Consumer confidence – a key determinant of the economy’s health – surged during the month of August, indicating that the economy is on the recovery trail after a dismal show during the first half of the year. Still lower gasoline prices and a strong labor market have helped increase household wealth, which eventually boosted consumer spending.

Though there is enough evidence to suggest that the economy may rebound in the third quarter, we still remain concerned about the timing of the interest rate hike by the U.S. Federal Reserve, as well as Brexit aftershocks and other global growth issues. Moreover, the August manufacturing and services index readings were disappointing along with soft jobs data, which unnerved investors.

Amid this widespread uncertainty, investors must be wondering where to park their money. Therefore, target safe bets for now rather than going for stocks with high earnings growth potential (only).

The Winning Strategy: Investment in Dividend Stocks

In an erratic market, it is normal for investors to choose stocks that offer steady returns against their investment. Naturally, the spotlight falls on dividend stocks that offer stable income and are generally less volatile in nature. In unfavorable markets, these stocks shield investors’ portfolio like none other.

Historically, dividend-paying stocks have outperformed with respect to their long-term returns. Moreover, in a low interest rate environment, dividend paying stocks offer substantial yields on a regular basis.

Why Consumer Staple Stocks?

Surging consumer confidence and indications of a stronger economy in the second half of the year make the consumer staples sector attractive. Investing in consumer staples stocks is safer because of their defensive nature. In fact, consumer staple stocks have the potential to counter headwinds from Brexit aftershocks, the Federal Reserve’s still pending decision over the rate hike, impact of currency fluctuations and other global growth issues.

This is why it may be a good idea to pick consumer-related stocks at this point. However, selecting winning stocks may prove to be difficult.

With the help of our new style score system, we have identified four consumer staples stocks that pay high dividend yields and have an attractive Zacks Rank.

Dividend yield assesses the amount of income received in proportion to the share price. Amid the current volatility, it could be a smart strategy to buy stocks that yield good dividends, thus ensuring a steady income.

Thus, based on a solid Zacks Rank #1 (Strong Buy) or #2 (Buy), and dividend yields of more than 3%, we have zeroed in on four stocks that have bright prospects to ride out the impending volatility.

4 Prominent Picks to Buy Now

Philip Morris International, Inc. (PM Quick QuotePM - Free Report)

Philip Morris, the leading international tobacco company, has been increasing its dividend every year since it began paying dividends in 2008.

With a dividend yield of 4.13% and a beta value of 0.97, this Zacks Rank #2 stock seems an attractive pick. You can see the complete list of today’s Zacks #1 Rank stocks here.

Tupperware Brands Corporation (TUP Quick QuoteTUP - Free Report)

Tupperware Brands Corporation is a global direct seller of premium, innovative products across multiple brands and categories through an independent sales force.

This Zacks Rank #2 company yields a dividend of 4.30%.

A. H. Belo Corporation

Dallas, TX-based A. H. Belo Corporation is a distinguished newspaper publishing and local news and information company.

A.H. Belo is striving to align expenses with revenues, and consequently, it was able to post impressive second-quarter 2016 operating results.

With a high dividend yield of 4.85%, this Zacks Rank #2 stock appears to be a great buffer for your portfolio in uncertain markets.

Coca-Cola Amatil Limited

Based in North Sydney, Australia, Coca-Cola Amatil Limited, together with its subsidiaries, manufactures, distributes, and markets ready-to-drink beverages primarily in Australia, New Zealand, Fiji, Papua New Guinea, and Samoa.

This company has a great dividend yield of 4.12% along with a Zacks Rank #2.

Bottom Line

An intelligent selection of stocks for investment greatly benefits investors. The abovementioned stocks can prove to be valuable additions to your portfolio.

You can also use the Zacks Stock Screener to find other stocks with this winning combination. Investors can confidently end their search at stocks with a favorable Zacks Rank of either #1 or #2, which encompasses its strong fundamentals, promises price movement and highlights analysts’ constructive view on the same via positive estimate revisions. A sturdy portfolio always gives favorable returns.

Where Do Zacks' Investment Ideas Come From?

You are welcome to download the full, up-to-the-minute list of 220 Zacks Rank #1 ""Strong Buy"" stocks free of charge. There is no better place to start your own stock search. Plus you can access the full list of must-avoid Zacks Rank #5 ""Strong Sells"" and other private research. See the stocks free >>