Purchase 5 High-Yield, Low-Volatility Stocks During Worldwide Economic Instability

Wall Street's Recent Performance and Market Outlook

Over the past three years, U.S. equities have enjoyed a strong upward trend. However, 2026 has brought a more uncertain environment, with market volatility returning in February due to several key factors.

Optimal Investment Strategy in Uncertain Times

Given the current market conditions, focusing on stocks with low beta values (between 0 and 1), robust dividend yields (above 2%), and a positive Zacks Rank may be a prudent approach. Should the market recover, these stocks' favorable Zacks ratings could help investors benefit from any upside. Conversely, if the downturn persists, the lower volatility of these stocks can help cushion losses, while their dividends provide a steady income stream.

Top Five Low-Beta, High-Yield Stocks to Consider

• The Hershey Co. (HSY)
• BHP Group Ltd. (BHP)
• Rio Tinto Group (RIO)
• Atmos Energy Corp. (ATO)
• Entergy Corp. (ETR)

All of these selections currently hold either a Zacks Rank #1 (Strong Buy) or #2 (Buy).

Key Drivers of Market Volatility

Several issues have contributed to the recent market swings:

• AI Investment Concerns: Investors are questioning whether the current surge in AI spending by major tech companies can be sustained, especially given uncertainties around when these investments will pay off. There are also worries that AI could disrupt the enterprise software sector.
• Trade and Policy Uncertainty: The potential impact and legality of President Donald Trump’s proposed tariffs, along with persistent inflation and unclear Federal Reserve interest rate policies, have added to market uncertainty.
• Geopolitical Tensions: Ongoing conflicts in the Middle East, particularly recent hostilities involving Iran, threaten to drive up global oil prices and worsen inflation worldwide.

The chart below illustrates the year-to-date performance of the five highlighted stocks.

Image Source: Zacks Investment Research

Company Highlights

The Hershey Co. (HSY)

Hershey, rated Zacks Rank #1, is enhancing its innovation, supply chain flexibility, and commercial execution as it broadens its reach in the snacking market. The company benefits from disciplined pricing, a strong innovation pipeline, and growth in salty snacks. Hershey is undergoing a multi-year transformation to modernize its supply chain, improve commercial capabilities, and upgrade demand forecasting, supported by investments in digital tools and analytics. Retail performance has improved, and management is optimistic about returning to long-term growth next year. For the current year, Hershey is projected to grow revenue by 4.8% and earnings by 29.3%. The consensus earnings estimate has increased by 16.7% over the past month. HSY has a beta of 0.14 and a dividend yield of 2.46%.

BHP Group Ltd. (BHP)

BHP, also holding a Zacks Rank #1, saw a slight decrease in iron ore output but a 4% rise in copper production in the first quarter of fiscal 2026. The company expects iron ore production to remain steady compared to the previous year, with its Western Australia operations maintaining industry-leading cost efficiency. While copper output is expected to dip slightly due to lower grades in Chile, recent price increases for both iron ore and copper should support future results. BHP’s strategic shift toward commodities like copper and potash positions it well for trends such as decarbonization and electrification. The company has also reduced its debt thanks to strong cash flow. For the current year ending June 2026, BHP anticipates a 1.5% decline in revenue but a 32.7% increase in earnings. The consensus earnings estimate has improved by 0.8% in the past week. BHP’s beta is 0.64, and its dividend yield stands at 2.91%.

Rio Tinto Group (RIO)

Rio Tinto, with a Zacks Rank #1, is a global mining leader with operations spanning New Zealand, Australia, South Africa, Europe, and Canada. The company is involved in mining a wide range of resources, including aluminum, copper, gold, iron ore, and more. For the current year, Rio Tinto expects revenue growth of 10.7% and earnings growth of 21.8%. The consensus earnings estimate has risen by 1.4% over the past week. RIO’s beta is 0.53, and its dividend yield is 2.97%.

Atmos Energy Corp. (ATO)

Atmos Energy, rated Zacks Rank #2, is benefiting from increased natural gas demand and new rate implementations in its service areas. The company is investing in upgrading and replacing aging infrastructure, which should enhance service reliability. Strategic acquisitions, new industrial customers, and favorable rate decisions have all contributed to revenue and profit growth. As of December 31, 2025, Atmos had added nearly 54,000 new customers. The company’s stable performance has allowed for consistent dividend increases and sufficient liquidity to meet debt obligations. For the current fiscal year ending September 2026, Atmos expects revenue to grow by 18.8% and earnings by 9%. The consensus earnings estimate has improved by 0.6% over the past month. ATO’s beta is 0.74, and its dividend yield is 2.14%.

Entergy Corp. (ETR)

Entergy, with a Zacks Rank #2, plans to invest $41 billion from 2026 to 2029 to modernize its infrastructure and expand renewable energy capacity. The company is also strengthening its grid to improve resilience. Entergy Mississippi is set to build and operate two solar facilities, the 80-MW Delta Solar (expected online by late 2027) and the 190-MW Penton Solar (targeted for early 2028). Entergy also aims to add 275 MW of nuclear capacity through upgrades and has secured a permit for a new reactor at its Grand Gulf site. For the current year, Entergy projects revenue growth of 6.5% and earnings growth of 12.5%. The consensus earnings estimate has increased by 0.2% in the past month. ETR’s beta is 0.64, and its dividend yield is 2.39%.

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Get More Stock Recommendations

Looking for additional stock picks? Zacks Investment Research offers a free report on the 7 Best Stocks for the Next 30 Days.

Free Stock Analysis Reports

• Entergy Corporation (ETR): Free Stock Analysis Report
• BHP Group Limited Sponsored ADR (BHP): Free Stock Analysis Report
• Hershey Company (The) (HSY): Free Stock Analysis Report
• Rio Tinto PLC (RIO): Free Stock Analysis Report
• Atmos Energy Corporation (ATO): Free Stock Analysis Report