While interest rates have jumped dramatically recently, much of it has to do with market anticipation on what most experts feel will be a December rate hike by the Federal Reserve of one-quarter of a percentage point, or 25 basis points. In addition, most people on Wall Street feel the Fed will raise rates twice in 2017 and 2018. If the increases are the same that would put the fed funds rate at about 1.75% by 2019. Still historically way below normal.

For those looking to generate income, equities remain one of the best resources, and the fact that you can write covered calls on stock you own can also contribute. In fact, at most Wall Street firms, for retail accounts covered, call writing is the only options strategy that is approved.

We screened the Merrill Lynch research universe for stocks that pay a dividend in line with the current 10-year U.S. Treasury bond, had Merrill Lynch’s best volatility rating and were rated Buy. We found five that look like long-term winners.

AT&T

This company has had an incredible run this year but is off over 10% in less than six weeks. 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 its shares trading at a very cheap 14.3 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 is in the Merrill Lynch US 1 portfolio and has several major catalysts likely to drive strong network traffic demand: DirecTV Now and Mobile, “Data-Free TV” for DirecTV/U-Verse subscribers and increasing penetration of unlimited data plans. Many on Wall Street believe that the company is well-positioned to address ongoing traffic requirements, with additional LTE capacity available and the ability to leverage small cell deployments.

Other top Wall Street analysts have cited the company’s positive commentary on free cash flow and improving video/broadband trends later this year, with single truck-roll and new converged offerings expected to be coming next month.

AT&T investors receive a 5.04% dividend. The Merrill Lynch price objective is $46. The Wall Street consensus price target is $40.76. Shares closed Thursday at $38.88.

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.

Led by Coca-Cola, its portfolio features 20 billion-dollar brands, including Diet Coke, Fanta, Sprite, Coca-Cola Zero, vitaminwater, Powerade and Minute Maid. Globally, it 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 company reported third-quarter earnings that beat analysts’ estimates but blamed strong international headwinds and political uncertainty for lower revenue. Though net sales in the quarter fell 7% from a year earlier, they were higher than Wall Street estimate, helped by higher prices for sodas and a strong demand for water and sports drinks in North America. This did make seven-straight quarters that earnings surpassed Wall Street’s expectations.

It’s important to remember though that the company own 31.5% of Monster Beverage, which continues to deliver big numbers.

Coca-Cola investors receive a 3.5% dividend. Merrill Lynch has a $50 price target, while the consensus target is $46.72. The stock closed Thursday at $40.17.

Colgate-Palmolive

This top dividend payer is also a very safe play for investors and is a top stock to buy in consumer staples. Colgate-Palmolive Co. (NYSE: CL) manufactures and sells consumer products worldwide.

The company offers oral care products, including toothpaste, toothbrushes and mouthwashes, as well as pharmaceutical products for dentists and other oral health professionals; personal care products comprising bar and liquid hand soaps, shower gels, shampoos, conditioners and deodorants and antiperspirants; and home care products, such as laundry and dishwashing detergents, fabric conditioners, household cleaners and so on.

Colgate-Palmolive also provides pet nutrition products for everyday nutritional needs, a range of therapeutic products to manage disease conditions and various products with natural ingredients.

Principal global and regional trademarks include Colgate, Palmolive, Speed Stick, Softsoap, Irish Spring, Protex, Sorriso, Kolynos, Tom’s of Maine, Ajax, Axion, Fabuloso, Soupline and Suavitel, as well as Hill’s Science Diet, Hill’s Prescription Diet and Hill’s Ideal Balance.

Investors now receive a 2.4% dividend. The $80 Merrill Lynch price target compares with the consensus target of $76.81. Shares closed Thursday at $65.08.

DTE Energy

With the potential for a very cold winter on tap, this company may look to extend 2016 gains into next year. DTE Energy Inc. (NYSE: DTE) is a Detroit-based diversified energy company involved in the development and management of energy-related businesses and services nationwide.

The company’s operating units include an electric utility serving 2.1 million customers in Southeastern Michigan and a natural gas utility serving 1.2 million customers in Michigan. The DTE Energy portfolio includes non-utility energy businesses focused on power and industrial projects, natural gas pipelines, gathering and storage, and energy marketing and trading.

DTE recently declared an $0.825 per share dividend on its common stock payable. That is a 7.1% increase from the previous quarterly dividend and reflects the board’s confidence in the company’s growth plans. This hike continues DTE Energy’s consistent dividend history, having issued a cash dividend for more than 100 years.

DTE shareholders receive a 3.54% dividend. The Merrill Lynch price target for the stock is $99. The consensus estimate is $100.13. The stock closed at $93.81.

Eli Lilly

This is another company with substantial upside potential due to recent headline events. Eli Lilly and Co. (NYSE: LLY) is a global health care company with numerous core products in a number of primary-care pharmaceutical markets. The company generates revenues from its pharmaceutical product and animal health segments.

The product portfolio includes Zyprexa (for schizophrenia and bipolar disorder), Gemzar (pancreatic cancer), Evista (osteoporosis), Cymbalta (depression), Cialis (erectile dysfunction), Strattera (attention deficit hyperactivity disorder), Erbitux (cancer) and Alimta (chemotherapy). Eli Lilly also has a strong presence in the diabetes market.

The company posted third-quarter sales and earnings well below Wall Street’s expectations, prompting shares to plummet to a four-month low before rebounding. The stock is down almost 10% on the year and offering investors an outstanding entry point. Top analysts on Wall Street are still very focused on the company’s outstanding late-stage product pipeline, which they and others on Wall Street view as very undervalued.

Last week the company announced a disappointing Phase 3 trial for its Alzheimer’s drug solanezumab, which missed the primary and secondary endpoints. While the analysts are forced to remove potential earnings from their model due to the failure, they remain positive on the stock based on “Underappreciated growth, driven by the diabetes base business, baricitinib and abemaciclib.”

Shareholders receive a 3.1% dividend. Merrill Lynch recently lowered its target price to $90 from $105. The consensus target is $97.05, and shares closed Thursday at $65.97.

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These five top companies have all been around for years, have increased their dividends on a regular basis and remain very competitive in their respective sectors. They are just the kind of companies for a long-term retirement accounts looking to generate solid total return.

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