Dividend Stocks Shine Amidst Market Volatility

With a bumpy start to 2025, quality stocks that have reliable dividends could become more appealing. The first trading day of the new year marked a volatile session for stocks, with all three major averages finishing yet another session in the red on Thursday after starting off the day with gains.

The S&P 500 and Nasdaq Composite have now declined for five consecutive sessions – their longest losing streaks since April – while the Dow Jones Industrial Average has dropped for its fourth session in a row. Against this market backdrop, UBS screened for stocks that look high quality relative to their peers and are unlikely to cut the dividends they currently pay. Notably, the firm forecasts a 22.9% probability of a dividend cut across regions and sectors, saying that the U.S. 'continues to be the safest region for dividends' with the probability of a dividend cut at 6.2%. On top of that, most U.S. sectors look 'relatively safe.' Additionally, Japan is considered the 'most preferred region' for dividend growth, having a forecast growth rate of 9.9%. By contrast, dividend growth prospects in the Pacific region, excluding Japan, as well as Europe are negative. Below are a few names on UBS' global high-quality dividend stock list. Exxon Mobil made the screen, having a dividend yield of 3.7%. The energy giant returned $9.8 billion to shareholders in the third quarter and increased its dividend for the fourth quarter to 99 cents per share. A majority of analysts on Wall Street are also bullish on the name. Among the 29 analysts covering it, 17 have a strong buy or buy rating, while 11 have a hold rating, according to LSEG data. Its average price target of nearly $130 implies about 21% upside from Thursday's close. This comes as Exxon has officially entered the race to power data centers for artificial intelligence. Last month, the company announced that it's planning to build a natural gas plant to power a data cente

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