Discovering Hidden Gems
A glimpse at the Zacks Rank #1 (Strong Buy) list reveals enticing opportunities among stocks boasting Beta ratios under 1.0 – a sign of potential lower volatility compared to the overall market. Considering the recent market surges of the S&P 500 and Nasdaq, it’s prudent to explore stocks that exhibit stability and resilience during market downturns. Even more appealing are low beta stocks offering dividend yields exceeding 5%.
Organon & Co: A Pillar of Stability
Stepping into the medical sector, Organon & Co emerges as a standout with a Beta of 0.79 and a hearty annual dividend yield of 6.04%. Specializing in women’s health, the company surpassed Q4 earnings projections by 10% with an EPS of $0.88 per share. Forecasts suggest a 3% earnings uptick in fiscal 2024, with an additional 3% surge anticipated in FY25, reaching $4.41 per share. Recent earnings estimate revisions and a compelling valuation at 4.3 times forward earnings make Organon’s stock shine. An “A” Zacks Style Scores grade further reinforces its strong buy rating.
Patria Investments Limited: Investing in Excellence
With a modest Beta of 0.58, Patria Investments Limited, a Latin American private markets investment firm, offers a substantial annual dividend yield of 10.53% – a figure that dwarfs the S&P 500’s 1.42% average. Impressively, the company has raised dividends seven times in the last five years, boasting an annualized growth rate of 12.67%. Patria’s Q4 earnings outstripped estimates by 38% with an EPS of $0.47 per share, projecting high double-digit growth in its upcoming fiscal year.
Brookline Bancorp: Navigating Financial Waters
Completing the trio, we delve into the financial sector with Brookline Bancorp, the parent company of Brookline Bank, Bank Rhode Island, and PCSB Bank, among others. With a Beta of 0.78, the stock offers a solid annual dividend yield of 5.54%, having boosted payouts six times in the last five years. Despite a slight dip in annual earnings projected for this year, FY25 EPS is slated to soar by 26% to $1.23 per share. Recent earnings beat and positive revisions bode well for Brookline Bancorp’s future.
Final Thoughts
The current juncture appears opportune for considering these esteemed stocks, as continued earnings estimate revisions following favorable Q4 results are likely to drive further upside. The attractive combination of high dividend yields and low beta ratios makes these investments all the more tantalizing for discerning investors.
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