The United States fired its next shot in China trade war. President Trump’s administration is preparing another gargantuan round of tariffs on Chinese imports, which would perhaps be a concrete move toward a full-fledged trade war with China.

Intensifying trade tensions between the United States and China may also force the equity market to take a dive after years of growth, while corporates are fretting over the risks a trade war will pose to their profits.

With the markets witnessing a healthy pullback after a strong run, investing in stocks that provide excellent risk-adjusted returns seems judicious.

5 of the Best Ultra-Safe Stocks to Buy Now

As prospects of a fresh trade war loom large, it seems Wall Street will most likely face a bloodbath. Investors, thus, should build a strategy on low-risk assets and a combination of parameters that leads to better returns. The best way to go about doing this is by creating a portfolio of low-beta stocks, which are inherently less volatile than the markets they trade in. In this case, a low beta ranges from 0 to 1.

These stocks are also dividend payers and are domestic producers of goods. Dividend-paying stocks boast immense financial strength and are immune to market vagaries. Such stocks reflect solid financial structure, healthy underlying fundamentals and better quality business. To top it, due to their limited international exposure, they offer higher protection than their large- and mid-cap counterparts against any economic upheaval.

We have, thus, selected five stocks that flaunt a Zacks Rank #1 (Strong Buy) or 2 (Buy).

BRT Apartments Corp. (BRT - Free Report) is a real estate investment trust that owns, operates and develops multi-family properties. The stock currently has a Zacks Rank 1 and a beta of 0.43. The company has a dividend yield of 5.9%, while its five-year average dividend yield is 1.1%.

BRT Apartments’ expected earnings growth for the current year is a solid 58.2%. In the last 60 days, one earnings estimate moved north, while none moved south for the current year. The Zacks Consensus Estimate for earnings rose 15.2% in the same period.

Computer Programs and Systems, Inc. (CPSI - Free Report) provides healthcare information technology solutions and services in the United States. The stock currently has a Zacks Rank 1 and a beta of 0.1. The company has a dividend yield of 1.2%, while its five-year average dividend yield is 3.9%.

Computer Programs and Systems’ expected earnings growth for the current year is a superb 31.1%. In the last 60 days, 4 earnings estimates moved north, while none moved south for the current year. The Zacks Consensus Estimate for earnings increased 4% in the same period.

Community Trust Bancorp, Inc. (CTBI - Free Report) operates as the bank holding company for Community Trust Bank, Inc. that provides commercial and personal banking services to small and mid-sized communities. The stock currently has a Zacks Rank 2 and a beta of 0.7. The company has a dividend yield of 2.5%, while its five-year average dividend yield is 3.2%.

Community Trust Bancorp’s expected earnings growth for the current year is an encouraging 22.5%. In the last 60 days, one earnings estimate moved up, while none moved down for the current year. The Zacks Consensus Estimate for earnings advanced 1.8% in the same period. 

Gladstone Commercial Corporation (GOOD - Free Report) is a real estate investment trust focused on acquiring, owning, and operating net leased industrial and office properties across the United States. The stock currently has a Zacks Rank 2 and a beta of 0.78. The company has a dividend yield of 7.6%, while its five-year average dividend yield is 8.4%.

Gladstone Commercial’s expected earnings growth for the current year is 4.6%. In the last 60 days, two earnings estimates moved north, while none moved south for the current year. The Zacks Consensus Estimate for earnings rose 0.6% in the same period.

Shoe Carnival, Inc. (SCVL - Free Report) operates as a family footwear retailer in the United States. The stock currently has a Zacks Rank 1 and a beta of 0.85. The company has a dividend yield of 0.1%, while its five-year average dividend yield is 1.1%.

Shoe Carnival’s expected earnings growth for the current year is a promising 36.2%. In the last 60 days, two earnings estimates moved north, while none moved south for the current year. The Zacks Consensus Estimate for earnings jumped 5.7% in the same period.