Worried about the volatile market? Analysts love these 10 global stocks with safe and high dividends

Published Tue, Oct 10 20238:23 PM EDTUpdated Tue, Oct 10 202310:28 PM EDT

Investors have to contend with an increasingly volatile market — wider geopolitical risks from the Israel-Hamas conflict are adding to the existing uncertainty from rising bond yields and higher rates. Some analysts recommend buying dividend stocks as a way around it. Morgan Stanley equity strategist Mike Wilson said in an Oct. 9 report that high-dividend stocks are one way investors can navigate the uncertainty. Similarly, BMO in an Oct. 4 note said it expects increased bouts of volatility in the coming months and said a dividend-focused strategy is able to combat high levels of volatility and protect against losses. For those interested in that strategy, CNBC Pro screened for stocks with safe and high dividend yields that they can afford, under the MSCI World, S & P 500 and FTSE All-World ex-U.S. indexes. The following criteria were used: Dividend yield above 4%. Dividend payout ratio less than 50%. Debt-to-capital ratio less than 80%. A positive year-to-date return. An analyst buy rating of more than 50%. These are 10 global stocks that made the cut. Energy, auto and financial stocks were among those that showed up in the screen. Automaker Stellantis boasted the highest dividend yield of the lot, offering around 10%, with a decent 76% buy rating from analysts, who gave it 28% potential upside. Other automakers that made the cut include Mercedes-Benz , which offered the next highest dividend yield at 8.5%, and Hyundai Motor . Hyundai also got the highest potential upside in this list at 44.4%. Energy stocks in the screen include ConocoPhillips and Diamondback Energy. Prominent investor Oakmark Funds' Bill Nygren said this week that energy stocks deserve a place in the portfolio , especially when the market is especially volatile. The S & P 500 energy sector jumped more than 3% Monday to be the best-performing grouping by far, driven by rising oil prices as investors assessed the effects of the deadly Israel-Hamas conflict. — CNBC's Yun Li, Michael Bloom contributed to this report.