Investing is something that many people make harder than it really should be. The biggest part of long-term gains in the market can come from the dividends that the top companies pay and increase on a regular basis. Dividends and increases in price create total return, and that is the key to building wealth over the long term. Another key? Don’t get shaken out by “the sky is falling” talking heads, that in many cases are failed Wall Street losers that still get a forum due to name recognition.

We screened the Merrill Lynch research database for dividend stocks that are rated Buy, have the lowest risk profile at the firm, have raised their dividend regularly and are in sectors that tend to perform regardless of near-term market conditions. We found four that fit the bill perfectly.

AT&T

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 most reliable 4G LTE and the strongest signal. 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.

AT&T 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 slightly below the Wall Street estimates, a change in accounting for the entertainment group lowered revenue/EBITDA by $300 million for the quarter. Merrill Lynch noted that this knocked three cents off the bottom line numbers. All in all, a solid quarter, and another reason for conservative accounts to own the stock, especially with solid DirecTV additions and mid-single-digit earnings growth estimated for 2016.

AT&T investors receive a huge 5.17% dividend. The Merrill Lynch price target for the stock is $40, and the Thomson/First Call consensus estimate is $37.63. Shares closed Friday at $37.13.

Altria

The maker of tobacco products and wine has posted very solid numbers, and 2016 looks to be another solid year. Altria Group Inc. (NYSE: MO) is a top mega-cap consumer discretionary stock to buy on Wall Street, and its Marlboro brand remains one of the most recognizable in the world.

Many Wall Street analysts concede that the stock has solid downside support owing to the generous dividend yield, which remains at a huge premium in relation to the 10-year Treasury rate. Cash flow generation and the return of cash to Altria shareholders remain key facets of the company’s total shareholder return, and the analysts expect support of the strong dividend, which they believe will continue to climb, and strong share repurchase activity.

To diversify away from cigarettes and cigars, Altria has expanded its portfolio into new categories like wine, e-cigarettes and a 27% stake in brewer SABMiller, which together generated nearly 10% of its pre-excise tax revenue last quarter. With SABMiller being acquired, Altria will have a huge stake in the world’s biggest beer company.

While fourth-quarter earnings came in slightly below estimates for the first time in almost two years, the company expects 2016 full-year adjusted diluted earnings per share to be $3.00 or so, which excludes restructuring charges of approximately a nickel per share. This is positive growth, and solid in an otherwise low growth world.

Altria investors receive a 3.67% dividend. Merrill Lynch has a $66 price target, and the consensus target is $64.88. The stock closed Friday at $61.54.
Coca-Cola

This company remains a top Warren Buffet holding and offers not only safety, but an incredible strong worldwide brand. Coca-Cola Co. (NYSE: KO) is the world’s largest beverage company, refreshing consumers with more than 500 sparkling and still brands. Aside for its namesake brand, its portfolio features 20 billion-dollar brands, including Diet Coke, Fanta, Sprite, vitaminwater, Powerade and Minute Maid.

Globally, the company is the top provider of sparkling beverages, ready-to-drink coffees and juices and juice drinks. Through the world’s largest beverage distribution system, consumers in more than 200 countries enjoy its beverages at a rate of more than 1.9 billion servings a day.

The strong U.S. dollar could continue to be a headwind to the international business, but the company has expanded the product line, and it posted fourth-quarter earnings that the Merrill Lynch team was very encouraged by.

Investors receive a 3.25% dividend. The $48 Merrill Lynch price target is higher than the consensus figure of $46.36. The stock closed Friday at $43.14.

Entergy

This higher yielding integrated energy company was recently upgraded at Merrill Lynch. Entergy Corp. (NYSE: ETR) is engaged primarily in electric power production and retail distribution operations. It owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including nearly 10,000 megawatts of nuclear power, making it one of the nation’s leading nuclear generators. Entergy delivers electricity to 2.8 million utility customers in Arkansas, Louisiana, Mississippi and Texas, and it has annual revenues of more than $12 billion.

Many analysts like the position of the company’s plants, as they supply some of the petrochemical industry along the Gulf Coast. Petrochemical plants and liquefied natural gas export facilities are springing up all across the region. For the petrochemical industry, the boom is driven by demand, not supply, and so the current lower gas prices actually help this growth trend, which has been a solid revenue silo for Entergy.

The company posted very solid earnings recently, and the guidance for the rest of the year was very good, despite some concerns over industrial sales. With a higher dividend than many of its peers, the company can be bought and put away for the long haul.

Entergy investors receive a 4.74% dividend. The Merrill Lynch price target is $78. The consensus target is $74.53 and the stock closed Friday at $71.74.

Procter & Gamble

This stock is still trading lower than this time last year, partly because it has a very large 65% of sales directed to foreign customers, which should improve as the dollar’s run looks to be slowing down. Procter & Gamble Co. (NYSE: PG) is a solid consumer staples stock especially for conservative investors to consider. The company sells lots of run-of-the-mill household items that are essential for everyday life, and it is not content to stand on its laurels.

The company 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.

The company posted very solid fourth-quarter results in January, and despite earning expectations that have been lowered somewhat, Merrill Lynch feels comfortable that the stock can continue the current positive momentum.

Shareholders receive a 3.27% dividend. Merrill Lynch has as $85 price target, while the consensus target is $83.10. Shares closed Friday at $81.10.

For worried investors that need an income stream, all these top stocks make good sense for growth and income portfolios. The total return potential is solid, and the downside risk is far less than momentum stocks. Plus, add in the still somewhat oversold status of the market, and the upside could be stellar for patient investors.

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