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Investors should stick to high-quality dividend payers in a volatile market as they await clarity on trade policy, according to Tom Hulick, CEO at Strategy Asset Managers. “We continue to favor kind of a mix of high-quality dividend stocks, and so investors should just be patient right now. We need to see more clarity on the trade tariff talks. We want to see interest rates come down,” Hulick told CNBC’s “Power Lunch” on Tuesday. “We can manage through this uncertainty with discipline and optimism, and I’m very hopeful that we’re going to have a very strong year-end,” he continued. Here are Hulick’s thoughts on a trio of stocks. Goldman Sachs Goldman Sachs last week delivered a stronger-than-expected earnings report , due to a surge in equities trading revenue, strengthening investors’ confidence in the stock. The bank stock is up more than 3% Tuesday. However, Hulick said he sees a better opportunity in JPMorgan in an environment where deal-making activity is expected to slow due to ongoing trade tensions. JPMorgan shares were up more than 2% in afternoon trading. “Their earnings per share were very strong, solid, but the headwinds from the tariffs and the global M & A softness are a caution for us,” Hulick said. “So, we see an opportunity in Goldman, but we prefer JP Morgan right now.” Goldman Sachs shares have fallen 9% year to date, while JPMorgan’s stock has shed less than 2% so far this year. Chevron Chevron has many of the characteristics Hulick prefers in an uncertain, volatile environment. Namely, the oil and gas company, which boasts a dividend yield of 5%, can help generate income for clients. “We own Chevron. They’re positioned to benefit from the U.S. policy support for offshore development. In any uncertain environment, dividend-paying stocks are the way to go, and since Chevron offers stability and cash flow for our clients,” Hulick said. “And as a forward thinking manager, we just don’t like to ride trends, but there’s a strategic viewpoint of this. I mean, right now, if you look at Chevron’s yield — 5%, 38 years of consecutive increases — this is exactly the type of shareholder discipline we prioritize.” CVX 1D mountain Chevron The stock is a consensus buy on the Street, according to CNBC’s analyst consensus tool. The stock is up 2.5% in afternoon trading. It is down more than 5% this year, still outperforming the S & P 500, which is down 10%. “This is a diversification that smooths out revenue cycles for us,” he added. PulteGroup Hulick, who is not a buyer of PulteGroup , said the company is well managed following its latest earnings beat. However, he said he is waiting for a better opportunity to get constructive on a company that is reliant on declining interest rates. “Pulte reported very, very strong earnings, but we believe the stock’s too dependent on declining interest rates and we want to see that for further upside,” Hulick said. 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!
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