Investing

Stock Market Volatility Could Skyrocket: Play It Safe With 4 Large Cap 6% Dividend Giants

Lee Jackson

Published: January 28, 2025 10:23 am

Last Updated: January 28, 2025 10:52 am

For two years, all we have heard is that Nvidia Corp. (NASDAQ: NVDA) is destined to rule the world. Money poured into the Nvidia shares, 3X leveraged ETFs took in millions of dollars, and everything the least bit AI-related was going to the moon. Then, a Chinese company called DeepSeek let the world know that they were just as good as ChatGPT, at a fraction of the cost, and every stock that was the least bit connected to the parabolic AI move higher was hammered. Nvidia dropped 16% in one day, utility stocks linked to the rise of AI data centers were scorched, with Vistra Corp. (NYSE: VST) falling almost 30%, and just like that, it seemed it was all over and we were doomed.

24/7 Wall St. Key Points:

• We are not surprised that the massive stock market run hit a wall, but not all is lost.
• The stock market hasn’t had a 10% correction since October of 2023.
• Now is the time to be careful and make some portfolio moves.
• Is your portfolio tech-heavy and potentially in trouble? Why not see a financial advisor near you and see if you could be vulnerable to a big sell-off? Click here to get started finding one today. (Sponsored)

Every once in a while, investors run into what is called tail-risk after a huge market move higher. Tail risk is the possibility that an asset’s value will change more than three standard deviations from its current price. It’s also known as “fat tail risk.” Some examples many long-time investors remember well are the 9/11 attacks, the Japanese tsunami, the 1987 stock market crash, the collapse of Lehman Brothers, and the financial crisis of 2008-2009. The surprise AI DeepSeek competition from China could be a tail risk event, but only time will tell.

One thing is sure: worried investors should take some risk off the table and move some of their high-risk capital to safer, large-cap dividend stocks that are not dependent on how much generative artificial intelligence will or will not change the world as we know it. We screened our 24/7 Wall St. large-cap dividend research database, looking for stocks that pay a 6% or higher dividend and offer shelter from the market volatility storm. We found four great ideas, all rated Buy at top Wall Street firms.

Why do we cover large-cap dividend stocks?

Dividend stocks provide investors with reliable streams of passive income. Passive income is characterized by its ability to generate revenue without requiring the earner’s continuous active effort, making it a desirable financial strategy for those seeking to diversify their income streams or achieve financial independence.

Altria

This tobacco company offers value investors a great entry point and a rich 7.84% dividend. Altria Group Inc. (NYSE: MO) manufactures and sells smokable and oral tobacco products in the United States through its subsidiaries.

The company provides cigarettes primarily under the Marlboro brand, as well as:

• Cigars and pipe tobacco, principally under the Black & Mild brand
• Moist smokeless tobacco and snus products under the Copenhagen, Skoal, Red Seal, and Husky brands
• on! Oral nicotine pouches
• e-vapor products under the NJOY ACE brand

It sells its tobacco products primarily to wholesalers, including distributors and large retail organizations, such as chain stores.

Altria used to own over 10% of Anheuser-Busch InBev S.A. (NYSE: BUD), the world’s largest brewer. Last year, the company sold 35 million of its 197 million shares through a global secondary offering. That represents 18% of its holdings but still leaves 8% of the outstanding shares in its back pocket. Altria also announced a $2.4 billion stock repurchase plan partially funded by the sale.

BP

This company is a premier European integrated oil giant that pays shareholders a hefty 6.10% dividend. BP PLC (NYSE: BP) engages in the energy business worldwide.

It operates through these segments:

• Gas & Low Carbon Energy
• Oil Production & Operations
• Customers & Products
• Rosneft

BP produces and trades natural gas, offers biofuels, operates onshore and offshore wind and solar power generating facilities, and provides de-carbonization solutions and services, such as hydrogen and carbon capture, usage, and storage.

The company is also involved in the convenience and mobility business, which manages the sale of fuels to wholesale and retail customers, convenience products, aviation fuels, and Castrol lubricants; refining, supply, and trading of oil products; and operation of electric vehicle charging facilities.

In addition, it produces and refines oil and gas and invests in upstream, downstream, and alternative energy companies, advanced mobility, bio and low-carbon products, carbon management, digital transformation, and power and storage areas.

Dow

This company was recently removed from the Dow Jones industrial average and offers investors growth and income potential with a huge 6.77 % dividend. Dow Inc. (NYSE: DOW) is a leading materials science company formed by the merger of Dow and DuPont in 2017 and subsequent spin in 2019.

The company is organized into three principal divisions:

• Performance Materials & Coatings
• Industrial Intermediates & Infrastructure
• Packaging & Specialty Plastics

The company’s segments include Agricultural Sciences, which provides crop protection, seed/plant biotechnology products and technologies, urban pest management solutions, and healthy oils.

Consumer Solutions, which consists of:

• Consumer care
• Dow Automotive Systems
• Dow Electronic Materials
• Consumer Solutions-Silicones businesses

Infrastructure Solutions, which consists of:

• Dow Building & Construction
• Dow Coating Materials
• Energy & Water Solutions
• Performance Monomers and Infrastructure Solutions-Silicones businesses
• Performance Materials & Chemicals consists of Chlor-Alkali and Vinyl, Industrial Solutions and Polyurethanes businesses
• Performance Plastics, which consists of Dow Elastomers, Dow Electrical and Telecommunications, Dow Packaging and Specialty Plastics
  Energy and Hydrocarbons business

Verizon

This top telecommunications company offers tremendous value, trading at 8.75 times estimated 2025 earnings and paying investors a strong 6.92% dividend. Verizon Communications Inc. (NYSE: VZ), through its subsidiaries, provides communications, technology, information, and entertainment products and services to consumers, businesses, and governmental entities worldwide. The company posted very solid fourth-quarter results.

It operates in two segments:

• Verizon Consumer Group
• Verizon Business Group

The Consumer segment provides wireless services across the wireless networks in the United States under the Verizon and TracFone brands and through wholesale and other arrangements.

It also provides fixed wireless access (FWA) broadband through its wireless networks and related equipment and devices, such as:

• Smartphones
• Tablets
• Smartwatches and other wireless-enabled connected devices

The segment also offers wireline services in Mid-Atlantic, including the District of Columbia, and Northeastern United States through its fiber-optic network, Verizon Fios product portfolio, and a copper-based network.

The Business segment provides wireless and wireline communications services and products, including:

• FWA broadband
• Data
• Video and conferencing
• Corporate networking
• Security and managed network
• Local and long-distance voice

Network access services to deliver various IoT services and products to businesses, government customers, and wireless and wireline carriers in the United States and internationally.

Four High-Yield Stocks With 7% and Higher Dividends Are 2025 Home Runs