Investors can nab attractive dividends with these high-quality stocks

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Stock Markets,Home Depot Inc,Exxon Mobil Corp

UBS screened for dividend-paying stocks that are high quality.

Investors searching for dividend-paying stocks in this market don't have to sacrifice quality. In fact, there are several companies that have strong balance sheets and good management, as well as a stable dividend with growth potential, according to a note from UBS last week. Those dividends may begin to look more attractive to investors as the Federal Reserve starts cutting interest rates. Bond yields will also move lower, which could have investors seeking income elsewhere.

In May, Exxon acquired Pioneer Natural Resources in a deal valued at $59.5 billion. The company said the acquisition more than doubles its production in the Permian Basin. Meanwhile, oil market analysts are forecasting a tighter market in the third quarter. "With oil inventories beginning to decline as a result of solid demand and constrained supply growth, investors have started to build oil exposure again," Giovanni Staunovo, commodity analyst at UBS, wrote in a note Thursday.

 

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