Up to date on Could twenty ninth, 2025 by Bob Ciura
On the earth of investing, volatility issues. Traders are reminded of this each time there’s a downturn within the broader market and particular person shares which can be extra risky than others expertise monumental swings in value.
Volatility is a proxy for threat; extra volatility usually means a riskier portfolio. The volatility of a safety or portfolio towards the imply is known as customary deviation.
Briefly, customary deviation is an investing metric that calculates the magnitude of a safety’s dispersion from its common value over a given time interval.
Because of this, we consider customary deviation is a vital monetary metric that buyers ought to familiarize themselves with, when buying particular person shares.
To that finish, we created a listing of low volatility shares. The checklist contains the 100 lowest customary deviation shares within the S&P 500 Index.
You’ll be able to obtain a spreadsheet of the 100 low volatility shares (together with different necessary monetary metrics like price-to-earnings ratios and dividend yields) by clicking on the hyperlink beneath:
This text will focus on customary deviation extra totally, and supply a dialogue of the 5 lowest-volatility dividend shares within the Positive Evaluation Analysis Database.
The desk of contents beneath permits for straightforward navigation.
Desk of Contents
Commonplace Deviation Overview
Commonplace deviation is a calculation that entails various inputs, equivalent to a safety’s closing share costs over a given time period, the imply worth over that point, and the variety of knowledge factors within the knowledge set.
Why this issues is as a result of buyers can make the most of customary deviation to get a greater understanding of a safety’s volatility, and subsequently its threat.
Importantly, low or excessive customary deviation measures the dimensions of the actions a safety might make from its common efficiency.
In a traditional distribution, a inventory’s value motion ought to fall inside one customary distribution of its imply value, roughly 68% of the time.
Moreover, the share value of the safety in query, ought to be inside two customary deviations of the imply, roughly 95% of the time.
To place this into perspective, assume a inventory has a imply value of $100, and an ordinary deviation of $10. In a traditional distribution, the inventory in query ought to shut between $80-$120 per share, roughly 95% of the time.
After all, this nonetheless leaves a 5% likelihood that the inventory will shut outdoors the vary of $80-$120. On this manner, buyers typically use customary deviation as a proxy for threat.
The traditional knowledge would recommend that low volatility shares ought to under-perform throughout market uptrends and outperform throughout downturns.
The next part discusses the 5 dividend-paying shares within the S&P 500 with the bottom customary deviation of day by day returns over the previous 5 years.
Low Volatility Inventory #5: Verizon Communications (VZ)
5-12 months Commonplace Deviation: 1.34%
Verizon Communications was created by a merger between Bell Atlantic Corp and GTE Corp in June 2000. Verizon is among the largest wi-fi carriers within the nation.
Wi-fi contributes three-quarters of all revenues, and broadband and cable providers account for a few quarter of gross sales. The corporate’s community covers ~300 million individuals and 98% of the U.S.
On April twenty second, 2025, Verizon reported first quarter outcomes for the interval ending March thirty first, 2025. For the quarter, income grew 1.5% to $33.5 billion, which topped estimates by $220 million.
Supply: Investor Presentation
Adjusted earnings-per-share of $1.19 in contrast favorably to $1.15 within the prior yr and was $0.04 forward of expectations.
For the quarter, Verizon had postpaid telephone internet losses of 289K, which compares to internet losses of 114K in the identical interval of final yr. Wi-fi retail postpaid telephone churn charge stays low at 0.90%.
Wi-fi income grew 2.7% to an industry-leading $20.8 billion whereas the Client phase elevated 2.6% to $17.2 billion.
Broadband totaled 339K internet new clients through the interval, ending what had been tenth consecutive quarters of at the least 375K internet provides.
Click on right here to obtain our most up-to-date Positive Evaluation report on VZ (preview of web page 1 of three proven beneath):
Low Volatility Inventory #4: Procter & Gamble (PG)
5-12 months Commonplace Deviation: 1.31%
Procter & Gamble is a shopper merchandise big that sells its merchandise in over 180 international locations.
Notable manufacturers embody Pampers, Luvs, Tide, Acquire, Bounty, Charmin, Puffs, Gillette, Head & Shoulders, Previous Spice, Daybreak, Febreze, Swiffer, Crest, Oral-B, Scope, Olay and lots of extra.
On April eighth, 2025, Procter & Gamble raised its dividend by 5%, from $1.0065 per quarter to $1.0568.
In late April, Procter & Gamble reported (4/24/25) monetary outcomes for the third quarter of fiscal 2025 (its fiscal yr ends June thirtieth).
Supply: Investor Presentation
Gross sales dipped -2% however its natural gross sales edged up 1% over final yr’s quarter, because of increased costs.
Core earnings-per-share grew 1%, from $1.52 to $1.54, beating the analysts’ consensus by $0.01. The agency gross sales amid sustained value hikes are a testomony to the energy of the manufacturers of Procter & Gamble.
