Markets could remain under pressure through the end of the year, and high dividend stocks are one option to help investors through the uncertainty, according to Morgan Stanley.
Investors are also assessing pressures on the market driven by the surprise attack on Israel by Palestinian militant group Hamas over the weekend.
To play another potential breakdown in the market, Morgan Stanley highlighted several dividend stocks that combine yield (how much a company pays out in dividends each year), dividend growth (how much that dividend grows over a period of time) and stability, and that look attractive on a three- to five-year basis.
Morgan Stanley projects yields of 9.6% for Energy Transfer in 2024 and 9.9% for MPLX, a master limited partnership created out of Marathon Petroleum that operates crude oil and refined product pipelines.
The bank's preference in tobacco is Philip Morris , whose 2024 dividend yield could be 5.5%, according to Morgan Stanley.
Persons:
Morgan Stanley, Mike Wilson, Wilson, Philip Morris, they're, Hess, Morgan Stanley's, — CNBC's Michael Bloom
Organizations:
Hamas, Energy, Marathon Petroleum, Procter & Gamble, Colgate, Palmolive, Financial, Verizon
Locations:
Israel, Palestinian