 2025 results. International revenues rose 6%, fueled by growth in both beverages and foods.
PepsiCo Beverages North America, or PBNA, posted solid results, led by Pepsi Zero Sugar and innovation in flavor extensions. Quaker Foods showed early signs of recovery with innovation and value-pack focus. PEP’s productivity and digital transformation efforts support long-term growth and agility.
PepsiCo has an expected revenue and earnings growth rate of 1.6% and -1.4%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.2% over the last seven days. PEP has a beta of 0.46 and a current dividend yield of 3.93%.
Cincinnati Financial Corp.
Cincinnati Financial continues to grow through a disciplined expansion of Cincinnati Re, which is making a nice contribution to its overall earnings, better pricing, strong renewal, solid retention and exposure growth. A higher volume of written policies, with a focus on earning new business through an agent-focused business model, should drive long-term premium growth.
CINF is building an agent network to sell its policies. This is because an agent-driven business is proving to be a more effective driver of growth and, therefore, holds promise for the long term. CINF’s strong cash flow continued to boost investment income, adding to the benefit of rising bond yields. Consistent cash flow strengthens liquidity and supports shareholder-friendly actions.
Cincinnati Financial has an expected revenue and earnings growth rate of 12.3% and -22.4%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.2% over the last seven days. CINF has a beta of 0.72 and a current dividend yield of 2.15%.
Genuine Parts Co.
Genuine Parts is benefiting from strategic acquisitions and digital innovation. Buyouts like MPEC and Walker have strengthened its store network and integration efforts remain on track. Restructuring actions are expected to deliver over $200 million in annual cost savings by 2026.
GPC’s e-commerce business is gaining momentum, now making up 40% of Motion sales, helped by AI tools and NAPA ProLink. GPC remains shareholder-friendly, with consistent dividend hikes and strong capital returns.
Genuine Parts has an expected revenue and earnings growth rate of 2.5% and -6.3%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings remained the same over the last 60 days. GPC has a beta of 0.77 and a current dividend yield of 3.13%.