Stocks broke with historical trends to end September higher, but October could be an especially volatile month. October trading is typically difficult for equities, even without accounting for the overhang of the November election. The month is normally the most inconsistent for stocks going back to 1950, with an average S & P 500 daily move of 1.3% in either direction, per FactSet data. October lived up to its reputation on Tuesday, with the major averages falling more than 1% on rising tensions in the Middle East . These moves come as all three major index’s begin October with sharp year-to-date gains. The S & P 500 and Nasdaq Composite are up more than 20% in 2024 through Monday’s close, while the Dow Jones Industrial Average has popped 12%. The major averages also ended September with solid gains that brought the Dow and S & P 500 to record levels. Against this backdrop, CNBC Pro screened for stocks that can ride out any volatility in the month ahead, with a history of producing steady income. We used the following criteria to find the names mentioned below: Stocks on the list have a market cap of at least $2 billion Shares maintain a dividend yield of between 5% and 10% Each stock has a beta of less than 1, indicating low volatility relative to the broader market AT & T made the list. The telecommunications stock has added more than 31% in 2024 through Monday’s close. What’s more, AT & T has a 5.1% dividend yield and a beta multiple of 0.57. Goldman Sachs listed the stock as a top pick among its telecommunications services coverage universe, as the firm expects AT & T to capitalize on strong wireless trends and potentially imitate a share buyback program. T YTD mountain AT & T stock. “Management commentary during conference season was broadly bullish for the company, and we sensed no downtick to the company’s view on wireless trends,” analyst James Schneider wrote in a Sept. 23 note. The company on Monday also announced plans to sell its roughly 70% stake in DirecTV for nearly $8 billion. Pfizer also made the cut. Shares have ticked up 0.5% in 2024, underperforming the broader market. PFE YTD mountain Pfizer stock. To be sure, the pharmaceutical giant last month posted positive results for a drug intended to treat a deadly condition seen in cancer patients that causes weight and appetite loss. The results were an encouraging step toward the treatment garnering Food and Drug Administration approval. Analysts are generally bullish on Pfizer, with a consensus buy rating on the stock, per LSEG. The average price target on shares implies upside of 15%. Other names on the list include Crown Castle and shipping giant UPS .
