These rock solid dividend stocks could help investors ride out the market turmoil

Published Sun, Jun 14 20208:07 AM EDT

(This story is for CNBC Pro subscribers only.) Investors might have thought 1,000 points swings in the Dow were a thing of the past, but this week proved market volatility still reigns. Investors might look to stable stocks with high dividends as a source of yield during the market turmoil. CNBC used S & P Global Market Intelligence to screen for rock solid dividend stocks. The companies also have low relative debt and a good Piotroski score. A Piotroski score is a measure of financial stability, on a scale of 0 to 9, that is used to find value stocks. It includes points for measures like net profit, improvements in the ratio of long term debt, and operating margin. Net-debt-to-EBITDA is a measure a company's leverage divided by its cash flow. All the listed stocks are members of the S & P 500 and have a dividend yield above 2%, which is higher than the yield of the S & P. Companies with a Piotroski score of 7 or better and a debt-to-EBITDA ratio of less than 3 made the cut. Take a look at CNBC's list here. The list spread across many sectors from semiconductors to retailers to health care giants. Chip stock Qualcomm has one of the highest Piotroski scores and a generous 2.86% dividend. Qualcomm is the leading maker of 5G chips and has a lot of related patents, which makes it positioned for outperformance when 5G is rolled out as soon as this year. Retailer Target also makes the list. With a 2.2% dividend, the big box retailer gives investors yield as well as promise of growth. Target was a clear beneficiary of the coronavirus pandemic as millions of Americans stocked up on food and household items. Target said its same-stores sales rose more than 10% in the first quarter and digital sales grew a whopping 141%. Target raised its dividend last week for the 49th straight year. Hewlett Packard Enterprise has the highest dividend on the list at 4.49%. Fertilizer company CF Industries Holdings and appliance retailer Whirlpool also have hefty dividends of 3.89% and 3.57%, respectively. Lockheed Martin and Air Products and Chemicals are two stocks on the list that stood up during the coronavirus pandemic. Both companies are in the green for the year. Drugmaker Merck & Co. has a dividend yield of 2.98%. Merck is one of the many pharmaceutical companies working to develop a potential vaccine against the coronavirus. Cisco Systems , Sysco , Automatic Data Processing , Flowserve and Illinois Tool Works also make the list of rock solid dividend stocks with strong financials.

A shopper is seen in a Target store in the Brooklyn borough of New York.

Brendan McDermid | Reuters

(This story is for CNBC Pro subscribers only.)

Investors might have thought 1,000 points swings in the Dow were a thing of the past, but this week proved market volatility still reigns.

Investors might look to stable stocks with high dividends as a source of yield during the market turmoil.

CNBC used S&P Global Market Intelligence to screen for rock solid dividend stocks. The companies also have low relative debt and a good Piotroski score.

A Piotroski score is a measure of financial stability, on a scale of 0 to 9, that is used to find value stocks. It includes points for measures like net profit, improvements in the ratio of long term debt, and operating margin. Net-debt-to-EBITDA is a measure a company's leverage divided by its cash flow.

All the listed stocks are members of the S&P 500 and have a dividend yield above 2%, which is higher than the yield of the S&P. Companies with a Piotroski score of 7 or better and a debt-to-EBITDA ratio of less than 3 made the cut.

Take a look at CNBC's list here.