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2026 Low Beta Stocks List | The 100 Lowest Beta S&P 500 Stocks


Updated on April 23rd, 2026 by Bob Ciura

In the world of investing, volatility matters. Investors are reminded of this every time there is a downturn in the broader market and individual stocks that are more volatile than others experience enormous swings in price.

Volatility is a proxy for risk; more volatility generally means a riskier portfolio. The volatility of a security or portfolio against a benchmark is called Beta.

In short, Beta is measured via a formula that calculates the price risk of a security or portfolio against a benchmark, which is typically the broader market as measured by the S&P 500.

Here’s how to read stock betas:

Interestingly, low beta stocks have historically outperformed the market… But more on that later.

You can download a spreadsheet of the 100 lowest beta S&P stocks (along with important financial metrics like price-to-earnings ratios and dividend yields) below:

 

Click here to instantly download your free spreadsheet of all 100 Lowest Beta Stocks In The S&P 500 now, along with important investing metrics.

This article will discuss beta more thoroughly, why low-beta stocks tend to outperform, and provide a discussion of the 5 lowest-beta dividend stocks in the Sure Analysis Research Database.

The table of contents below allows for easy navigation.

Table of Contents

The Evidence for Low Beta Stocks Outperformance

Beta is helpful in understanding the overall price risk level for investors during market downturns in particular. The lower the Beta value, the less volatility the stock or portfolio should exhibit against the benchmark.

This is beneficial for investors for obvious reasons, particularly those that are close to or already in retirement, as drawdowns should be relatively limited against the benchmark.

Importantly, low or high Beta simply measures the size of the moves a security makes; it does not mean necessarily that the price of the security stays nearly constant.

Securities can be low Beta and still be caught in long-term downtrends, so this is simply one more tool investors can use when building a portfolio.

The conventional wisdom would suggest that lower Beta stocks should underperform the broader markets during uptrends and outperform during downtrends, offering investors lower prospective returns in exchange for lower risk.

However, history would suggest that simply isn’t the case.

Indeed, this paper from Harvard Business School suggests that not only do low Beta stocks not underperform the broader market over time – including all market conditions – they actually outperform.

A long-term study wherein the stocks with the lowest 30% of Beta scores in the US were pitted against stocks with the highest 30% of Beta scores suggested that low Beta stocks outperform by several percentage points annually.

Over time, this sort of outperformance can mean the difference between a comfortable retirement and having to continue working.

While low Beta stocks aren’t a panacea, the case for their outperformance over time – and with lower risk – is quite compelling.

How To Calculate Beta

The formula to calculate a security’s Beta is fairly straightforward. The result, expressed as a number, shows the security’s tendency to move with the benchmark.

For example, a Beta value of 1.0 means that the security in question should move in lockstep with the benchmark. A Beta of 2.0 means that moves in the security should be twice as large in magnitude as the benchmark and in the same direction, while a negative Beta means that movements in the security and benchmark tend to move in opposite directions or are negatively correlated.

Related: The S&P 500 Stock With Negative Beta.

In other words, negatively correlated securities would be expected to rise when the overall market falls, or vice versa. A small value of Beta (something less than 1.0) indicates a stock that moves in the same direction as the benchmark, but with smaller relative changes.

Here’s a look at the formula:

Beta Formula

The numerator is the covariance of the asset in question with the market, while the denominator is the variance of the market. These complicated-sounding variables aren’t actually that difficult to compute – especially in Excel.

Additionally, Beta can also be calculated as the correlation coefficient of the security in question and the market, multiplied by the security’s standard deviation divided by the market’s standard deviation.

Finally, there’s a greatly simplified way to calculate Beta by manipulating the capital asset pricing model formula (more on Beta and the capital asset pricing model later in this article).

Here’s an example of the data you’ll need to calculate Beta:

To show how to use these variables to do the calculation of Beta, we’ll assume a risk-free rate of 2%, our stock’s rate of return of 7% and the benchmark’s rate of return of 8%.

You start by subtracting the risk-free rate of return from both the security in question and the benchmark. In this case, our asset’s rate of return net of the risk-free rate would be 5% (7% – 2%).

The same calculation for the benchmark would yield 6% (8% – 2%).

These two numbers – 5% and 6%, respectively – are the numerator and denominator for the Beta formula. Five divided by six yields a value of 0.83, and that is the Beta for this hypothetical security.

