Anne Kates Smith, Kiplinger, on 7 Stocks That Let You Sleep Tight

Good morning and welcome back to the financial exchange genetic barrier for in June. I hate to we've kind of been staying away from market updates as things though that yet Dow's down now 158 points NASDAQ down thirty years late yesterday via. Yeah S&P 500 down twelve Nazi tenure US treasury at one point 80. Gold trading down fifteen dollars sixty cents oil down a dollar thirty to 957. -- makes our next guest that much more timely her name is and Kate Smith. -- a terrific article it's called seven stocks that let you sleep tight. And welcome to the show Daria -- -- This is a great data heavy on because we're really talking about. -- beta stocks. And you've selected seven that you think are just a little bit safer than the overall stock market how what was your criteria that he used. They are over the long yeah let's be clear these these diet can have -- an appointment to. We call and other things but over the Long Island these companies have been around for the long -- day. Tend to be aware of papers that the criteria that I used that book says. Beta which is easy for investors to look up I'm not that I'm -- a group of finance to -- -- and that measures that stopped volatility relative to the market. That I looked for her strong balance sheet. Generous and growing dividend. Is that how you picked ADP because on the Kennedy DP. Got a beta of point 84 in a dividend to -- two point 9%. And and yes I'm a -- much higher ingenious. -- have the worst meaning have. They get we embarked that you can't biased dot com -- volatility at. You have to look at these other safety net teacher. Do most of them paid dividends though -- that when they're low volatility. Yes most of them in an album out. And all of these. They do they it Coca -- on your list and they had this when he hasn't even lower -- data on Coca-Cola. Is point 49. Dividend two point 6%. Yeah and you know he's in order -- anywhere in the world you know the these companies. Are a lot of multinational that's not such a good thing these days with Europe all of -- part that could be ahead went for them but they are. -- tower houses with. Fortress like balance sheet for the most. You know what's interesting about these stocks acumen and a day like today when the stock markets. Having a pretty good correction like the Dow was down more than 1%. But ExxonMobil which is one of your you know there are companies that you've written about it's only down. In all the point 8%. Solely if it's it goes down they seemed to go down a lot less in value when you're in the midst of a good stock market correction but ExxonMobil also paying a dividend of two point 7%. And that is all key to these spoke volatility. They won't lag ample market -- what we are and when I started for. It. Your daughter probably looked is that in what do you do -- -- and I start completely one another story about apple you know. I expect right exactly but over the long -- These dot will. All -- and -- and I hope you don't vote volatility investing. From 1968. For 2011. A basket of low volatility that's the ticket bought that they can't which. Was around the time of the financial crisis -- 32%. -- to -- as camped out at one cent. And I'll play it is. Because of the way and massive compound and -- in much harder to make up lost. And and they'll come out ahead but the surprise thing academic research -- -- -- volatility dot yup it's not only do you lose last. But over time. Counter intuitive they both left wrist to take the higher return. He get. -- you must -- read that and why you study did you hear that digit. That was hard to read or listen to it now 82 pages and oh my gosh it they talk of a sudden those snooze fest at -- I agree I agree I'd start -- -- 9 o'clock at night I'd be asleep by 930 that was a hard. Yet you have to have mr. academic bent but I I talked to the author. It much is your dinner these people -- And and he updated his numbers for me in paktia and and there's a -- thing. And to learn is that you're not paid the ticket more rests in part that impact from 68 to on eleven. You get 9% annualized India's union at 11% as well volatility stock. And you know you mentioned the year when the market was down -- these stocks are down 30% but the vast majority of them continued to pay their dividends and that. You know you I don't know -- UN but you must -- we have to be getting a lot of letters from readers who are saying -- you what do I do have got all my money sitting in the bankrupt got all my money sitting in a money market account. In am afraid to invest this is a viable alternative in my opinion. Oh absolutely I just talked fixed income in nature -- other Europe -- in future. -- sure it is capital preservation oriented client base you'd think he'd be recommending a lot of fun. Kate tick in them like dividend and. You don't remember how we were taught years ago of the Landry the older you get the -- should hold in bonds and a half I I still have people come to me with that they say well. You know on 62 now so why should only -- 38% stocks. What I tell people now as I say forget that throw that out that's the old way of managing money look at the beta on your overall portfolio. That's what should dictate your investing philosophy you tell your advisor what you want what kind of risk you're comfortable taking. And then they can design a beta portfolio around. You have to be patient you have to. But this title of beta testing the work you have apple -- awful cycle you have to uphold global and a beer market yet the. You sure do I want compliment you on your article and I've. I've posted it several places and you know it I'm sure to get a lot of a lot of hits. Thank you so much I appreciate that. All right and thank you very much for joining us that and Kate Smith joining us from kiplinger's magazine. That's a good -- he do -- what you read after homework assignment for two. On via the other -- countryside just throw it. It -- was thrilled at the -- act on feel like you're reaching a need to read it now because -- just listen to that that was great.