Caution has set the tone in the markets this week. The S&P 500 extended its decline for a third straight session yesterday as two major factors continue to weigh on sentiment.
The first is the shift in expectations around a . At the start of last week, the Investing.com rate barometer showed nearly a 70% chance of easing in December. By the end of the week, that figure had slipped below 50%, and it now sits near 40%.
This means traders no longer view a December cut as the central scenario. The market now leans toward a January move instead. This would give the Fed more time to review the economic data that was delayed during the shutdown, a view reinforced by several recent remarks from FOMC members.
The other factor weighing on the market is the anticipation around Nvidia’s (NASDAQ:NVDA) quarterly results, which arrive tomorrow evening. As the world’s largest company and a key gauge for the AI industry, Nvidia influences the broader market. Any weakness in its numbers or guidance could ripple across equities, leading investors to stay cautious.
In a worst-case scenario where Nvidia underdelivers and the Fed skips a rate cut on December 10, the final stretch of the year could become especially tough for US stocks.
In this environment, adding more stability to portfolios becomes a sensible approach, and high-quality dividend payers offer one of the most effective ways to do that when chosen with care.
Dividend-paying stocks generate steady income even when share prices move sideways, and they come from companies that already have solid profits. They also tend to attract a more stable group of investors, which gives them greater resilience during periods of weakness. The trade-off is that they usually lag during strong bursts of market optimism.
7 Reliable S&P 500 Dividend Picks for a Volatile Stretch
Using the Investing.com screener, we looked for the strongest dividend stocks in the S&P 500, guided by the following criteria:
- S&P 500 stocks
- Dividend yield in excess of 5%.
- Dividend payments for more than 10 years
- Increasing dividends over 3 and 5 years
- Upside potential of over 10% according to InvestingPro Fair Value
- InvestingPro health score above 2.5/5
Note: InvestingPro Fair Value reflects an informed blend of multiple established valuation models for each stock. The Health Score draws on essential financial indicators to gauge a company’s overall strength. Bringing these two together helps InvestingPro screener zero in on undervalued names that show strong and stable fundamentals.
This focused search brought the list down to only seven stocks:
ATTENTION: Although the basic functions of the Investing.com screener are available free of charge, in this search we used metrics reserved for InvestingPro, Pro+ plan subscribers.
Here is a smooth and clear version that stays within your style preferences:
These S&P 500 names offer dividend yields in a range of 5.3 percent to 7.3 percent and trade at discounts of 10.5 percent to 26.2 percent based on Fair Value estimates. Along with strong income, they also carry meaningful room for appreciation.
There are also plenty of dividend opportunities outside the S&P 500 for investors who want to strengthen their portfolios.
To uncover them, the pre-configured searches on the Investing.com screener offer a useful starting point:
Please keep in mind that some of these pre-configured searches are available only to InvestingPro and Pro+ subscribers.
If you’re not yet an InvestingPro subscriber and want to explore the opportunities mentioned in this article along with access to InvestingPro tools, you can now take advantage of an exclusive 55% early bird Black Friday discount by clicking the button below.
Finally, please note that the features mentioned in this article are far from being the only InvestingPro tools useful for market success. In fact, InvestingPro offers a wide range of tools that enable investors to always know how to react in the stock market, regardless of market conditions. These include:
- AI-managed stock market strategies that are re-evaluated monthly.
- 10 years of historical financial data for thousands of global stocks.
- A database of investor, billionaire, and hedge fund positions.
- And many other tools that help tens of thousands of investors outperform the market every day!
Tens of thousands of investors are already using InvestingPro to outperform the market. Why shouldn’t you?
Disclaimer: This article is written for informational purposes only. It is not intended to encourage the purchase of assets in any way, nor does it constitute a solicitation, offer, recommendation or suggestion to invest. I would like to remind you that all assets are evaluated from multiple perspectives and are highly risky, so any investment decision and the associated risk belongs to the investor. We also do not provide any investment advisory services.