Investors looking to cushion their portfolios in the midst of the recent market volatility may be turning to dividend-paying stocks. Equities are off to a rocky start so far this year thanks to uncertainty around President Donald Trump’s tariffs and the economy. On Wednesday, the market fell ahead of the tariff rollout, expected in the afternoon, and then recovered. Trump has said the levies will be reciprocal and will “start with all countries.” Stocks with consistent dividends are often thought of as ballast in market storms, since the income generated can help offset any declines in the share price. “Dividends can help reduce volatility in a time of greater uncertainty and geopolitical risks,” Morgan Stanley strategist Todd Castagno wrote in a note early last month. “In periods of slow growth, dividends become more important and make up a larger percentage of investors’ total returns.” Moreover, many of the stocks are underappreciated and ended the first quarter on Monday offering significant upside to analysts’ price targets. To find the dividend-paying stocks that Wall Street believes will move higher, CNBC screened for those that both yield more than the S & P 500 ‘s yield of 1.37%, and have at least 30% upside to the average price target, according to FactSet. They also are rated a buy from 60% or more of the analysts covering them. Broadcom is most loved by analysts, with nearly 70% rating it a buy, FactSet data shows. The semiconductor company has a 1.4% dividend yield, which it first began paying a year ago, and about 54% upside to the analysts’ average price target. Last month, Broadcom handily beat earnings and revenue expectations in its fiscal first quarter. It also gave strong guidance for its second quarter ending April 30, with CEO Hock Tan saying Broadcom expects continued strength in artificial intelligence revenue. The stock is JPMorgan’s top pick in semiconductors. “Overall, the team continues to drive a stable revenue growth profile even in a period of macro volatility given its portfolio breadth/diversification/product cycles,” analyst Harlan Sur wrote in a note after Broadcom’s earnings report. The stock is down almost 27% year to date. The highest current dividend yield in the cohort belongs to Host Hotels & Resorts , which pays 5.6%. Some 60% of analysts covering the stock rate it a buy and it has 38% upside to the average price target. The real estate investment trust’s fourth-quarter results topped expectations in February. CEO Jim Risoleo told CNBC at the time that the Host Hotels & Resorts’ consumer, who is affluent, is “very healthy.” Host Hotels continues to see growth in what it calls “out of room spend, ancillary revenues,” which includes golf and spa services, the CEO said. “Consumers are showing up at properties and they are spending money.” Shares have slipped more than 17% so far in 2025. Investors get a 3.2% dividend yield with Citigroup , which has 31% upside to the average price target. Some 65% of the analysts covering the money center rate it a buy. In January, Citi reported earnings and revenue in its fourth quarter that topped estimates. Citi also authorized a $20 billion stock buyback at the time, with $1.5 billion occurring coming in the first quarter. Led by CEO Jane Fraser, Citi is in the middle of a turnaround to reshape its business. “We all want transformation to get done quickly, and we want it to get done right. That is why our expenses are temporarily elevated — to make the investments to get there,” Fraser said during the earnings conference call. The stock is little changed so far this year, up about 1%, excluding the dividend. Lastly, Delta Air Lines, which yields 1.4%, has the most upside to the average price target, at about 84%. The stock has been hit, along with the rest of the airline industry, by concerns about weaker-than-expected travel demand . On Tuesday, Delta was downgraded to hold from buy at Jefferies, which cited a likely reduction in Delta’s 2025 sales and earnings forecast. The airline is expected to report earnings next week. Shares are down 29% year to date. Get Your Ticket to Pro LIVE Join us at the New York Stock Exchange! Uncertain markets? Gain an edge with CNBC Pro LIVE , an exclusive, inaugural event at the historic New York Stock Exchange. In today’s dynamic financial landscape, access to expert insights is paramount. As a CNBC Pro subscriber, we invite you to join us for our first exclusive, in-person CNBC Pro LIVE event at the iconic NYSE on Thursday, June 12. Join interactive Pro clinics led by our Pros Carter Worth, Dan Niles, and Dan Ives, with a special edition of Pro Talks with Tom Lee. You’ll also get the opportunity to network with CNBC experts, talent and other Pro subscribers during an exciting cocktail hour on the legendary trading floor. Tickets are limited!
These defensive dividend stocks are loved by Wall Street
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