As the economic data for 2015 is trickling in, the International Monetary Fund projects U.S. economic growth to exceed 3% in 2015. This compares favorably with the 2.4% growth recorded in 2014.

Fueled by stronger consumer spending, improving job scenario and declining oil prices, 2015 seems to hold significant opportunities. Contributing to this optimism are the stock market indices – the S&P 500 and Dow Jones Industrial Average – which are reaching uncharted territories almost daily.

Then, against the rosy backdrop, why should investors worry about protecting their stock portfolio?

Well, just because the U.S. economy is doing well does not mean that stocks will run in step. We need to keep in mind that the performance of a stock market depends on how strong the companies are. Roughly half of all U.S. companies earn a major chunk of their revenue from outside the country.

So even while the U.S. is showing signs of strength, continued global economic challenges could have a detrimental impact on the nation’s stock market. Some of the biggest global economies of the world like China, the Eurozone, Japan and Russia, are in trouble, with the Eurozone and Russia on the brink of a recession.

A slowing global economy could thus translate into sluggish sales and fears of a stock market correction in the U.S. Moreover, as the Fed is expected to raise interest rates in mid-2015, it could have a negative impact on the broader economy and, by extension, the U.S. stock market.

The Defensive Strategy

With the U.S. stock market beginning to show signs of vulnerability, we feel it's time to start playing defensive. Among other strategies that investors can undertake to protect their portfolio from an eventual stock market correction is venturing into low beta stocks.

Beta is essentially a measure of how volatile a stock is relative to the broader market. Theoretically, beta of the overall market – often represented by the S&P 500 – is 1, so a stock with a beta of 0.5, for example, is half as volatile as the market. Thus, when investors are trying to defend their portfolio against a possible market correction, they can opt for low beta stocks as theoretically, their value should go down less when the market sees a correction.

3 Low-Beta Stocks to Consider

Here we have hand-picked three low-beta stocks that also provide generous dividend yields that can help insulate your portfolio against stock market volatility:
 

Avista Corp. (AVA - Snapshot Report)

Beta: 0.49
Dividend Yield: 4.01%

Avista Corp. is an energy company involved in the production, transmission and distribution of energy as well as other energy-related businesses. In Feb 2015, the company increased its quarterly dividend to 33 cents per share, marking the 13th consecutive year of a dividend hike.

This Zacks Rank #2 (Buy) company focuses on following a systematic capital investment program which we believe will continue to support its future dividend hikes and maximize shareholder value.

Chesapeake Utilities Corp. (CPK - Snapshot Report)

Beta: 0.45
Dividend Yield: 2.26%

Chesapeake Utilities is a diversified energy company engaged primarily in regulated energy services which provides it with a stable earnings stream. Chesapeake Utilities has paid a cash dividend to common stock shareholders for 54 consecutive years.

This Zacks Rank #2 stock raised the quarterly dividend by 5.2% in May 2014, which reaffirms our confidence in the sustainable long-term earnings growth of the company.

Quest Diagnostics Inc. (DGX - Analyst Report)

Beta: 0.67
Dividend Yield: 1.8%

Madison, NJ-based Quest Diagnostics is one of the largest providers of commercial laboratory services in North America. This company is greatly benefiting from recent policy changes and incentives that are encouraging the trend of outpatient care. Sporting a Zacks Rank #2, Quest Diagnostics has an impressive 5-year annual dividend growth rate of 26.4%.

In Jan 2015, the company hiked the quarterly dividend by 15%, to 38 cents per share, payable in Apr 2015. This represents the fourth dividend increase since 2011. Based on decent growth and steady dividends, shares of the company gained almost 27% in 2014.

Bottom Line

Through solid dividends and low betas, it is possible for income investors to earn strong yields in the stock market with relatively low risk. These 3 stocks offer just that.