Dividend stocks as a safe haven
Starting last week, import tariffs ranging from 10% to 12.5% have been introduced on 60 countries, covering 99.4% of U.S. imports. Despite this, certain dividend stocks are showing resilience and stability. Specifically, five companies with yields between 4.9% and 11.5% have emerged as reliable options. These stocks are characterized by low volatility, as indicated by betas below 1, making them safer alternatives during times of market uncertainty and economic instability.
First Interstate BancSystem: Calm in a storm
First Interstate BancSystem (FIBK) is a standout in the market, offering investors a 4.9% yield and a beta of 0.6 for the one-year period and 0.8 for the five-year period. These figures show that FIBK is less volatile compared to both the S&P 500 and the overall financial sector. The company operates under the brand name First Interstate Bank, with 271 banking locations across ten states in the Midwest and Pacific Northwest. It provides a comprehensive suite of banking services, including personal banking products like checking and savings accounts, credit cards, and mortgages. Business customers benefit from commercial and SBA loan offerings, while the company also delivers wealth management and treasury solutions to its clients.
Despite facing certain short-term issues, like falling loan volumes and increased payoff activity, the company’s long-term outlook looks positive. A key indicator of this is its expanding net interest margin. FIBK has also focused on creating shareholder value through its aggressive buyback strategy. Since the second half of 2025, the company has repurchased roughly 8% of its outstanding shares. Additionally, FIBK has recently received approval for an additional $150 million in buybacks, increasing the total program authorization to $450 million. The big question now is whether these improved financial results will lead to higher dividend payouts for shareholders.
Sabra Health Care REIT and Getty Realty: Steady returns in a volatile market
Sabra Health Care REIT (SBRA) is another strong contender in the high-yield, low-volatility space. With a 5.4% yield and a one-year beta of only 0.2, it stands out as one of the most stable stocks in its industry. As a healthcare-focused real estate investment trust (REIT), Sabra manages more than 360 properties in the United States and Canada. The bulk of its portfolio includes skilled nursing and transitional care facilities, which generate nearly half of its annualized cash net operating income (NOI). The company has recently made strategic moves to enhance its performance, such as transitioning 26 properties from Avamere to Cascadia, a high-quality tenant. This shift resulted in a nearly 30% increase in rental income, showcasing the company’s commitment to steady growth and strong tenant relationships.
Getty Realty (GTY) is another stable investment option, offering a 5.5% yield and a consistent performance history. The company manages over 1,160 freestanding retail properties across 44 states and the District of Columbia. These properties are leased to businesses like convenience stores, car washes, auto service centers, and gas stations, which benefit from high foot traffic. The tenant base is carefully curated to include only those with solid credit ratings, ensuring a reliable and uninterrupted cash flow. Getty’s dividends are well-supported, with current payouts accounting for less than 80% of FFO estimates. The company’s financial stability is reflected in its beta, which is close to zero for the one-year period and under 0.8 for the five-year period. Such low volatility makes Getty an attractive defensive stock for investors looking to reduce risk during market fluctuations.
Together, these companies present a compelling case for investors seeking both steady income and stability. Whether it is through consistent dividends or low volatility, these stocks are demonstrating their ability to weather the current economic climate. As trade tensions, Fed decisions, and geopolitical events continue to shape the financial landscape, these well-managed companies offer a reliable anchor amidst the uncertainty.