Was Wednesday the big wash-out that experienced traders are looking for? Was there enough panic and capitulation? The jury is still out. One thing is for sure, as weak holders flee the stock market and print massive losses, some of the best stocks to buy when things get dicey are not only standing their ground, they could be poised for a torrent of new money as investors bolt momentum stocks.

Smart investors may be wondering why, say, a telecom stock is going down just because oil has traded lower? Once the avalanche in selling starts, nothing is safe and that is exacerbated by panicked retail accounts that would rather take huge losses than risk losing everything.

We screened the Merrill Lynch research data base for stocks that should not only hold up well in the face of continued selling but have solid upside potential when things turn higher. They also pay solid dividends and are rated Buy.

AT&T

This company posted very solid third-quarter numbers, and was just added to the Merrill Lynch prestigious US 1 stock list. AT&T Inc. (NYSE: T) is the world’s largest provider of pay TV, with TV customers in the United States and 11 Latin American countries. In the United States, the AT&T wireless network has the nation’s self-described strongest 4G LTE signal and most reliable 4G LTE.

The company also helps businesses worldwide serve their customers better with mobility and highly secure cloud solutions. Trading at a very cheap 11.9 times estimated 2016 earnings, the company continues to expand its user base, and strong product introductions from smartphone vendors have not only driven traffic, but increased device financing plans.

AT&T reiterated 2015 guidance for double-digit revenue growth and continued consolidated margin expansion. Management expects capital spending to increase sequentially and they also estimate that free cash flow could be better than $4.5 billion. Third-quarter wireless subscriber additions came in higher than many Wall Street estimates, and DirecTV saw positive video additions where many expected losses.

The company announced recently it is working with Salesforce.com to connect Internet of Things data from AT&T’s solutions into Salesforce’s Customer Success Platform. By connecting AT&T M2X into the Salesforce Service Cloud, companies can automatically create and route service requests, cases or tickets through pre-built workflows.

AT&T investors receive a huge 5.66% dividend. The Merrill Lynch price target for the stock is $40, and the Thomson/First Call consensus estimate is $37.16. Shares closed Wednesday at $33.90.

EPR Properties

This top triple-net real estate investment trust (REIT) just raised its dividend almost 6%. EPR Properties (NYSE: EPR) invests in properties in select market segments that require unique industry knowledge, while offering the potential for stable and attractive returns. The company’s total investments exceed $4.5 billion and the primary investment segments are Entertainment, Recreation and Education.

EPR adheres to rigorous underwriting and investing criteria centered on key industry and property level cash flow standards. Corporate executives believe that the focused niche approach provides a competitive advantage and the potential for higher growth and better yields.

Last week the EPR board of trustees declared its monthly cash dividend to common shareholders. The dividend of $0.32 per common share is payable February 15, 2016 to shareholders of record on January 29, 2016. This dividend represents an annualized dividend of $3.84 per common share, an increase of 5.8% over prior year and the company’s sixth consecutive year with an annual dividend increase.

Shareholders receive an outstanding 7.04% dividend. Merrill Lynch has a $65 price target, and the consensus target is $61.71. Shares closed Wednesday at $54.51.
General Motors

Despite all the recall troubles and litigation issues, hedge funds and mutual funds are continuing to stick with General Motors Co. (NYSE: GM), as many view the stock as very undervalued. GM trades just below an incredible 5.4 times estimated 2016 earnings. GM, like Ford, has benefited from incredible sales in China to boost revenue. GM invested heavily in China decades ago and grabbed a big chunk of what is now the world’s largest auto market.

With the company facing continued possible punitive damages over ignition switches, there will continue to be a headline risk cloud over the stock. Long-term patient investors that can look beyond current issues may stand to make outstanding money on the auto giant, especially as oil prices plummet and low gasoline prices continue to push new buyers into showrooms.

GM investors receive a 4.89% dividend. The $44 Merrill Lynch price target is higher than the consensus target of $41.59. Shares closed Wednesday at $29.42.

PPL

This utility beat third-quarter earnings expectations but came in just a little light on the revenue side. PPL Corp. (NYSE: PPL) serves 321,000 natural gas and 397,000 electric customers in Louisville and 16 surrounding counties, as well as 543,000 customers in 77 Kentucky counties and five counties in Virginia. The company also provides electric delivery services to approximately 1.4 million customers in Pennsylvania and operates electricity distribution network for the Midlands, South West, and Wales in the United Kingdom.

In addition, PPL offers a range of customer-care and back-office services to competitive retail energy suppliers, including customer enrollments; contract management; electronic data exchange; simple and complex billing; and call center operations comprising telemarketing, payment processing and collections of overdue accounts.

The company is one of the leading utility companies in the United States that plans to continue to increase regulated operations and lower earnings volatility attached to competitive operations. PPL raised cash and lowered debt late last year by selling some hydroelectric assets to Northwestern energy.

Investors receive a generous 4.6% dividend. The Merrill Lynch price target is $36. The consensus target is $36.38, and PPL closed Wednesday at $32.80.

While this kind of sell-off is always a punch in the face to investors, the overall future doesn’t look near as grim as the current one. Low gasoline prices will spur spending, and while the pundits are screaming recession, the possibility still looks only 50/50 at best. One thing is for sure, the Federal Reserve may not raise rates again until 2017, and that will also help with economic tailwinds.

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