Investors analyzing the Magnificent Seven stocks, Amazon.com Inc. (ticker: AMZN), Microsoft Corp. (MSFT), Alphabet Inc. (GOOG, GOOGL), Nvidia Corp. (NVDA), Apple Inc. (AAPL), Tesla Inc. (TSLA) and Meta Platforms Inc. (META), tend to focus on their products and services.
However, it may be more useful to focus on their fundamentals, particularly when it comes to volatility and shareholder returns. One common measure of volatility is beta, which measures a stock’s historical sensitivity relative to the broader market.
The market has a beta of 1. Stocks with betas above 1 amplify market movements, while those below 1 tend to move less. Based on data from Yahoo Finance, the Magnificent Seven currently have an average five-year monthly beta of 1.44. The group ranges from a low of 1.09 for Apple to a high of 2.2 for Nvidia.
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Part of that volatility reflects the nature of the technology sector itself. Many of these companies remain exposed to consumer spending, corporate technology budgets, advertising demand, semiconductor cycles and shifts in investor sentiment toward growth stocks.
The Magnificent Seven also stand apart in how they deploy capital. While these companies generate enormous amounts of free cash flow, much of it is being directed toward the AI buildout.
Capital expenditures for the Magnificent Seven currently include investments in data centers, semiconductor infrastructure, networking equipment and cloud computing capacity. These firms collectively expect to spend hundreds of billions of dollars over the coming years.
One consequence of that spending is that relatively little cash is being returned to shareholders through dividends. Based on Yahoo Finance data, the Magnificent Seven currently offer an average forward dividend yield of just 0.34%, ranging from 0% for Amazon and Tesla to 0.93% for Microsoft.
That said, investors looking to bet against the Magnificent Seven do not necessarily need to short the group. Short selling can be difficult in a bull market, particularly when the companies involved are highly profitable, widely held and continue growing earnings.
An alternative approach is to focus on the opposite set of characteristics: stocks that offer high dividend yields while exhibiting lower volatility than the market. This approach can also uncover potentially undervalued companies in out-of-favor sectors, where pessimistic sentiment has already been priced in and future returns may improve if market leadership shifts.
Here are five of the best high-dividend, low-volatility stocks to buy today, each screened for a beta of 0.5 or lower and a forward dividend yield of 2% or higher:
| Stock | Beta | Dividend Yield |
| Coca-Cola Co. (KO) | 0.35 | 2.6% |
| Johnson & Johnson Inc. (JNJ) | 0.26 | 2.3% |
| McDonald’s Corp. (MCD) | 0.41 | 2.7% |
| Altria Group Inc. (MO) | 0.50 | 6.3% |
| Colgate-Palmolive Co. (CL) | 0.32 | 2.3% |
Coca-Cola Co. (KO)
Founded in 1886, Coca-Cola is one of America’s oldest publicly traded companies and is also a Dividend King, having increased its annual dividend for 64 consecutive years. The stock currently pays a 2.6% forward dividend yield and carries a remarkably low five-year monthly beta of just 0.35.
That stability is unsurprising given Coca-Cola’s position as one of the largest consumer staples companies in the world. Demand for its products tends to be relatively inelastic, meaning consumers continue purchasing them even during periods of economic stress because they remain affordable and deeply ingrained in everyday consumption habits.
Coca-Cola’s business model has also been engineered for resilience. The company no longer handles most beverage production itself. Instead, it manufactures concentrate and syrup at very low cost before selling them to independent bottling partners that operate exclusive territories and assume much of the manufacturing and distribution burden.
Coca-Cola focuses primarily on brand management, marketing and capital allocation, helping it generate an impressive 28.7% operating margin. The company has also continued investing in growth markets, particularly across Latin America, where management sees opportunities to expand market share.
Coca-Cola currently trades at a forward price-to-earnings (P/E) ratio of 24.5 times, above the broader consumer staples sector. Still, investors may find comfort in the words of Warren Buffett, whose holding company Berkshire Hathaway Inc. (BRK.A, BRK.B) remains one of Coca-Cola’s largest shareholders: “It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price.”
Johnson & Johnson Inc. (JNJ)
Rivaling Coca-Cola in longevity is Johnson & Johnson, which was also founded in 1886 and is another member of the Dividend Kings cohort, with 64 consecutive years of dividend increases. Unlike Coca-Cola, however, Johnson & Johnson is no longer a consumer staples company.
That chapter largely ended when the firm spun off brands such as Tylenol, Listerine and Band-Aid into Kenvue Inc. (KVUE). What remained was a more streamlined, growth-oriented business focused on its core strengths in pharmaceuticals and medical technology.
That restructuring did little to change Johnson & Johnson’s characteristics. The stock currently pays a 2.3% forward dividend yield. Over the past five years, management has returned approximately 65% of free cash flow to shareholders through dividends and buybacks, supported by a portfolio where over 75% of revenue comes from businesses holding either the No. 1 or No. 2 position in global market share.
