Market volatility had been at all time high necessitating the need for dividend stocks for investors to optimizing returns despite the volatility. S&P 500 seems to be overvalued given rising growth risks. It appears that the S&P 500 could bottom around 3,400 in best case scenario. However, there is always a chance that the S&P 500 plunges toward 3,000 before coming back in the first half of 2023.
One dividend stock that’s worth mentioning is Eastman Chemical (EMN). The chemical industry company has a price target of $165 per share, and it’s expected to have a dividend yield of 3% next year.
Electric utility stock FirstEnergy (NYSE:FE) is also a top pick with a total expected return of 36%. Morgan Stanley has a price target of $53 on the stock and sees a dividend yield of 4% for 2023.
Pharmaceutical company AbbVie (NYSE:ABBV) is a dividend stock pick with a 42% total expected return, a $188 price target, and an expected yield of 4%.