Six Low Beta Dividends (Up To 8.4%) To Beat Market Anxiety In 2026

Concerned about a pullback? An outright bear market? Fair enough and, if so, let's talk about low beta dividend stocks.

Published on Feb. 8, 2026

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New tariffs, a government shutdown, and a brutal selloff in the software sector have some investors concerned about a potential market pullback or bear market in 2026. The article recommends focusing on low beta dividend stocks as a defensive strategy, highlighting six companies - Apple Hospitality REIT, Campbell's Co., Kraft Heinz, Flowers Foods, Progressive, and Gaming & Leisure Properties - that offer yields ranging from 5.8% to 8.4% and have betas below 1, suggesting lower volatility compared to the overall market.

Why it matters

Low beta stocks are considered less volatile than the overall market, so they can provide a defensive strategy for investors concerned about potential market downturns. The article argues that in an uncertain market environment, focusing on these types of dividend-paying stocks can help investors preserve capital and generate income.

The details

The article profiles six low beta dividend stocks: Apple Hospitality REIT (8.1% yield), Campbell's Co. (5.8% yield), Kraft Heinz (6.7% yield), Flowers Foods (8.4% yield), Progressive (7.0% yield), and Gaming & Leisure Properties (7.0% yield). It discusses the current challenges and outlooks for each company, as well as their low beta characteristics that could make them attractive defensive plays.

  • Late last year, S&P Global Ratings lowered its rating on Flowers Foods from BBB to BBB-, the lowest tier of investment-grade.
  • The Supreme Court is set to hear the case Flowers Foods v. Brock next month, which will determine whether last-mile drivers are exempt from the Federal Arbitration Act.

The players

Apple Hospitality REIT

A hotel real estate investment trust with tranquil 1- and 5-year betas of 0.73 and 0.83, respectively.

Campbell's Co.

A consumer staples company with a wide portfolio of grocery brands, including Campbell's soup, Pepperidge Farm, Goldfish crackers, and more. It has struggled with inflation, cautious consumers, and rising input costs.

Kraft Heinz

A consumer staples company that recently announced it will split its business into two separate entities in an effort to 'unlock shareholder value', though this strategy has not been successful so far.

Flowers Foods

A bakery giant facing many of the same pressures as other consumer staples companies, as well as a case heading to the Supreme Court that could impact its business.

Progressive

An insurance company that is using AI to refine its Snapshot program and analyze damage claims, though its modest betas reflect recent struggles rather than historical stability.

Gaming & Leisure Properties

A casino and gaming REIT with properties spread across 20 states, rather than being concentrated in Las Vegas. It has maintained a reasonable amount of leverage and continues to grow its dividend.

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What they’re saying

“Concerned about a pullback? An outright bear market? Fair enough and, if so, let's talk about beta.”

— Brett Owens, Chief Investment Strategist (Forbes)

“The idea, of course, is not to lose money. It's to make money regardless of what happens in the broader market.”

— Brett Owens, Chief Investment Strategist (Forbes)

What’s next

The judge in the Flowers Foods v. Brock case will decide next month whether last-mile drivers are exempt from the Federal Arbitration Act, which could have implications for the company.

The takeaway

This article highlights a defensive investment strategy focused on low beta dividend stocks that could help investors preserve capital and generate income in a potentially volatile market environment in 2026. The six companies profiled offer yields ranging from 5.8% to 8.4% and have betas below 1, suggesting lower volatility compared to the overall market.