These steady dividend stocks will get investors through summer turbulence

Published Thu, May 6 20219:37 AM EDTUpdated Thu, May 6 202112:25 PM EDT

Jesse Pound @/in/jesse-pound @jesserpound

In a time when the stock market waffles between tech and cyclical leadership and uncertainty abounds around tax policy, some investors might prefer the stability of dividend-paying stocks. The stocks listed below have a combination of a bullish outlook and healthy dividend yield, according to a CNBC PRO screen. The companies have a dividend yield of at least 2%, while the S & P 500 yields closer to 1.5%, and a buy rating from the majority of analysts on the Street. Additionally, CNBC PRO screened names for strong Altman-Z scores, a metric that assesses how likely non-financial companies are to become bankrupt. The name with the biggest dividend yield on the list is tobacco stock Philip Morris at 5.1%. Tobacco companies often have high dividends, but investors who screen for ESG — or environmental, social and corporate governance factors — avoid them. Cigarette makers are facing a new regulatory hurdle, with the Food and Drug Administration proposing to ban menthol-flavored cigarettes . Shares of Philip Morris initially dropped when the news was first reported last month, but the stock has since recovered. Pharmaceutical giant Merck has the second-biggest yield on the list at 3.4%. The company's stock had a rough 2020, falling sharply even before the pandemic sell-off gripped the broader market. Merck was trading above $90 per share at the start of 2020, but has been churning in the $70s this year. The companies on the list with the highest approval ratings from Wall Street are power-management company Eaton and McDonald's , with buy ratings from 70% and 69% of analysts, respectively. The stocks have held up well this year, with McDonald's rising more than 9% and Eaton outperforming the broader market with a 20% jump. McDonald's reported its first-quarter results at the end of April, drawing praise from several Wall Street analysts. KeyBanc hiked its price target on the stock to $265 per share, citing the company's strength in the U.S. and abroad. "U.S. [same store sales] trends remain strong and McDonald's remains a category leader in the majority of its foreign markets, where it will likely benefit from strong pent-up demand. Despite the 13% increase in the stock over the last three months (vs. S & P 500 +11%), MCD has underperformed its fast food rivals and remains attractive on a relative basis," KeyBanc said in an April 29 note. CNBC Pro obtained its data from FactSet.

A McDonald's restaurant is pictured in Encinitas, California.

Mike Blake | Reuters

In a time when the stock market waffles between tech and cyclical leadership and uncertainty abounds around tax policy, some investors might prefer the stability of dividend-paying stocks.

The stocks listed below have a combination of a bullish outlook and healthy dividend yield, according to a CNBC PRO screen.

The companies have a dividend yield of at least 2%, while the S&P 500 yields closer to 1.5%, and a buy rating from the majority of analysts on the Street.

Additionally, CNBC PRO screened names for strong Altman-Z scores, a metric that assesses how likely non-financial companies are to become bankrupt.