Here Are Five Income-producing Stocks to Buy in the Second Half of the Year

Rising uncertainty in the markets and signs of slowing economic momentum have led many investors to seek the relative safety of dividend-paying stocks. These shares offer a dependable stream of income that can help cushion portfolios during periods of volatility.

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Last week, markets initially dipped on renewed tensions between Israel and Iran, only to recover modestly by Friday after the Federal Reserve held interest rates steady at its June policy meeting. Still, fresh concerns have emerged after reports surfaced that the U.S. carried out airstrikes on three Iranian nuclear sites over the weekend, raising the possibility of renewed market swings.

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In this unstable environment, income-generating stocks appear attractive—but not all dividend stocks are created equal. Investors need to be selective, focusing on companies that not only offer solid yields but also show the potential for capital appreciation.

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To help identify standout names for the second half of the year, CNBC Pro conducted a screen of the ProShares S&P 500 Dividend Aristocrats ETF, which includes companies that have increased their dividend payouts for at least 25 consecutive years. The screen applied three key criteria:

1. At least 51% of Wall Street analysts covering the stock must rate it a "buy."
2. The average analyst price target, according to FactSet, must imply at least 10% upside.
3. The stock must offer a dividend yield of at least 1.5%, above the S&P 500 average of roughly 1.29%.

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To ensure strong institutional coverage, each company also had to be followed by at least ten analysts. Based on these filters, five companies emerged as top picks: AbbVie, Coca-Cola, Lowe’s, Nucor, and Procter & Gamble. Together, these Dividend Aristocrats offer both income and potential upside, making them attractive for long-term investors navigating a volatile landscape.

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AbbVie (Healthcare)

AbbVie leads the healthcare group, offering a dividend yield of 3.5%—well above the market average. About 53% of analysts rate the stock a “buy,” with a 15% upside to the average price target. The stock is up 4% so far this year.

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Despite a recent setback in a blood cancer trial for its drug Venclexta, the company posted strong first-quarter results, beating earnings and revenue expectations. Management raised full-year guidance and reported promising data on its migraine drug Qulipta.

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AbbVie is also investing over $10 billion in new U.S. manufacturing facilities. While sales of its former blockbuster Humira have declined post-patent expiration, newer immunology treatments Skyrizi and Rinvoq are gaining traction and are expected to drive future growth.

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Coca-Cola (Consumer Staples)

Coca-Cola boasts a dividend yield of 2.9%, a 69% buy-rating among analysts, and a 14% potential upside. The beverage giant exceeded earnings estimates in April and reaffirmed its 2025 outlook.

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CEO James Quincey acknowledged potential short-term trade disruptions from rising tariffs but described them as “manageable.” While consumer sentiment has weakened, spending levels remain steady. With its global distribution, defensive product mix, and pricing power, Coca-Cola’s stock has climbed nearly 11% in 2025.

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Lowe’s (Consumer Discretionary)

Lowe’s presents a 2.3% yield and 25% upside to the average analyst price target, with 53% of analysts rating it a “buy.” However, shares are down 14% this year amid higher mortgage rates and a cooling housing market.

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Still, CEO Marvin Ellison expressed optimism during the May earnings call, highlighting continued investments in store upgrades, customer service, and digital tools. The company reaffirmed its full-year forecast, betting on continued demand for smaller home improvement projects even as large-scale renovations slow.

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Nucor (Materials)

Steelmaker Nucor offers a 1.8% dividend yield and is rated a “buy” by 69% of analysts, with a projected 13% upside. The company has benefited from strong U.S. infrastructure spending and disciplined production expansion, which has helped sustain steel prices.

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Nucor is also advancing into low-carbon steel technologies, aligning with growing demand for sustainability in construction. Its strong balance sheet provides flexibility for share buybacks or strategic acquisitions if demand remains robust.

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Procter & Gamble (Consumer Staples)

Procter & Gamble rounds out the group with a 2.7% dividend yield and a 60% buy-rating. The average price target suggests an 11% gain from current levels.

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The consumer goods giant has successfully passed along higher input costs to consumers through premium product lines, while maintaining or growing market share in key categories. With a wide portfolio—including brands like Tide and Gillette—and global reach, P&G generates reliable cash flow that supports its long record of dividend increases.

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Conclusion

These five Dividend Aristocrats—AbbVie, Coca-Cola, Lowe’s, Nucor, and Procter & Gamble—combine dependable income with meaningful upside potential. In an environment shaped by geopolitical uncertainty, shifting interest rate expectations, and unresolved tariff disputes, these companies offer investors a balanced way to stay engaged in the market without taking excessive risks.

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For those seeking consistency amid chaos, dividend stocks with strong fundamentals and analyst support may serve as the foundation for a more resilient portfolio in the months ahead.

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