Investors seeking some safe income with the potential for upside going into a tricky second half of the year for the economy may find these elite dividend stocks attractive. Investors are likely torn these days between many on Wall Street calling for a recession in the back half of the year, yet watching a stock market that appears to be attempting a new bull market. These dividend stocks gives them a way to participate in an equity rally, but generate some steady income if that bull doesn’t come to pass. CNBC PRO screened the S & P 500 using some stiff criteria that returned only 8 stocks. We sought to find stocks that pay a hefty dividend, but that can clearly afford to do so with less risk of a lowered payout. Here’s what we used to find these names: Dividend yield higher than the current 10-year Treasury yield Dividend payout ratio less than 40% Debt to capital ratio less than 55% Increased dividends in 4 of the last 5 years Here are the names that came back: Pfizer, a Dow Industrials member and long-time favorite of dividend investors, makes the cut, offering a nice 4.2% yield. Three large regional banks which survived the Silicon Valley Bank-fueled crisis earlier in the year also made the list. These stocks offer hefty yields and a way to play the industry’s comeback.
