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Where Delphi's Scott Black is putting his money

Mildly constructive for 2015: Scott Black

Despite the fact that the market is "slightly overvalued," U.S. stocks are the place to be right now, Delphi Management President Scott Black said Friday on CNBC.

"I'm mildly constructive for the rest of the year," Black said in an interview with "Power Lunch. "

First, the 10-year Treasury also doesn't offer competition, he said. Then there are the international markets.

"If you look at Europe and emerging markets, those aren't really places to go at this point because the global demand is weakening and the United States really is the star performer amongst the major economies."

He's sticking by the prediction he made earlier this year that the U.S. market will be up 8 percent in 2015, plus a 2 percent dividend yield.

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As for those who think Europe is a better bet, Black said he does a lot of bottom up screening of multiples. When he looked at the FTSE 500, for example, he found that there are not that many cheap PEs [price-earnings multiple] out there.

On top of that, U.S. dollar-denominated investors have currency risk because of the weak euro and strong dollar, Black said.

Where Black is putting his money

Black holds five names in the Nasaq 100: Comcast, Checkpoint Systems, Liberty Global, Express Scripts and SanDisk.

Comcast "we've owned forever," he said. "On a valuation standpoint, it's dirt cheap." He noted that margins are improving, NBC is doing better and the company is generating a lot of free cash.

The other media company on his list, Liberty Global, has roughly 27 million subscribers in Europe and has revenues growing at a 4-5 percent pace, he pointed out. It recently acquired Dutch cable operator Ziggo and is strong in the United Kingdom, he said.

"It's selling somewhere about 10 times this year's forthcoming enterprise value but with the kind of growth that is ahead of us and the synergies from Ziggo…. I think it is a very good deal overall," said Black.

Dividend plays

Trend-less and volatile market: Pro

Meanwhile, another pro, Hugh Johnson, believes the market is 4 percent to 5 percent overvalued right now, and is anticipating a "trendless and volatile" market for the rest of the year.

He believes the market will ultimately end up with about a 5 percent return for the year. That's why he would look for good dividend plays.

"Dividends are going to count in the kind of environment we're describing, which is a mid-single-digit environment," said the chairman and chief investment officer of Hugh Johnson Advisors. "Dividends are really a good cushion."

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With valuations in traditional dividend sectors, such as utilities, very stretched, he'd look at technology names. For example, both Cisco and Microsoft have very generous dividend yields and are a "good buy" in this environment, he said.

Disclosures: Comcast is the owner of NBCUniversal, the parent company of CNBC and Hugh Johnson and his family do not own Cisco or Microsoft.