In this article, we are going to discuss the best low-risk dividend stocks to invest in.
Rising market volatility has pushed dividend-paying stocks back into focus. Investors often turn to these names when markets get rough. They tend to hold up better during downturns, and over time, they have also delivered a mix of steady income and capital growth that adds up across full market cycles.
A report from Ridgeworth Investments pointed out that dividend-paying stocks offer more than just income. They also support long-term growth. Since the 1930s, reinvested dividends have made up close to 50% of total equity returns. When stock prices fall, dividends can soften the blow. Over longer periods, higher-yielding stocks have produced stronger returns with much less risk than lower-yielding names.
The report also looked at the long-term performance of the largest 1,000 stocks by market value, grouped by dividend yield. Stocks in the higher-yield categories, specifically quintiles one through three, showed better returns with lower risk compared with stocks that offered little or no yield.
Another takeaway stood out. Dividend-paying stocks beat non-dividend payers in four of the past five decades, a stretch that included both strong bull markets and difficult downturns. Even in the periods when dividend payers lagged, the gap was small. Their underperformance was limited, especially when compared with the deeper drawdowns seen in stocks that paid no dividends at all.
With that said, here are the Best Low-Risk Dividend Stocks to Buy Now.
Photo by Dan Dennis on Unsplash
Our Methodology
To collect data for this article, we looked for dividend companies with strong histories and sound financials, and then shortlisted the ones with a beta of less than 1.0 over the past years, using monthly price data. Beta lower than 1.0 shows that these stocks are less volatile than the overall market. We also considered the 5-year average revenue growth of these companies as well. The following are the Best Low-Risk Dividend Stocks to Buy. The stocks are ranked according to their beta value.
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7. Huntington Bancshares Incorporated (NASDAQ:HBAN)
Beta (5Y Monthly): 0.97
5-Year Average Revenue Growth: 14.26%
Huntington Bancshares Incorporated (NASDAQ:HBAN) operates as a regional bank holding company. Through its main banking unit, Huntington National Bank, and related affiliates, it serves consumers as well as small and mid-sized businesses, corporations, municipalities, and other organizations.
On January 26, Truist analyst Brian Foran lifted his price recommendation on Huntington Bancshares Incorporated (NASDAQ:HBAN) Bancshares Incorporated (NASDAQ:HBAN) to $21 from $20. The analyst also reiterated a Buy rating after the bank posted a stronger-than-expected Q4. That said, the firm trimmed its FY26 EPS forecast by 7% to $1.70, pointing to a higher expense outlook as the main reason for the adjustment, according to the research note.
Separately, a January 22 Reuters report said Huntington expects its interest income to reach a record level in 2026. The bank is seeing faster loan growth and wider margins, helped by improving industry conditions. Borrowing activity has picked up across the banking sector as the U.S. Federal Reserve has started cutting rates, while easing deposit costs are also improving the profitability outlook.
Huntington now expects net interest income to grow between 10% and 13% for the full year on a standalone basis. The bank generated $6.06 billion in NII in 2025. It also agreed in October to acquire smaller rival Cadence Bank in a $7.4 billion deal. Once completed, the transaction is expected to contribute an additional $1.85 billion to $1.90 billion to full-year NII. On a standalone basis, Huntington sees average loan growth of 11% to 12% this year, with average deposits projected to rise between 8% and 9%.
6. Badger Meter, Inc. (NYSE:BMI)
Beta (5Y Monthly): 0.91
5-Year Average Revenue Growth: 15.54%
Badger Meter, Inc. (NYSE:BMI) is a global manufacturer and marketer of flow measurement, water quality, control, and related system solutions serving a wide range of end markets worldwide.
On January 29, Seaport Research analyst Scott Graham cut Badger Meter, Inc. (NYSE:BMI)’s price objective to $220 from $255. The analyst maintained a Buy rating. The adjustment follows a slower pace of sales growth in the first half of the year, though the firm noted that visibility around a second-half pickup has improved, according to the research note.
Speaking on the Q4 2025 earnings call, Chairman, President, and CEO Kenneth Bockhorst said the company finished the year with strong momentum. He pointed to a solid fourth quarter and another full year of record sales, profits, and cash generation. Demand for the cellular AMI offering remained healthy, while the integration of SmartCover into the BlueEdge smart water management platform continued to progress well. He also highlighted the PRASA AMI project win in Puerto Rico as an important step that strengthens the company’s competitive position and supports longer-term growth.
CFO and Treasurer Daniel Weltzien said fourth-quarter sales came in at $221 million, up 8% from the prior year, with base sales rising 2%. Operating margins edged up to 19.5% from 19.1%, while base operating earnings increased 9% year over year, pushing base operating margins to 20.5%. Gross margins also improved, climbing to 42.1% from 40.3% in the same quarter last year.
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