Everybody is starting to get nervous, and that is probably a good sign. One Wall Street firm that we cover noted Wednesday that Google searches for “Stock Market Crash” are the highest since October 2008, and we know how that turned out. The bottom line is that while there could be more downside, the country is not in a recession, and buying stocks that are growing dividends makes good sense now. Toss in Wednesday’s big rally and the positive economic data Thursday, and things are looking brighter.

In a new report, the equity strategists from Deutsche Bank make the case that they generally prefer large dividend-paying stocks over small non-payers. They do point out it is important to consider sector earnings-per-share growth and overall valuations. The Deutsche Bank team ran a screen of the S&P 500 dividend-paying stocks that excluded financials, energy, utilities and telecoms. We screened for the stocks in the list rated Buy at Deutsche Bank and found four outstanding companies investors may consider now.

Dow Chemical

This large cap leader makes sense in all markets. Dow Chemical Co. (NYSE: DOW) is an integrated, market-driven company with an industry-leading portfolio of specialty chemical, advanced materials, agrosciences and plastics businesses that deliver a broad range of technology-based products and solutions to customers in approximately 180 countries and in high-growth sectors such as packaging, electronics, water, coatings and agriculture. Last year, Dow had annual sales of more than $58 billion and employed approximately 53,000 people worldwide.

With an improving domestic economy and emerging markets bottoming, the growth potential for a company like Dow Chemical with multiple revenues and product silos is outstanding. The stock got hit after second-quarter earnings and has dropped over 25% since then. At current levels, it is an outstanding buy.

Dow Chemical investors are paid an outstanding 4.2% dividend. The Deutsche Bank price target for the stock is $60. The Thomson/First Call consensus price target is $55.35. The stock closed Wednesday at $41.05.

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Procter & Gamble

This stock is down over 20% this year, partly because it has a very large 65% of sales directed to foreign customers. Procter & Gamble Co. (NYSE: PG) is a solid consumer staples stock to consider, especially for conservative investors. It sells lots of run-of-the-mill household items that are essential for everyday life and is not content to stand pat on its laurels.

The company actually is innovative in its product development process and uses that to help ensure future growth and cash flow. This should provide investors years of steady growth and dividends. While currency headwinds have weighed on recent earnings and projections, the dollar may be topping out this fall, and that would bode well for the future.

Shareholders are paid a very solid 3.82% dividend. Deutsche Bank has a $90 price target, and the consensus is a touch lower at $85. P&G closed Wednesday at $70.90.

Pfizer

This stock could be offering investors the best value at current trading levels. Pfizer Inc. (NYSE: PFE) rocked Wall Street this year with a gigantic $15.2 billion purchase of Hospira, a top provider of sterile injectable drugs — including those used for acute care and cancer treatment — and infusion technologies and biosimilars, which are subsequent versions of drugs whose patents have expired.

Also, the company’s drug Ibrance was approved for advanced breast cancer by U.S. regulators more than two months ahead of schedule. Pfizer is working on expanding the Ibrance label further by targeting different segments of breast cancer patients. The company also is exploring the possibility of developing Ibrance for additional tumor types including pancreatic and head and neck cancer.

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With a strong pipeline and the fact that Pfizer is the world’s largest drug manufacturer by sales value, many analysts feel the company can generate higher long-term revenues through the accelerated growth of its new drugs over the next five years, with Ibrance leading the way. Some on Wall Street predict that the company will make an accretive acquisition between now and the end of the year.

Pfizer investors are paid a solid 3.56% dividend. The Deutsche Bank price target is set at $42. The consensus target is $39.17. The stock closed Wednesday at $32.43.

Darden Restaurants

Darden Restaurants Inc. (NYSE: DRI) is one of the largest casual dining restaurant operators worldwide. It has operations in the United States and Canada with some 1,500 restaurants under the Olive Garden, LongHorn Steakhouse, Bahama Breeze, Seasons 52, The Capital Grille, Eddie V’s and Yard House brand names. Management returns much of its free cash to shareholders through share repurchases and dividends. With consumers having extra cash to spend as gasoline prices continue to stay low, the stock makes good sense.

The company announced in June that it would spin off 420 restaurants into a real estate investment trust (REIT) called Four Corners Property Trust that will be publicly traded and will lease properties back to Darden. A number of companies in the restaurant and retail sectors have begun cashing in on extensive property holdings, many of which have appreciated, as a way to generate cash.

Darden shareholders are paid a very respectable 3.3% dividend. The $79 Deutsche Bank price target is higher than the consensus target of $74.27. The shares closed Wednesday at $68.16.

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These are not exciting, but neither are market sell-offs and big paper losses. If investors have dry powder or have raised cash by selling higher beta momentum stocks, these may make good sense to rotate to now.

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