How to Beat a Volatile Market With Dividend Stocks

With the S&P 500 Volatility Index up nearly 30% from its April lows, we have no choice but to accept the fact that volatility and worry are creeping their way back into the marketplace. Luckily, we have a wide swath of companies to choose from across a wide range of industries. We don't have to immediately turn to short-selling in a volatile environment to try to make a profit or preserve our capital. Sometimes, finding winning stocks in a down market can start with something as simple as following a company's beta.

This search was aimed at larger companies because they have historically stronger earnings track records and usually possess higher dividend yields. As you'd expect, from the roughly 90 results or so, I ended up with a lot of stocks from the same sectors. So I further filtered the results to find the best balance between beta and dividend yield, with an emphasis on finding a diversified set of companies from different sectors.

Source: Motley Fool

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