As market pressures continue, investors are hammered with pundits now saying either the sky is falling or we are just in a bull market correction. One thing we know for sure at 24/7 Wall St. is, after years without a true 10% correction, the recent action was long overdue. Many of the top firms we cover on Wall Street are using the sell-off as a chance to reset portfolios for the fourth quarter and next year.

In a new Merrill Lynch research report, the analysts on the US 1 team make changes to the portfolio. Here we cover the new moves, and also update three top dividend-paying stocks on the list. All stocks in the list are rated Buy at Merrill Lynch.

CSX Corp. (NYSE: CSX) makes its debut on the US 1 stock list. The company provides rail, intermodal and rail-to-truck transload services and solutions to customers across a broad array of markets, including energy, industrial, construction, agricultural and consumer products. Shares have been hit hard on concerns over coal transportation.

CSX investors are paid a solid 2.8% dividend. The Merrill Lynch price target for the stock is $34, and the Thomson/First Call consensus target is $34.23. Shares closed Tuesday at $25.94.

FedEx Corp. (NYSE: FDX) and Whirlpool Corp. (NYSE: WHR) were both removed from the US 1 list. The analysts cite overall portfolio composition as the reason for the removals. Both stocks remain rated Buy at Merrill Lynch.

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The US 1 stocks look like outstanding choices right now as they all offer dividends and a degree of large cap safety.

Disney

This top consumer media company with multiple streams of income got absolutely hammered after earnings that were less than expected, promoting a big fear that consumers are “cutting the cable cord.” Walt Disney Co. (NYSE: DIS) has the movie studio business poised to improve, as with accelerating theme park business, the network programming continues to drive viewership with extensive sports programming. Most importantly, the company produces tons of content that will keep it a long-term media alternative, and recently announced that Star Wars-themed lands will be coming to Disneyland park and Disney’s Hollywood Studios at Walt Disney World Resort in Orlando, Fla.

The Disney Media Networks segment operates broadcast and cable television networks, domestic television stations, and radio networks and stations, and it is involved in television production and television distribution operations. Its cable networks include ESPN, Disney Channels and ABC Family, as well as UTV/Bindass and Hungama. This segment also owns eight domestic television stations. Disney is also one of 24/7 Wall St.’s top 10 stocks to own for the next decade.

Disney shareholders are paid a 1.33% dividend. The Merrill Lynch price target is $130, and the consensus target is $118.57. Shares closed most recently at $99.42.

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Eli Lilly

This stock checks in at high on the global pharmaceutical lists at many top Wall Street firms and is the only large cap pharmaceutical on the Merrill Lynch US 1 list. Eli Lilly and Co. (NYSE: LLY) is somewhat surprisingly out of consensus with portfolio managers at mutual fund and hedge funds. It also has more Neutral ratings than Buy ratings on Wall Street.

New cancer drug Cyramza recently won FDA approval for label expansion. It treats patients suffering from metastatic colorectal cancer. This was the fourth Cyramza approval in a year; it already has approval to treat advanced or metastatic gastric or gastroesophageal junction adenocarcinoma and metastatic non-small cell lung cancer. Cyramza has so far generated sales of $67.5 million.

The Merrill Lynch team and other analysts on Wall Street love the company’s product pipeline and point to Solanezumab for Alzheimer’s Phase 3 data, which had positive clinical results reported in late July, and Jardiance, the company’s drug for diabetes, CV data, which recently posted very positive clinical results. The recent Phase 3 data on Evacetrapib was very solid and just another positive for the company.

Shareholders are paid a solid 2.49% dividend. The $108 Merrill Lynch price target is well above the consensus target of $96.11. Shares closed Tuesday at $80.28.

Verizon Communications

This top telecommunications company recently did away with some phone incentives. Verizon Communications Inc. (NYSE: VZ) is a global leader in delivering the digital world. Verizon Wireless operates America’s most reliable wireless network, with 109.5 million retail connections nationwide. Verizon also provides converged communications, information and entertainment services over America’s most advanced fiber-optic network, and it delivers integrated business solutions to customers worldwide.

Wall Street has applauded Frontier’s acquisition of Verizon Communications’ wireline operations in California, Florida and Texas, which is expected to be completed at the end of March 2016. Many feel that focusing on the higher margin segments at the company makes sense, and the sale to Frontier is a huge cash boost to the balance sheet.

Verizon investors are paid a massive 5.19% dividend. The Merrill Lynch price target is $55, and the consensus price objective is $50.79. Shares closed Tuesday at $43.53.

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The market volatility has left all investors a touch shaken, but the chatter of a bear market and a collapse ring pretty hollow when the economy is not in recession. It is important to note, though, the days of low volatility and a constant upward trend are over for a while. Careful stock selection will be the key going forward.

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