Stocks could be in for a bumpy second quarter if current market action continues. Investors may want to turn to some steady dividend payers to ride out the volatility and generate income. Equities have had a rocky start to the quarter as investors fret over the timing of interest rate cuts from the Federal Reserve. Fed Chair Jerome Powell said Wednesday that policymakers need further evidence that inflation is easing toward the central bank’s 2% goal before dialing back rates. CNBC Pro screened for so-called dividend aristocrats, companies that have raised their payments in each of the past 25 years. We further trimmed down the list using the following criteria: Stocks must be a member of the ProShares S & P 500 Dividend Aristocrats ETF (NOBL) . They offer a dividend yield of at least 2%. At least 51% of analysts have a buy rating. Average analyst price targets call for at least 10% upside going forward. Just four elite stocks made the cut. Oil major Chevron made the list with a 4.1% dividend yield. Shares have ticked up more than 7% in 2024. The company has a history of returning cash to its investors, and it approved in February a plan to increase its dividend by 8% to $1.63 last month despite fourth-quarter earnings falling. The company has also benefited from rising oil prices , which earlier this week reached their highest level since October. In March, Mizuho raised its price target on Chevron to $200 and maintained its buy rating, as well as its “top pick” designation. CVX YTD mountain Chevron stock. More than half of analysts polled by FactSet maintain a buy rating on Chevron. Their average price targets call for nearly 11% upside moving forward. Fast-food giant McDonald’s also made the cut, with a 2.4% dividend yield. The stock has slipped nearly 7% in 2024. The company recently announced plans to sell Krispy Kreme doughnuts nationwide by the end of 2026. MCD YTD mountain McDonald’s stock. Nearly 53% of analysts polled by FactSet maintain a buy rating on McDonald’s, with their average price targets forecasting 17% upside. Guggenheim, which rates McDonald’s as buy, lowered its 2024 earnings forecast to $12.40 per share from $12.50 in late February. “We see near-term sales upside driving McDonald’s to stand out in what could be a challenged 1Q restaurant earnings season given a slow start for the industry in 2024,” wrote analyst Gregory Francfort. Other dividend payers on the list include soft drink maker Coca-Cola and renewable energy producer NextEra Energy .
