It’s absolutely no secret that interest rates will continue higher in 2018, and investors can expect at least three rate hikes of 25 basis points or one-quarter of 1%, and maybe even four if the economy continues to grow. Despite this baked-in knowledge, Treasury bill and bond rates continue to hover at generational lows. Does the bond market know something we don’t? Perhaps, but one thing is for sure, dividend paying stocks will still be a great bet for investors in 2018.

We screened the Merrill Lynch research database looking for stocks that were dividend paying, and had a Buy rating. We found six that look like great picks for investors concerned with a pricey market and looking for total return.

Altria

The maker of tobacco products and wine has posted very solid numbers throughout the year, and the fourth quarter is looking good as well. Altria Group Inc. (NYSE: MO) is a top mega-cap consumer discretionary stock to buy on Wall Street, and the company’s 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 along with strong share repurchase activity. The board also raised the dividend by 8.2% in 2017.

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.

Altria investors receive a 3.64% dividend. The Merrill Lynch price target for the shares is $78, and the Wall Street consensus estimate is $72.92. The stock traded early Thursday at $71.75.

Exxon

This stock remains a top Wall Street energy pick though it is still down over 10% in 2017. Exxon Mobil Corp. (NYSE: XOM) is the world’s largest international integrated oil and gas company. It explores for and produces crude oil and natural gas in the United States, Canada, South America, Europe, Africa and elsewhere.

The company also manufactures and markets commodity petrochemicals, including olefins, aromatics, polyethylene and polypropylene plastics, and specialty products, and it transports and sells crude oil, natural gas and petroleum products.

For 75 years in a row, Exxon has raised its dividend on a split-adjusted basis. Thanks to the company’s vertically integrated model in the oil and gas business, its profitability doesn’t suffer through commodity price swings like a company that’s a pure play in one segment of the value chain.

Shareholders receive a 3.67% dividend. Merrill Lynch has a $90 price objective, while the consensus target is $86.50. The stock traded at $84.00 Thursday morning.

Coca-Cola

This top Warren Buffet holding not only offers safety but an incredible strong worldwide brand with 40% overseas sales. 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, one of the world’s most valuable and recognizable brands, the company’s portfolio features 20 billion-dollar brands including Diet Coke, Fanta, Sprite, Coca-Cola Zero, vitaminwater, Powerade, Minute Maid, Simply, Georgia and Del Valle. Globally, it is the number one 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 Coca-Cola beverages at a rate of more than 1.9 billion servings a day. With coolers getting packed for picnics, parades and vacations you can bet that they will be stuffed with products from this iconic American company. Also remember that the company also owns 16.7% of Monster Beverage, which continues to deliver big numbers.

Investors receive a 3.22% dividend. The $52 Merrill Lynch price target compares with a $49.06 consensus target. The stock was last seen at $45.95 a share.

3M

This top industrial could really jump with an economic pickup in 2018, and only 19% of mutual funds currently hold the stock. 3M Co. (NYSE: MMM) is a diversified, global manufacturer. Its businesses are technology-driven and organized under five segments: Consumer, Safety and Graphics, Electronics and Energy, Healthcare, and Industrial. Its popular brands include Scotch, Post-It, 3M and Thinsulate. The company also holds over 500 U.S. patents.

The company announced in October that it has completed its acquisition of Scott Safety from Johnson Controls for a total enterprise value of $2.0 billion. Scott Safety is a premier manufacturer of innovative products, including self-contained breathing apparatus (SCBA) systems, gas and flame detection instruments, and other safety devices that complement 3M’s personal safety portfolio.

3M’s Personal Safety Division provides respiratory, hearing and fall protection solutions that help improve the safety and health of workers. The business also supplies products and solutions in other safety categories, such as head, eye and face protection, as well as reflective materials for high-visibility apparel and protective clothing.

Shareholders receive a 2% dividend. The Merrill Lynch price target is $257. The consensus target is $224.62, and shares were trading at $236.45.

Procter & Gamble

This stock also offers a very solid dividend and safety. Procter & Gamble Co. (NYSE: PG) is another solid consumer staples stock for conservative investors to consider. It sells lots of very well-known household items that are essential for everyday life. Brands include Pampers, Tide, Bounty, Charmin, Gillette, Oral B, Crest, Olay, Pantene, Head & Shoulders, Ariel, Gain, Always, Tampax, Downy and Dawn.

P&G actually 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 earnings and projections, a weaker dollar scenario would bode well for the future. The analysts noted this when the company reported third-quarter results:

The company reported roughly in-line results despite challenges in the quarter with a slight operating profit miss offset by below-the-line items. We maintain our fiscal year 2018 estimated EPS of $4.16 vs management’s unchanged guidance of +5-7% (implies $4.12-4.19) on organic sales of approx +2%.

Shareholders receive a 3.0% dividend. Merrill Lynch has set its price objective at $100. The consensus estimate is $93.53, and shares last seen at $92.40.

Walmart

The giant retailer’s stock has performed well as a top holiday play and is on the Merrill Lynch US 1 list. Wal-Mart Stores Inc. (NYSE: WMT) is the world’s largest retailer, operating retail stores in various formats, including Sam’s Club, in the United States as well as a growing e-commerce business (including Jet.com). Internationally Walmart also operates locations in Argentina, Brazil, Canada, China, Japan, Mexico and the United Kingdom.

Each week, nearly 260 million customers and members visit the company’s 11,535 stores under 72 banners in 28 countries and e-commerce websites in 11 countries. With fiscal year 2016 revenue of $482.1 billion, Walmart employs approximately 2.2 million associates worldwide.

Earlier this year the company announced a massive $20 billion stock repurchase plan that was met with open arms by Wall Street. Many think it is in an effort to ward off potential activist investors. Most shareholders could care less and are thrilled by the buyback.

Shareholders receive a 2.06% dividend. The Merrill Lynch price target of $120 is well above the consensus target of $101.33. Shares traded at $99.40.

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Despite the constant Wall Street bullishness, the market needs a breather, and a 5% sell-off would provide just that. These six top stocks rated Buy all pay good dividends and raise them almost every year. They also offer a degree of safety in what is clearly a very expensive market by historical standards. With the markets grinding higher and expensive, playing it safe makes sense now and may really make sense in 2018.

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