These 'strong buy' rated stocks with high dividend yields are expected to beat the market

Published Sat, Apr 25 202010:21 AM EDTUpdated Thu, Apr 30 202011:38 AM EDT

(This story is for CNBC Pro subscribers only.) As the fast-spreading coronavirus causes unprecedented disruption to society and wreaks havoc on the financial markets, investors need to find income somewhere. The stock market is tumbling and the economy is likely already in a deep recession from the shutdown of U.S. businesses during the COVID-19 quarantine. But certain healthy stocks with high dividends could be way to receive yield in a world of disappearing income. CNBC used S & P Global Market Intelligence to screen for stocks rated "strong buy" by Standard & Poor's equity analysts, that also have a dividend yield higher than the market's 2% yield. A strong buy means "total return is expected to outperform the total return of a relevant benchmark, by a wide margin over the coming 12 months, with shares rising in price on an absolute basis," according to S & P Capital IQ. So not only are these stocks paying a high and stable dividend, they are also poised to beat the market in S & P's view. Take a look at the list here. The list is well-represented with defensive stocks. The theory behind defensive stocks is that consumers will always pay for health related items like medications and hospital visits and will always buy staple goods like toothpaste and laundry detergent, even in tougher economic times. Coca-Cola, Pepsico, Conagra Brands and Tyson Foods are relatively insulated from the coronavirus weakness, as consumers stock up on food during the lock down. Plus, these stocks play a generous dividend. Similarly, health care stocks like CVS Health and Merck & Co. are safer in terms of the global pandemic. CVS has a dividend yield of 3.26% and Merck & Co. has a dividend of about 3%. Real estate and home improvement stocks make up a portion of the list. Prologis, which owns warehouses, and Alexandria Real Estate Equities, which owns medical laboratories among other assets, could be benefiting from the coronavirus crisis as companies need more space for storage and health research. Home Depot could be benefiting from people refinancing their mortgages in this low interest rate environment and putting the money back into their homes. Aerospace and defense companies Lockheed Martin and General Dynamics also offer bountiful payments to shareholders with a dividend yield of 2.55% and 3.37%, respectively.

An employee works on the production line of the Swire Coca-Cola Beverages Hubei Limited on March 24, 2020 in Wuhan, Hubei province, China.

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(This story is for CNBC Pro subscribers only.)

As the fast-spreading coronavirus causes unprecedented disruption to society and wreaks havoc on the financial markets, investors need to find income somewhere.

The stock market is tumbling and the economy is likely already in a deep recession from the shutdown of U.S. businesses during the COVID-19 quarantine. But certain healthy stocks with high dividends could be way to receive yield in a world of disappearing income.

CNBC used S&P Global Market Intelligence to screen for stocks rated "strong buy" by Standard & Poor's equity analysts, that also have a dividend yield higher than the market's 2% yield.

A strong buy means "total return is expected to outperform the total return of a relevant benchmark, by a wide margin over the coming 12 months, with shares rising in price on an absolute basis," according to S&P Capital IQ.

So not only are these stocks paying a high and stable dividend, they are also poised to beat the market in S&P's view. Take a look at the list here.