The stock market is experiencing increased volatility due to inflation fears, geopolitical uncertainty and changing interest rate expectations. Below, we highlight four undervalued stocks that stand out for their ability to weather today’s volatility. All four stocks have outperformed the S&P 500 year-to-date while paying dividends that protect portfolios during withdrawals.
As equity markets experience increased volatility in early 2026, investors are increasingly turning to stocks that combine attractive dividend income with defensive business models and strong year-to-date momentum.
Betterware de México (NYSE:), Spectrum Brands (NYSE:), Sirius XM (NASDAQ:) and Kinetik Holdings (NYSE:) all fit that bill. Each operates in a distinct area of the economy, offers some degree of defensive or contracted cash flow, and pays a dividend that can help smooth returns during periods of volatility.
Below is a closer look at why they deserve a place in a volatility-resistant portfolio.
1. Betterware From Mexico
Current price: $17.09
Fair value estimate: $27.55 (+61.2% increase)
Market capitalization: $633.9 million
Despite the recent market boost, Betterware De Mexico has returned +20.3% year-to-date, outperforming most of its peers. The Mexico-based specialty retailer’s core business, which covers home organization and personal care, has proven defensive as demand remains steady even as consumers tighten their belts.
The company supports this resilience with a solid dividend yield of 6.38% and a recent payout of $1.11 per share, making it a compelling choice for income seekers.
Source: InvestPro
What sets BWMX apart is its valuation story: the current price of $17.09 sits well below its fair value upside of 61.2% and analysts’ upside target of 74.5%. This is a rare combination of dynamism and deep value.
2. Spectrum Marks
Current price: $71.94
Fair value estimate: $113.36 (+57.6% increase)
Market capitalization: $1.67 billion
Spectrum Brands, another star, has climbed +21.8% since the start of the year, but the stock hardly seems “liked”. The household and personal products company’s diverse customer base…
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