In order to profit from short-term momentum and intraday price changes, investors tend to choose high beta securities. Understanding the beta value is critical before investing in stocks with a high beta. The higher the beta of a stock, the more risk it carries, but the higher the return. The beta value of a stock is calculated by comparing its volatility to that of the overall market or an index that the stock follows. A beta value greater than one indicates that a stock is more volatile than the overall market. In the same way, if a company’s volatility is lower than the market average, it is assigned a lower beta. It’s not unusual for the stock market to be volatile, according to Brad Lineberger, the CEO of Seaside Wealth Management. He advised investors to take advantage of market dips and hold their investments during periods of poor performance. Earnings, dividend yields, and stock valuation will always be used to evaluate stocks.
Insider Monkey selected 10 high beta dividend stocks. In addition to its headquarters in New York, International Flavors & Fragrances Inc. has production facilities in 47 different countries. Cosmetic actives and flavors are produced by the company for global distribution. Earnings and revenue for the third quarter of 2021 exceeded expectations. Sysco Corporation was given a Hold rating and an $82 price target by Deutsche Bank analyst Brian Mullan on January 4. At current levels, an analyst believes the risk/reward is fairly balanced following the stock’s 15% surge in December alone. Baker Hughes is one of the world’s leading oil field service providers. Drilling, formation evaluation and completion, production, and reservoir consulting are all services provided by the firm. Baker Hughes Company’s dividend yield currently stands at 2.60 percent. Consumer electronics retailer Best Buy Company, Inc. operates in the United States, Canada and Puerto Rico. In the third quarter of 2021, the company exceeded expectations in both earnings and revenue. A multi-year replacement cycle for these products is likely to have a negative impact on sales during the pandemic. Q1 2022 guidance was released on January 26 by Boston Properties. From $115, Vikram Malhotra has raised the price target on Boston Properties to $120. The real estate investment trust sector faces a “tricky macro set-up” in 2022 after outperforming the S&P 500 Index in 2021. For more details, click 10 High Beta Dividend Stocks.
Unsplash
