Buy 5 Low-Beta High-Yielding Stocks Amid Global Economic Uncertainty

Wall Street saw an impressive bull run in the last three years. However, 2026 has turned out mixed so far for the U.S. stock markets. Volatility gripped Wall Street in February primarily due to three factors discussed later.

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: The Hershey Co. HSY, BHP Group Ltd. BHP, Rio Tinto Group RIO, Atmos Energy Corp. ATO and Entergy Corp. ETR. Each of our picks currently carries either a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Volatility Reappears on Wall Street

The primary source of recent volatility is the concern about the continuity of the AI trade. Investors are worried about the sustainability of the ongoing massive AI capital expenditure by hyperscalers given the uncertainty of the timing of monetization. Moreover, investors are also skeptical that AI tools will eventually cannibalize the enterprise software market.

The second source of volatility is the uncertainty about President Donald Trump’s Liberation Day tariffs, their legal validity of imposition and impacts. A sticky inflation rate further complicated the situation. Moreover, market participants have no clue about the Fed’s future course of interest rate trajectory.

Finally, geopolitical conflicts, especially in the Middle East, are causes of concern. The recent war in that region with Iran is likely to inflate global crude oil prices. This will severely impact the inflationary situation across the world.

The chart below shows the price performance of our five picks year to date.

Image Source: Zacks Investment Research

The Hershey Co.

Zacks Rank #1 Hershey is focused on strengthening innovation, supply-chain agility and commercial execution as it expands its presence across the snacking category. HSY is supported by strong pricing discipline, a successful innovation pipeline and solid growth in salty snacks.

Hershey is progressing through a multi-year transformation that modernizes and integrates its supply chain, strengthens commercial capabilities, and enhances demand forecasting and execution. HSY highlighted upgrades across procurement, production, distribution and commercial planning, supported by investments in data, analytics and digital tools.

HSY’s retail takeaway improved across core categories, reflecting better shelf execution and effective brand investment. Management expressed confidence in returning to its long-term growth algorithm in the following year.

Hershey has an expected revenue and earnings growth rate of 4.8% and 29.3%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 16.7% over the last 30 days. HSY has a beta of 0.14 and a current dividend yield of 2.46%.

BHP Group Ltd.

Zacks Rank #1 BHP Group witnessed a 1% dip in iron ore output, while copper production was up 4% in the first quarter of fiscal 2026. BHP projects iron ore production at 258-269 Mt for fiscal 2026. The midpoint indicates in-line results with fiscal 2025. Western Australia Iron Ore continues to perform well and maintains its position as the lowest-cost iron ore producer.

BHP’s copper guidance of 1,900-2,000 kt indicates a 3% decline at the midpoint, reflecting planned lower grades in Chile. Iron ore and copper prices have gained lately, which will boost its results in the upcoming quarters.

BHP’s portfolio shift toward commodities like copper and potash will help it ride on growing global trends such as decarbonization and electrification. Aided by its strong cash flow, BHP has lowered its debt over the past few years, which is commendable.

BHP Group has an expected revenue and earnings growth rate of -1.5% and 32.7%, respectively, for the current year (ending June 2026). The Zacks Consensus Estimate for the current year’s earnings has improved 0.8% over the last seven days. BHP has a beta of 0.64 and a current dividend yield of 2.91%.

Rio Tinto Group

Acks Rank #1 Rio Tinto is an international mining company. RIO has interests in mining for aluminum, borax, coal, copper, gold, iron ore, lead, silver, tin, uranium, zinc, titanium, dioxide feedstock, diamonds, talc and zircon. RIO’s various mining operations are located in New Zealand, Australia, South Africa, Europe and Canada.

Rio Tinto has an expected revenue and earnings growth rate of 10.7% and 21.8%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 1.4% over the last seven days. RIO has a beta of 0.53 and a current dividend yield of 2.97%.

Atmos Energy Corp.

Zacks Rank #2 Atmos Energy benefits from rising natural gas demand and the implementation of new rates in its service territories. ATO's long-term capital investment is directed to replace and upgrade aging transmission and distribution infrastructure, which will increase the reliability of its services.
Atmos Energy benefits from strategic acquisitions, the addition of industrial customers and constructive rate outcomes, which contribute to overall revenue and profitability growth. As of Dec. 31, 2025, ATO had added nearly 54,000 new customers.

Stable performance has allowed ATO to enhance shareholder value through dividend hikes. ATO has enough liquidity to meet its debt obligations. The steady performance of ATO has enabled it to reward shareholders through consistent increases in annual dividend rates.

Atmos Energy has an expected revenue and earnings growth rate of 18.8% and 9%, respectively, for the current year (ending September 2026). The Zacks Consensus Estimate for the current year’s earnings has improved 0.6% over the last 30 days. ATO has a beta of 0.74 and a current dividend yield of 2.14%.

Entergy Corp.

Zacks Rank #2 Entergy plans to invest $41 billion during 2026-2029 to upgrade its infrastructure and support renewable expansion. ETR is also investing significantly in grid hardening to make its transmission and distribution systems more resilient.

Entergy Mississippi plans to construct, own and operate the 80-MW Delta Solar facility, which is expected to be in service by the end of 2027, as well as the 190-MW Penton Solar facility, which is expected to be in service by early 2028.

ETR plans to add 275 MW of nuclear power through upgrades in its existing nuclear plants, to expand its nuclear capacity further. ETR has also secured an early site permit for a new nuclear reactor at its Grand Gulf site in Mississipi.

Entergy has an expected revenue and earnings growth rate of 6.5% and 12.5%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 0.2% over the last 30 days. ETR has a beta of 0.64 and a current dividend yield of 2.39%.

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Entergy Corporation (ETR): Free Stock Analysis Report

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Atmos Energy Corporation (ATO): Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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