With the major indexes touching all-time highs and signs of froth appearing in segments of the market, some investors might be searching for some steadier stocks to hedge their portfolio.
On “Mad Money” this week, CNBC’s Jim Cramer warned that the stock market is on a “highway to the danger zone” because of the record highs and signs of speculation in certain parts of the market, like popular Reddit trades and cryptocurrencies.
“So you’ve gotta be careful when it gets this frothy, but, and this is crucial, I am not saying get out now,” Cramer said. “I am not saying sell everything. I am simply begging you to exercise some discipline and sell something because nobody ever got hurt taking a profit.”
One option that still leaves room for upside and income generation are less volatile dividend stocks. The list below includes stocks with dividend yields higher than the overall market’s payout, a positive year-to-date move for their shares and significant potential upside to their stocks according to analysts.
The names also have a beta below 1, meaning that they tend to be less correlated with the overall market and could theoretically help limit losses during a market downturn.
Originally published at CNBC