"Undoubtedly, the pick-up in volatility has many investors feeling unnerved. And while I wouldn't dump the hard-hit AI stocks that haven't participated in the more recent run-up in broad markets, I would look to consider some of the lower-beta dividend stocks if you're bracing for more volatility as we head into the end of the year. Perhaps the best way to defend against volatility is to go for the steadier names."
"J.M. Smucker ( NYSE:SJM) shares will probably be spared come the next market correction because they've already been through quite a bit of pain. The beta is also at the floor, currently sitting at 0.21. The jam maker has shed over 36% from its 2022 highs and seems to be entering oversold territory. With a mixed quarter in the books and pressures weighing down margins, it seems like shares of the consumer staple are worth throwing in the towel on."
The S&P 500 is nearing prior highs amid a strong market run, even as volatility has picked up and unnerved many investors. Lower-beta dividend stocks offer a defensive option for investors bracing for renewed volatility or a potential AI-driven pullback. There are real risks if major tech names, especially heavy AI spenders, disappoint on earnings. J.M. Smucker exhibits low beta (0.21), has fallen over 36% from 2022 highs, and shows mixed results with margin pressures, yet it retains strength in coffee and steady demand for Uncrustables, making it a potential defensive holding.
Read at 24/7 Wall St.
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