Every time it seems safe to go back in the water, oil gets hammered and the stock market dives again. One very good sign is that most of Wall Street is as bearish now as they were in 2009, and after a correction to open the year in January, things are very negative to say the least.

Given the sparsity of good income investment alternatives now, especially with interest rates continuing to plummet, one good alternative for gun-shy investors is conservative stocks that pay big dividends. We screened the Merrill Lynch research database and found four that fit the bill perfectly.

AT&T

This company will continue to serve customers regardless of where oil trades. It is also on 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. With shares trading at a very cheap 12.5 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.

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 Salesforce’s Service Cloud, companies can automatically create and route service requests, cases or tickets through pre-built workflows.

While fourth-quarter earnings were in line with forecasts, and slightly below the Merrill Lynch estimates, a change in accounting for the entertainment group lowered revenue/EBITDA by $300 million for the quarter. The analysts note that this knocked $0.03 off the bottom line numbers. So all in all, a solid quarter, and another reason for conservative accounts to own the stock.

AT&T investors receive a huge 5.35% dividend. The Merrill Lynch price target for the stock is $40, and the Thomson/First Call consensus price target is $37.24. Shares closed Tuesday at $36.06.

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. The company, 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 just reported very solid earnings, and with gas prices staying the lowest in years and GM producing some of the best new models in years, the future for the battered stock looks very good.

Investors receive a 4.92% dividend. Merrill Lynch has a $44 price target. The consensus target is lower at $41.13. Shares closed Tuesday at $29.65.
Kraft Heinz

This top consumer staple stock makes good sense for nervous investors and is one of the Merrill Lynch top 10 ideas for 2016. Kraft Heinz Co. (NYSE: KHC) is the third-largest food and beverage company in North America and the fifth-largest food and beverage company in the world, with eight brands worth over $1 billion.

A globally trusted producer of delicious foods, Kraft Heinz provides high quality, great taste and nutrition for all eating occasions, whether at home, in restaurants or on the go. Its iconic brands include Kraft, Heinz, Capri Sun, Classico, Jell-O, Kool-Aid, Lunchables, Maxwell House, Ore-Ida, Oscar Mayer, Philadelphia, Planters, Weight Watchers Smart Ones and Velveeta.

Consumer staples are expected to continue to do well this year, and this is one of the top companies in the sector. The company will report fourth-quarter earnings later this month, and analysts across Wall Street are generally bullish on the potential for solid numbers.

Shareholders receive a tasty 3.03% dividend. The $85 Merrill Lynch price target is lower than the $90.29 consensus estimate. The stock closed at $75.97.

PPL

PPL Corp. (NYSE: PPL) serves 321,000 natural gas and 397,000 electric customers in Louisville and 16 surrounding counties, and 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 it operates electricity distribution network for the Midlands, South West and Wales in the United Kingdom.

In addition, it 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.

This utility beat third-quarter earnings expectations but came in a little light on the revenue side. The company is expected to report its most recent quarterly results on Thursday.

The company is one of the leading utility companies in the country 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.

PPL investors receive a generous 4.15% dividend. The Merrill Lynch price target is $36, and the consensus target is $36.56. Shares closed Tuesday at $36.37.

The gut-wrenching volatility is getting old, but with Treasury yields the lowest since last summer’s meltdown, that is not an option. Solid dividend stocks like these act far better in shaky markets, and they make good sense for investors now.

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