This will ensure EBITDA margin expansion, even if gold trades sideways. Newmont has also guided for a reduction in its all-in-sustaining-cost over the next three years. This will ensure stable production in the coming years. With 96 million ounces of reserves, Newmont holds impressive high-quality assets.
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To put things into perspective, Newmont expects to report a $400 million increase in free cash flow for every $100 increase in the price of gold. If gold remains in an uptrend, attractive dividend growth seems likely. Additionally, the stock offers a healthy dividend yield of 2.1%. NEM stock trades at an attractive forward price-earnings ratio of 19.7-times.
Therefor, I think now is a great time to remain invested in gold miners. Gold has been trending higher with fears around inflation, a recession, and geopolitical tensions. Newmont Corporation (NYSE: NEM) is an undervalued low-beta stock worth holding in a core portfolio. Accordingly, emerging markets will increasingly contribute to its growth over the next few years. As of 2022, the company reported 60% of its revenue from the U.S. However, the company expects to deliver growth above the industry average, even beyond this period.Īstra Zeneca is also well-diversified from a geographical perspective. An attractive pipeline of drugs will ensure that the company’s revenue growth remains strong.Ĭonsidering its pipeline, Astra Zeneca expects low double-digit revenue growth through 2025. In addition, more than 30 Phase 3 trials are due in 2023. Additionally, AZN stock offers an attractive dividend yield of 2.6%.įrom a business perspective, Astra Zeneca has a pipeline of 178 drugs in various stages of clinical development. First, the stock trades at an attractive forward price-earnings ratio of 20.2-times. Astra Zeneca (NASDAQ: AZN) is a top pick from the sector for two reasons. In general, bio-pharmaceutical stocks are low-volatility stocks. Thus, this is a mega-cap stock with ample flexibility for dividends and share repurchases.
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International markets are likely to remain the key growth driver for Walmart in the coming years.įrom the perspective of shareholder returns, Walmart reported operating cash flow of $29.1 billion and free cash flow of $12.2 billion. However, the company expects international net sales to increase by 6%. It’s worth noting that for FY24, Walmart has guided for consolidated net sales growth of 2.5% to 3%. With fears of recession, I expect policymakers to focus on boosting consumption spending. economy is driven by consumer spending, and retail sales are a key part of the consumption basket. Besides WMT stock’s low-beta status, there are a few other important reasons to like this top retailer.įirst, WMT stock offers a dividend yield of 1.5%, with a strong and stable growth outlook. Nevertheless, WMT stock is attractive, and in my view, the best pick among low-volatility stocks. Walmart’s (NYSE: WMT) stock has traded relatively sideways over the last 12 months. Let’s discuss three low-volatility stocks with healthy total return potential. This mix would be a stable investment strategy. The remaining exposure can be towards high-quality growth stocks. I would, however, recommend at least 50% exposure to blue-chip stocks. Of course, it’s important to create a diversified portfolio.
In addition, attractive valuations are a bonus, as total returns from these low-volatility stocks can be healthy over the next few years. Besides providing capital preservation, these stocks also offer a healthy dividend yield. In general, low-volatility stocks have a low beta and are blue-chip stocks. Therefore, having a portfolio based on a foundation of low-volatility stocks is important, for those who value capital preservation. Indeed, considering heightened recession possibilities, turbulence in the financial sector, and inflation, the markets might continue to exhibit volatility. However, it makes sense for investors to remain cautious. In all probability, the Fed will pause on rate hikes.
With another rate hike by the Fed, the markets remain in an uncertain zone.
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