Investors looking to cushion their portfolios in the midst of the recent market volatility may be turning to dividend-paying stocks.
Equities are off to a rocky start so far this year thanks to uncertainty around President Donald Trump’s tariffs and the economy. On Wednesday, the market fell ahead of the tariff rollout, expected in the afternoon, and then recovered. Trump has said the levies will be reciprocal and will “start with all countries.”
Stocks with consistent dividends are often thought of as ballast in market storms, since the income generated can help offset any declines in the share price.
“Dividends can help reduce volatility in a time of greater uncertainty and geopolitical risks,” Morgan Stanley strategist Todd Castagno wrote in a note early last month. “In periods of slow growth, dividends become more important and make up a larger percentage of investors’ total returns.”
Moreover, many of the stocks are underappreciated and ended the first quarter on Monday offering significant upside to analysts’ price targets.
To find the dividend-paying stocks that Wall Street believes will move higher, CNBC screened for those that both yield more than the S&P 500′s yield of 1.37%, and have at least 30% upside to the average price target, according to FactSet. They also are rated a buy from 60% or more of the analysts covering them.
Source: https://www.cnbc.com/2025/04/02/these-defensive-dividend-stocks-are-loved-by-wall-street.html