CNBC Stock Blog

In Volatile Market Buy Defensive Dividend Payers: Strategist

Tony Zabiegala doesn't want his clients up at night worrying about market volatility.

So to help them sleep well, the managing partner at Strategic Wealth Partners advises them to buy defensive, dividend-paying stocks, he told CNBC Monday.

"We feel that defensive stocks that are going to pay a nice healthy dividend will be a big part of total returns over the next several years," he said. That's why Zabiegala's picks include  Bristol-Myers , Altria and Duke Energy .

"The thing these companies have in common is the healthy dividend. They have been outperforming the rate of inflation," he said.

In the same interview, Dan McMahon, director of equity trading at Raymond James, said this is "one of the strongest earnings seasons on record in recent history." He's "cautiously optimistic" going forward because the "market is being driven and directed by macro events in Europe and Washington D.C."

McMahon's picks are three Standard & Poor's sectors: S&P 500 Technology, S&P 500 Energy and S&P 500 Financial.

Why the underperforming financial sector? These stocks have been beaten down, but still provide a good return, he said.

"This earnings season, most [financials stocks] have beat analyst estimates," McMahon said. "So it seems that, absent any debacles, people are growing a lot more comfortable owning them and we think we’ll see some loan growth."

for a different view of investing in financial stocks.


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Disclosure information was not available for Dan McMahon, Tony Zabiegala or their companies.