The stock carries a remarkably low five-year monthly beta of 0.26, making it roughly one-quarter as volatile as the S&P 500. Much of that resilience stems from the inelastic demand for healthcare products and treatments. Even during economic downturns, patients generally cannot defer medications, medical procedures or healthcare services indefinitely.
[Read: 9 Highest Dividend-Paying Stocks in the S&P 500]
McDonald’s Corp. (MCD)
Restaurant stocks are not typically viewed as low-volatility investments. As members of the consumer discretionary sector, their performance is tied to economic cycles and changing consumer preferences.
Rising labor and ingredient costs frequently force restaurant operators to raise prices, but unlike healthcare, utilities or consumer staples, restaurant spending is elastic. Even modest price increases can push consumers toward competitors or encourage them to dine out less frequently.
McDonald’s has largely bucked this convention. The company generates an impressive 31.6% profit margin because most locations are operated by franchisees rather than the company itself. In many cases, McDonald’s also owns the underlying real estate and collects rent.
Despite operating in a mature industry, the company continues to generate growth through international expansion. In its most recent quarter, comparable sales increased 3.9% in international operated markets and 3.4% in international developmental licensed markets.
That growth has supported an attractive shareholder return program. McDonald’s currently pays a 2.7% forward dividend yield and has increased its dividend for more than 25 consecutive years, making it a member of the S&P 500 Dividend Aristocrats index. Strong free cash flow helps support the payout, which currently represents a manageable 59.8% payout ratio.
Altria Group Inc. (MO)
The tobacco industry has spent decades adapting to increasingly restrictive regulation, higher excise taxes, advertising limitations and declining smoking rates across developed economies. To survive, major tobacco companies have generally relied on two strategies.
First, they have consolidated aggressively to achieve economies of scale, all while targeting international markets. Second, they have focused on cost reductions while steadily increasing cigarette prices. The underlying assumption is that while the number of smokers may decline over time, many remaining customers are sufficiently brand loyal and nicotine dependent to tolerate gradual price increases. As a result, higher pricing and improved efficiency have often offset shrinking industry volumes.
Altria is perhaps the clearest example of this strategy. The company currently pays a hefty 6.3% forward dividend yield, though its 87.7% payout ratio would normally raise concerns. In Altria’s case, however, the figure is less alarming because management has relatively few opportunities to reinvest capital into organic growth. The stock also carries a five-year beta of just 0.5, making it half as volatile as the market.
There are also signs that the business remains more resilient than many investors assume. First-quarter 2026 results showed net revenue growth of 3.2% year over year, or 5.3% after adjusting for excise taxes. Management cited continued strength in premium combustible products, particularly Marlboro, as well as solid performance from its oral tobacco segment.
Beyond dividends, Altria continues to repurchase shares aggressively. During the first quarter, the company bought back 4.5 million shares at an average price of $62.33 for a total of $280 million, leaving $720 million remaining under its current $2 billion authorization scheduled to expire at the end of 2026.
Colgate-Palmolive Co. (CL)
Low volatility in a stock price is influenced by many factors, but one of the most important is the stability of the underlying business. Consider a cyclical industry such as energy, where earnings can swing dramatically between boom and bust years depending on commodity prices. Investors often react to those fluctuations by aggressively repricing shares ahead of earnings reports.
Now compare that to a company that sells everyday household products across hundreds of countries, many of which are pantry and bathroom staples purchased regardless of economic conditions. That consistency tends to produce steadier earnings and, in turn, lower share-price volatility.
That describes Colgate-Palmolive well. The company owns a portfolio of widely recognized brands including Colgate toothpaste, Palmolive dish soap, Speed Stick deodorant, Ajax household cleaners, Irish Spring soap, Softsoap hand soap, Hill’s Science Diet pet food and Hill’s Prescription Diet.
Many of these products benefit from decades of brand building and, in some cases, recommendations from healthcare professionals such as dentists. The result is an entrenched business model that has been difficult for competitors to disrupt. Unsurprisingly, the stock carries a five-year beta of just 0.32.
The greater risk for investors is often valuation rather than business quality. During periods when defensive stocks are in high demand, shares can become expensive relative to their growth prospects. Colgate currently trades at a fair forward P/E ratio of 23.4 times and pays a 2.3% forward dividend yield. The company has paid uninterrupted dividends since 1895.
First-quarter 2026 results were somewhat mixed. Net sales increased 8.4% on a GAAP basis, but earnings per share declined 6% and gross profit margin slipped 20 basis points, or 0.2%, to 60.6%. Even so, Colgate’s competitive position remains exceptionally strong. The company continues to hold a leading 41.1% global toothpaste market share and a 32.6% global toothbrush market share.
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5 Best High-Dividend, Low-Volatility Stocks to Buy Today originally appeared on usnews.com
Update 06/18/26: This story was published at an earlier date and has been updated with new information.
