Where to hide out? Try these low-volatility, dividend payers with growth

A collection of stocks might be able to provide investors safety as the market sells off as recession fears flare amid worrisome signs of stalling economic growth. The Dow Jones Industrial Average sank nearly 500 points on Thursday, while the S & P 500 and Nasdaq Composite slipped 1.37% and 2.3%, respectively. A weaker-than-expected ISM manufacturing index reading underpinned the sell-off. Then, the sour market sentiment continued into Friday’s trading, stoked by weak trends in the latest non-farm payrolls report. The data points have investors questioning whether the Federal Reserve has fallen behind the curve by maintaining elevated interest rates. Against this backdrop, CNBC Pro screened for stocks that can help investors hide out from recent market turmoil, abiding by the following criteria: Stocks on the list maintain a beta under one, a sign that they are less volatile than the market. Each stock has a dividend yield over 2% Earnings growth above 5% for the past three years Stocks have been in the green for the last month Readers can add and customize this screen using the CNBC Pro Stock Screener Tool here . McDonald’s stock made the list. Shares have pulled back more than 9% in 2024. Stock in the fast food chain is exceedingly less volatile than the broader market with a beta of 0.71. Despite weaker-than-expected second-quarter results , Morgan Stanley Wealth Management added McDonald’s stock to its dividend equity portfolio in a Friday note, citing its attractive valuation as the company pushes to revamp its menu pricing. MCD YTD mountain McDonald’s stock. “With rising prices amid a mixed consumer spending backdrop, MCD has experienced pressure on its comps, weighing on earnings and valuation,” analyst Daniel Skelly said. “However, we believe management’s plan to lean into “value” is credible and supported by historical precedent.” “With the stock trading at a reasonable valuation, we believe this offers a compelling opportunity to add a quality and defensive consumer franchise to the model,” Skelly added. Digital infrastructure firm Equinix also made the list. Shares are only up roughly 1% in 2024, but the stock is gaining momentum and has advanced more than 7% over the past month alone. The company’s 2.1% dividend yield is second only to CVS Health ‘s 4.43% on the list. EQIX YTD mountain Equinix stock. Wells Fargo upgraded Equinix to overweight from equal weight in late July. The firm grew bullish on an expectation that data center demand will accelerate in 2025, and said the stock has an attractive risk-to-reward profile heading into quarterly results on Aug. 7. “[W]hile there are still some questions as to whether [Equinix] can stabilize (or improve) revenue growth into 2025, positive gross bookings commentary out of Q1 and an expectation for improving cabinet additions in 2H’24 should lead to an inflection in revenue in 2H’24 and into 2025,” analyst Eric Luebchow wrote. “With sentiment / expectations relatively low, we like the set-up, as we suspect EQIX can maintain constant-currency revenue guide and accelerate revenue growth in 2H’24,” the analyst added. Other potential safe havens on the list include L3Harris Technologies and Omnicom Group .