Defensive-minded investors looking for income will often gravitate toward high-dividend, low-volatility stocks.
These are companies that offer above-average payouts relative to a benchmark like the S&P 500, while also exhibiting lower beta, a measure of how sensitive a stock is to broader market movements.
Specifically, investors can review the underlying index methodology of passive ETFs to understand exactly how holdings are selected and weighted. For example, a defensive investor might look to the Invesco S&P 500 High Dividend Low Volatility ETF (ticker: SPHD) as a starting point for idea generation.
Here are five of the best high-dividend, low-volatility stocks from SPHD’s holdings as of April 17.
This post originally appeared at U.S. News & World Report.