On average, we’d expect an asset with this Beta value to be 83% as volatile as the benchmark.

Thinking about it another way, this asset should be about 17% less volatile than the benchmark while still having its expected returns correlated in the same direction.

Beta & The Capital Asset Pricing Model (CAPM)

The Capital Asset Pricing Model, or CAPM, is a common investing formula that utilizes the Beta calculation to account for the time value of money as well as the risk-adjusted returns expected for a particular asset.

Beta is an essential component of the CAPM because without it, riskier securities would appear more favorable to prospective investors. Their risk wouldn’t be accounted for in the calculation.

The CAPM formula is as follows:

CAPM Formula

The variables are defined as:

The risk-free rate is the same as in the Beta formula, while the Beta that you’ve already calculated is simply placed into the CAPM formula. The expected return of the market (or benchmark) is placed into the parentheses with the market risk premium, which is also from the Beta formula. This is the expected benchmark’s return minus the risk-free rate.

To continue our example, here is how the CAPM actually works:

ER = 2% + 0.83(8% – 2%)

In this case, our security has an expected return of 6.98% against an expected benchmark return of 8%. That may be okay depending upon the investor’s goals as the security in question should experience less volatility than the market thanks to its Beta of less than 1.

While the CAPM certainly isn’t perfect, it is relatively easy to calculate and gives investors a means of comparison between two investment alternatives.

Now, we’ll take a look at five stocks that not only offer investors low Beta scores, but attractive prospective returns as well.

Analysis On The Top 5 Low Beta Stocks

The following 5 low beta stocks have the lowest Beta values, in ascending order from highest to lowest, that we currently cover in the Sure Analysis Research Database.

They also pay dividends to shareholders.

5. WEC Energy Group (WEC)

WEC Energy Group, Inc. provides electric, gas & steam service to customers in Wisconsin and gas service to customers in Illinois, Minnesota and Michigan.

In total, WEC Energy Group provides services to 1.6 million customers. The company has also made several large investments into non-utility wind projects over the past few years.

WEC Energy Group has a five-year capital plan that includes investment of 1,800 megawatts of wind, solar and battery storage that will be added to the company’s regulated asset base in Wisconsin.

On December 4th, 2025, WEC Energy Group announced a 6.7% increase in its quarterly dividend to $0.9525.

On February 5th, 2026, WEC Energy Group released fourth quarter and full year results. For the quarter, revenue increased 11.3% to $2.54 billion, which topped estimates by $347 million.

Adjusted earnings-per-share of $1.42 was $0.03 better than expected. For the year, revenue grew 14% to $9.8 billion while adjusted earnings-per-share totaled $5.27. GAAP EPS was $4.81.

Click here to download our most recent Sure Analysis report on WEC (preview of page 1 of 3 shown below):

4. American Electric Power (AEP)

American Electric Power Company, Inc. (AEP) is one of the largest regulated electric utilities in the United States.

It provides electricity generation, transmission, and distribution services to more than 5 million customers across 11 states. AEP operates approximately 40,000 miles of transmission lines, one of the nation’s largest networks.

The company’s diverse energy portfolio includes natural gas, renewables (wind and solar), coal, and nuclear assets. AEP serves customers in Arkansas, Indiana, Kentucky, Louisiana, Michigan, Ohio, Oklahoma, Texas, Virginia, West
Virginia, and Tennessee.

On February 12, 2026, American Electric Power Company, Inc. reported its fourth quarter and full-year 2025 financial results, exceeding expectations.

Fourth-quarter GAAP earnings were $582 million, or $1.09 per share, with operating EPS of $1.19 topping the $1.15 consensus, and revenue of $5.314 billion beating expectations of roughly $4.94 billion, reflecting strong performance across the regulated utility footprint.

For the full year, operating EPS reached $5.97, above the top end of guidance of $5.75 to $5.95.

Click here to download our most recent Sure Analysis report on AEP (preview of page 1 of 3 shown below):

3. Church & Dwight (CHD)

Church & Dwight is a diversified consumer staples company. It manufactures and distributes products under several well-known names like Arm & Hammer, Trojan, OxiClean, Spinbrush, First Response, Waterpik, Nair, Orajel, and XTRA.

Church & Dwight has paid quarterly dividends to shareholders for more than 120 consecutive years.

Church & Dwight posted fourth quarter and full-year earnings on January 30th, 2026, and results were mixed. Revenue was in line with consensus at $1.64 billion, but rose 3.8% year-over-year.

