The rising volatility in the stock market has become somewhat similar to the yellow light on a traffic light. No reason necessarily to stop, depending on where you are, but by the same token, one needs to proceed with caution. The stock market may not be showing a red light now, but a yellow light is certainly flashing. Investors need to proceed carefully with new stock selection.

In a new research report from Deutsche Bank, the equity strategists stress the need for investors to stay focused on stocks that are dividend growers. They also point that the companies that are maintaining and increasing share buybacks, plus maintaining and increasing dividends, are the stocks to buy now. The Deutsche Bank team views buybacks as shareholder distributions, thus, “true payout” ratios represent the portion of earnings distributed as dividends plus buybacks.

Here are the top stocks to buy that Deutsche Bank sees as the true dividend growers.

Amgen Inc. (NASDAQ: AMGN) is the top blue chip name in the biotech world. A biotechnology pioneer since 1980, Amgen has grown to be the world’s largest independent biotechnology company, has reached millions of patients around the world and is developing a pipeline of medicines with breakaway potential. The company trades at a low 15.2 times forward earnings. Investors are paid a 2% dividend. The Deutsche Bank price target for the stock is $142. The Thomson/First Call price target for the biotech giant is $130.05. The stock closed Wednesday at $125.98 a share.

Delta Air Lines Inc. (NYSE: DAL), like all the airlines, has been absolutely on fire. Despite the horrible winter weather, most on Wall Street are predicting a superb spring and summer travel season for the major carriers. The company said on Monday that it expects a first-quarter profit despite a revenue hit of $90 million, as winter storm cancellations consolidated passengers onto remaining flights. The company also is expected to increase the small 0.7% dividend soon. The Deutsche Bank price target is $37, and the consensus target is $40.06. Delta closed Wednesday at $34.50.

DR Horton Inc. (NYSE: DHI) is a top name to buy in the homebuilding industry. Homebuilders have held off building inventory due to the low household formation numbers. Those low household formation numbers have been the only reason why we have had a semblance of balanced supply and demand in the U.S. housing market. As that number improves, sales could take off over the next few years. The stock pays a 0.6% dividend. The Deutsche Bank target is $27, and the consensus target is $24.84. DR Horton closed Wednesday at $22.65.

FedEx Corp. (NYSE: FDX) fought through a difficult holiday season and looks to rebound as 2014 rolls on. The company recently announced an increase in shipping rates by an average of 3.9% in the FedEx Freight segment. The new rates will be effective from March 31, 2014. FedEx remains successful in implementing higher shipping rates, which are imperative to revenue growth. Previously, the company provided rate hikes for 2014, including a 3.9% hike in shipping rates at FedEx Express for U.S. export and import services. That went into effect in January. The company pays a 0.4% dividend. The Deutsche Bank price objective is $181, and consensus target is at a much lower $153. FedEx closed Wednesday at $137.79.

Fluor Corp. (NYSE: FLR) should benefit huge from an expected pickup in commercial construction. The company reported earnings of $688 million, or $4.06 a share, which surpassed the consensus of $4.03 a share by 0.7%. Annual earnings were also up from the prior-year earnings of $456 million, or $2.71 a share. Strong performance in the Oil & Gas, Power and Government segments drove the top-line growth. Investors are paid a 1.1% dividend. The Deutsche Bank target is $95, while the consensus is slightly lower at $91.90. Fluor closed Wednesday at $76.45.

Honeywell International Inc. (NYSE: HON) is a top name to buy now in the aerospace and defense sector. The company is a global diversified technology and manufacturing company with a wide range of aerospace products and services, control, sensing and security technologies for buildings, homes and industry, turbochargers, automotive products, specialty chemicals, electronic and advanced materials, process technology for refining and petrochemicals, and energy efficient products and solutions for homes, business and transportation. Investors are paid a 1.9% dividend. The Deutsche Bank price objective is $103.05, and the consensus is set at $100.86. Honeywell closed Wednesday at $93.85.

Medtronic Inc. (NYSE: MDT) operates in two segments, the Cardiac and Vascular Group and the Restorative Therapies Group. The Deutsche Bank team thinks the company has the appropriate strategic focus, and it has a number of new products in the pipeline that along with continued emerging market performance should lead to acceleration in growth. Longer term, they also believe Medtronic should benefit from its size and scale. Investors are paid a 1.9% dividend. The Deutsche Bank price objective is $70, and the consensus target is $64.13. Medtronic ended trading Wednesday at $59.83 a share.

Stryker Corp. (NYSE: SYK) wraps up the top dividend growers to buy at Deutsche Bank. With the acquisition of Trauson about a year ago, Stryker has shown the commitment to expand its business in the lower-priced segment and emerging markets. Sales in these regions have grown from 6% of total in 2012, to 7% in 2013 and are expected to grow further to 8% in 2014, with the aim to get to double digits in the future. Further acquisitions will continue to be the main driver for growth. The company has also committed $700 million for the repurchase of its stock. Investors are paid a 1.50% dividend. The Deutsche Bank price target is $90, and the consensus is at $85. Stryker closed Wednesday at $81.63.

Investors need to remember the Deutsche Bank calculation to make the dividend growers list is dividends plus stock buybacks. Many of these companies have the ability to grow their actual dividend, and most are expected to. The stocks buybacks keep a solid bid under the names, which is very positive for shareholders overall.

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