As the economy slows down, investors will want to play defense with dividend strategies, according to Wolfe Research.
"In a later cycle environment, dividend growth becomes scarce and investors tend to pay up for companies with high dividend growth," analyst Chris Senyek wrote in a note last week.
Therefore, the strategy is to look for names with both high dividend growth and a high free cash flow yield, since investors look to cash flow to support further dividend growth, he said.
Comcast has an average analyst rating of overweight and has nearly 10% upside to the average price target, according to FactSet.
Lennar is also well-liked by analysts, with an average rating of overweight and about 20% upside to the average price target, per FactSet.
Persons:
Chris Senyek, Senyek, Peacock, Morgan Stanley, Benjamin Swinburne, Lennar, Raymond James, Buck Horne, UnitedHealth, Bernstein, Lance Wilkes, — CNBC's Michael Bloom
Organizations:
Wolfe Research, Comcast, Media, CNBC