Earnings came to 86 cents per share on an adjusted basis, which beat estimates by three cents.

Organic sales rose 0.7%, but fell fractionally in the US. Adjusted gross margin was 45.5% of revenue, which was up 90 basis points year-over-year.

The gain was due primarily to productivity gains, higher volumes, and business and acquisition mix.

These were partially offset by inflation and tariff costs. Cash from operations came to $363 million, which was 24% better than the same period a year ago.

Management boosted the dividend for 2026, at a new payout of $1.23 per share annually. That was the 30th consecutive year of dividend increases.

Click here to download our most recent Sure Analysis report on CHD (preview of page 1 of 3 shown below):

 

2. Altria Group (MO)

Altria is a tobacco stock that sells cigarettes, chewing tobacco, cigars, e-cigarettes, and more under a variety of brands, including Marlboro, Skoal, and Copenhagen, among others.

This is a period of transition for Altria. The decline in the U.S. smoking rate continues. In response, Altria has invested heavily in new products that appeal to changing consumer preferences, as the smoke-free category continues to grow.

The company also has a 35% investment stake in e-cigarette maker JUUL, and a 45% stake in the Canadian cannabis producer Cronos Group (CRON).

On January 28, 2026, Altria Group, Inc. reported its 2025 fourth-quarter and full-year results. The company generated adjusted diluted EPS of $5.42 for 2025, a 4.4% increase versus 2024.

EPS growth was supported by higher adjusted operating companies income, share repurchases that reduced the share count, and a lower adjusted tax rate.

The smokable products segment remained the primary profit engine, producing over $11 billion in adjusted operating companies income with margins expanding 1.8 percentage points to 63.4%.

Margin expansion occurred even as Marlboro’s retail share slipped below 40% and domestic cigarette volumes declined 10% for the year. The oral tobacco segment also contributed modestly to growth, with adjusted OCI up 1.3%.

Looking to 2026, Altria projected adjusted diluted EPS of $5.56 to $5.72, implying 2.5% to 5.5% year-over-year growth.

Click here to download our most recent Sure Analysis report on Altria (preview of page 1 of 3 shown below):

1. Exelon Corporation (EXC)

Exelon Corporation is a utility services holding company that has operations in 48 U.S. states, the District of Columbia and Canada.

The company’s subsidiaries include Commonwealth Edison, PECO Energy, Baltimore Gas & Electric, Pepco, Delmarva Power, and Atlantic City Electric. The company supplies electricity to nearly 9 million customers and provides gas to 1.3 million customers.

Exelon Corporation has 20,000 employees and generates annual sales of ~$24 billion.

On February 12th, 2026, Exelon Corporation increased its quarterly dividend 5.0% to $0.42, marking the fourth dividend increase since spinning off Constellation Energy (CEG).

That same day, Exelon Corporation announced fourth quarter and full year results. For the quarter, revenue decreased 1.1% to $5.4 billion, which was $80 million below estimates.

Adjusted earnings-per-share of $0.59 compared unfavorably to $0.64 in the prior year, but beat estimates by $0.04. For the year, revenue grew 5.3% to $24.3 billion while adjusted earnings-per-share of $2.77 compared to $2.50 in 2024.

For the quarter, ComEd’s net income grew 0.4% due to higher distribution and transmission rate bases.

Exelon Corporation provided a forward outlook as well. The company expects EPS to grow at 5% to 7% annually through 2029.

Click here to download our most recent Sure Analysis report on EXC (preview of page 1 of 3 shown below):

Final Thoughts

Investors must take risk into account when selecting from prospective investments.

After all, if two securities are otherwise similar in terms of expected returns but one offers a much lower Beta, the investor would do well to select the low Beta security as they may offer better risk-adjusted returns.

Using Beta can help investors determine which securities will produce more volatility than the broader market and which ones may help diversify a portfolio, such as the ones listed here.

The five stocks we’ve looked at not only offer low Beta scores, but they also offer attractive dividend yields.

Sifting through the immense number of stocks available for purchase to investors using criteria like these can help investors find the best stocks to suit their needs.

Additional Reading

At Sure Dividend, we often advocate for investing in companies with a high probability of increasing their dividends each and every year.

If that strategy appeals to you, it may be useful to browse through the following databases of dividend growth stocks:

Thanks for reading this article. Please send any feedback, corrections, or questions to support@suredividend.com.



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