Power Play: Income growth with large-caps

Person using an Apple iPhone
Mario Anzuoni | Reuters
Person using an Apple iPhone

The Dow and S&P 500 are positive for 2016, but the Nasdaq is still down about 2 percent following the sell-off in the first six weeks of the year.

Heartland Financial Chief Investment Officer Nancy Tengler tells CNBC's "Power Lunch" on Wednesday we will continue to experience periods of volatility, but investors can still grow their income with the right stocks.

Three of her favorite names now are Apple, Johnson & Johnson and 3M.

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"We expect large-cap, multinational earnings Q1 to be better than expected and expect to continue to see low double-digit dividend growth in 2016," Tengler said.

She also believes an accommodative Fed will be positive for large-caps.

"Fed policy is beneficial for global risky assets and as global concerns diminish, the global economy improves, also good for large U.S. multinationals and stocks," Tengler said.

Apple and 3M are higher during trading, while Johnson & Johnson is lower.