BofA Picks Top Dividend Stocks for Stability Amid Choppy Markets

Savita Subramanian, Bank of America's head of US equity and quantitative strategy, believes that dividends will play a bigger role in returns as payout ratios sit near record lows. This shift towards what she calls a 'total return' market means investors should focus on dividend stocks rather than chasing high yields.

Subramanian's screen targets the second quintile of dividend payers, which include companies with above-average yields without excessive risk. Three stocks have been identified as stable dividend options: Chevron (CVX), Duke Energy (DUK), and Host Hotels & Resorts (HST).

Chevron has a 3.55% dividend yield, backed by a 31% year-to-date share gain due to elevated crude prices. The energy major beat expectations in its second-quarter results, with net income surging approximately 400% year-over-year.