Broadcom, Chevron among Wall Street’s favorite dividend stocks heading into treacherous second half
As dividend stocks gained in popularity this year, CNBC Pro sought names that could continue to offer investors relative safety and higher yields in the back half of 2022. Investors have pivoted deeper into dividend payers, as greater uncertainty and rising interest rates unnerved market participants and spurred a rotation out of growth names. On Thursday, S & P 500 capped its worst first half since 1970 , and will navigate what will likely be a treacherous remainder of the year. A search for Wall Street’s favorite dividend payers in the S & P 500 yielded some notable names including chip stock Broadcom and energy company Chevron among others, according to FactSet data. These stocks have dividend yields of at least 3%, which is notably better than the current yield on the benchmark 10-year Treasury note . They’re also the names most favored by Wall Street. The stocks also have at least 20% upside to their price targets, and they’re expected to generate earnings of at least 10%. Here is the list: Semiconductor stocks tumbled in the first half of 2022, and investors worry that they still have further to fall. Still, Broadcom was identified by Deutsche Bank in June as a preferred stock in the sector because of its defensive characteristics. The company has a solid dividend yield of 3.3%, according to FactSet data. Chevron may have surged more than 20% this year, but the stock is still considered a buy by four out of 10 analysts. Cowen analysts said in a Friday note that they expect the company to maintain its share buyback for the quarter. Chevron has a 3.8% dividend yield. Luxury fashion company Tapestry is a high dividend payer, with a 3.3% yield. The parent company behind Coach and Kate Spade was upgraded to buy last month by Jefferies analysts, who said Tapestry has an improved margin and sales growth outlook. It’s also a play on the luxury theme, which outperforms during economic slowdowns. Other stocks that made our list are: Phillips 66 , Valero Energy , Williams Companies , Corning , Devon Energy , Eastman Chemical and Kimco Realty .