In a week in which the first-quarter earnings onslaught begins, one question facing many investors is a simple one. Are stocks overvalued at current levels? One thing is for sure, any companies that don’t deliver on expectations will be summarily taken to the proverbial woodshed. One smart idea now may be to take some profit off the table, especially on momentum stocks, and move to value.

Each week the analysts at Jefferies come out with their top value stock ideas and this week’s selections are not only solid ideas, but also pay outstanding dividends. In a continuing low interest rate world, the total return provided by yield-paying stocks makes good sense. These three stocks are rated Buy at Jefferies.

Chevron

This is very solid story for investors looking to stay long the energy sector, and it’s a preferred U.S. company to own now. Chevron Corp. (NYSE: CVX) is an integrated oil and gas company with worldwide operations in exploration and production, refining and marketing, transportation and petrochemicals. The company sports a sizable dividend and has a solid place in the sector when it comes to natural gas and liquefied natural gas (LNG). Some Wall Street analysts estimate the company will have a compound annual growth rate of over 5% for the next five years, and the stock trades at a modest valuation discount to some of its mega-cap peers.

The company’s Permian Basin assets are a goldmine, and that the Australian LNG business will transition from a yearly $8 billion capital consumption drag to a $2 billion to $3 billion contributor. Combined with the much lower overall capital spending for the 2016 to 2018 period, the company is poised to not only hang around, but end the sector slump in a much better position. The analysts note the Permian acreage is profitable at $40 a barrel.

The Jefferies team point out in their research that they hosted a meeting with the company’s CEO, John Watson, who made it clear that preserving the dividend for investors is the top priority. They also noted that although the company trades in line with its peers, the growth potential and solid balance sheet deserve a 10% premium.

Chevron investors receive a 4.4% dividend. The Jefferies price target for the stock is $110. The Thomson/First Call consensus target is set at $98.34. Shares closed trading on Tuesday at $97.50.

CrossAmerica

The Jefferies team initiates coverage on this master limited partnership (MLP) with a Buy rating. CrossAmerica Partners L.P. (NYSE: CAPL) is a leading wholesale distributor of motor fuels and owner and lessee of real estate used in the retail distribution of motor fuels. Its general partner, CrossAmerica GP, is a wholly owned subsidiary of CST Brands, one of the largest independent retailers of motor fuels and convenience merchandise in North America.

Formed in 2012, CrossAmerica Partners is a distributor of branded and unbranded petroleum for motor vehicles in the United States and distributes fuel to more than 1,250 locations and owns or leases more than 800 sites. With a geographic footprint covering 29 states, the Partnership has well-established relationships with several major oil brands, including Exxon Mobil, BP, Shell, Chevron, Sunoco, Valero, Gulf, Citgo and Marathon. CrossAmerica Partners ranks as one of Exxon’s largest distributors by fuel volume in the United States and in the top 10 for additional brands.

Jefferies expects that 2016 will be a rebound year for the company and believes that the company can produce 5% distribution growth.

CrossAmerica shareholders are paid a very rich 9.68% distribution. Jefferies has a $29 price target, and the consensus target is $28.22. The shares closed most recently at $24.49.

Pfizer

This top pharmaceutical stock recently was added to the Merrill Lynch US 1 list. Pfizer Inc. (NYSE: PFE) has a very strong pipeline, and being the world’s largest drug manufacturer by sales value supports the Wall Street notion that the company can generate higher long-term revenues through the accelerated growth of its new drugs over the next five years.

The U.S. Treasury Department has announced new rules for corporate tax inversions, which effectively scuttled the deal with Allergan. With the deal over, not only are the risk arbitrage funds buying the stock back, which some felt was as much as a $5 weight on the stock, but the Jefferies analysts feel that investors can once again focus on the sum-of-the-parts story, which they feel is compelling.

Pfizer has announced that it is starting 20 clinical trials this year, and more soon after, on treatments to conquer cancer, as it also seeks to gain leadership in one of the hottest and most lucrative areas of medicine. Hedge funds seem to like the stock as a total of 22 own it now.

Pfizer investors receive a 3.75% dividend. The $39 Jefferies price target is higher than the consensus target of $38.05. Pfizer closed most recently at $31.96.

Three solid values companies that all pay outstanding dividends make good sense for wary investors now. Even if these stocks trade sideways or slightly down in the near term, investors will be paid well to sit and wait for a move higher.

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