Click on right here to obtain our most up-to-date Positive Evaluation report on PG (preview of web page 1 of three proven beneath):
Low Volatility Inventory #3: The Coca-Cola Firm (KO)
5-12 months Commonplace Deviation: 1.30%
Coca-Cola is the world’s largest beverage firm, because it owns or licenses greater than 500 distinctive non–alcoholic manufacturers. For the reason that firm’s founding in 1886, it has unfold to greater than 200 international locations worldwide.
Coca-Cola now has 30 billion-dollar manufacturers in its portfolio, which every generate at the least $1 billion in annual gross sales.
Supply: Investor Presentation
Coca-Cola posted first quarter earnings on April twenty ninth, 2025, and outcomes have been higher than anticipated. Adjusted earnings per-share got here to 73 cents, a penny forward of estimates.
Revenues have been off 2% year-on-year to $11.1 billion, pushed by forex headwinds, in addition to the impression of refranchising bottling operations. International unit case quantity was up 2% within the quarter, whereas natural revenues have been up 6%.
Click on right here to obtain our most up-to-date Positive Evaluation report on KO (preview of web page 1 of three proven beneath):
Low Volatility Inventory #2: Colgate-Palmolive (CL)
5-12 months Commonplace Deviation: 1.28%
Colgate-Palmolive was based in 1806 and has constructed a powerful and intensive portfolio of shopper manufacturers. It operates globally, promoting in most international locations around the globe.
About one-sixth of its income comes from Hill’s pet meals division, which has proven very robust development in recent times.
The opposite five-sixths of income comes from a mixture of cleansing and private care merchandise, with the corporate’s most recognizable manufacturers being Colgate (tooth care) and Palmolive (cleaning soap).
The corporate has structured itself into 4 models: Oral Care, Private Care, House Care, and Pet Diet.
Supply: Investor presentation
Colgate-Palmolive posted first quarter earnings on April twenty fifth, 2025, and outcomes have been higher than anticipated each the highest and backside strains. Adjusted earnings-per-share got here to 91 cents, which was a nickel forward of estimates.
Income was off greater than 3% year-over-year to $4.91 billion, which beat expectations by $50 million. Section revenue was up 12% in Europe, and 30% for the Hill’s Diet phase.
Web gross sales have been up 1.4% year-over-year on an natural foundation, together with a 0.4% damaging impression from decrease non-public label pet quantity. Foreign exchange translation was a 4.4% headwind to internet gross sales. Colgate expects internet gross sales to be up low-single digits, together with a low-single digit damaging impression from foreign exchange translation. Natural gross sales development is predicted to be +2% to +4% this yr.
Click on right here to obtain our most up-to-date Positive Evaluation report on CL (preview of web page 1 of three proven beneath):
Low Volatility Inventory #1: Johnson & Johnson (JNJ)
5-12 months Commonplace Deviation: 1.23%
Johnson & Johnson is a diversified well being care firm and a pacesetter within the space of modern medicines and medical units Johnson & Johnson was based in 1886.
On April fifteenth, 2025, Johnson & Johnson introduced that it was rising its quarterly dividend 4.8% to $1.30, extending the corporate’s dividend development streak to 63 consecutive years.
Supply: Investor Presentation
That very same day, Johnson & Johnson reported first quarter outcomes for the interval ending March thirty first, 2025. For the quarter, income grew 2.3% to $21.9 billion, which beat estimates by $330 million.
Adjusted earnings-per-share of $2.77 in comparison with $2.71 within the prior yr and was $0.19 greater than anticipated. Outcomes included changes associated to the prices of acquisitions.
Click on right here to obtain our most up-to-date Positive Evaluation report on JNJ (preview of web page 1 of three proven beneath):
Closing Ideas
Traders ought to take threat under consideration when buying particular person shares. In spite of everything, if two securities are in any other case comparable when it comes to anticipated returns however one presents a decrease customary deviation, the investor would seemingly see stronger returns from the low volatility inventory.
Commonplace deviation can assist buyers decide which securities will produce better deviation from the market common.
The 5 shares within the article not solely have low customary deviation, however in addition they supply enticing dividend yields and whole anticipated returns.
The next databases of dividend development shares may additionally be helpful for earnings buyers:
The Dividend Aristocrats Listing: dividend shares with 25+ years of consecutive dividend will increase
The Excessive Yield Dividend Aristocrats Listing is comprised of the 20 Dividend Aristocrats with the very best present yields.
The Dividend Achievers Listing is comprised of ~400 shares with 10+ years of consecutive dividend will increase.
The Dividend Kings Listing is much more unique than the Dividend Aristocrats. It’s comprised of 55 shares with 50+ years of consecutive dividend will increase.
The Excessive Yield Dividend Kings Listing is comprised of the 20 Dividend Kings with the very best present yields.
The Blue Chip Shares Listing: shares that qualify as Dividend Achievers, Dividend Aristocrats, and/or Dividend Kings
The Excessive Dividend Shares Listing: shares that attraction to buyers within the highest yields of 5% or extra.
The Month-to-month Dividend Shares Listing: shares that pay dividends each month, for 12 dividend funds per yr.
The Dividend Champions Listing: shares which have elevated their dividends for 25+ consecutive years.Notice: Not all Dividend Champions are Dividend Aristocrats as a result of Dividend Aristocrats have extra necessities like being in The S&P 500.
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