Investors have been left scrambling to find cover this year as the prospects of a recession grow. Citigroup on Wednesday said it sees a 50-50 chance of a global economic recession , citing a pullback in consumer spending. Goldman Sachs, meanwhile, said Tuesday that there’s a 30% probability of the U.S. entering a recession over the next 12 months . That’s up from a previous forecast of 15%. Recession concerns have knocked the broader market this year, with the S & P 500 entering a bear market last week — down more than 20% from a record high set in January. That said, there are some stocks that may be well equipped to navigate this volatile period and which also pay hefty dividends. To find them, CNBC Pro screened for S & P 500 stocks that met the following criteria: Cash on hand greater than $1 billion Dividend yield above the 10-year Treasury note (which traded at about 3.2% on Wednesday) Earnings per share expected by analysts to grow over the next 12 months Total debt as a percentage of equity of 85% or less The data used comes from FactSet. Take a look at the 18 stocks that made our list: Several energy stocks made the list, including giants Exxon Mobil and Chevron . Exxon Mobil, ahead 46% in 2022, sports a dividend yield of 3.8% and has just 31.5% debt relative to equity. The company’s cash of $6.8 billion is also the third-highest of any name that made the cut. Chevron, meanwhile, is up 29% this year and yields 3.6%; it also has just 25.1% total debt to equity and its cash hoard is just under $6 billion. Electric utility PPL has the highest dividend yield on the list at 5.6%. However, the company’s debt relative to equity is the highest among the names that made the cut at 82.2%. PPL shares are down 13% this year, outperforming the S & P 500’s 20% decline. Hewlett Packard also made the list, offering a yield of 3.5% and debt to equity of 73% along with a cash hoard of $4.3 billion. The tech stock has struggled this year, falling 12.4%, though that’s still outperforming the S & P 500’s 20% decline. Evercore ISI highlighted HPE in a note Sunday as a stock that “should offer better downside protection in the event of a recession.” Asset manager T. Rowe Price made the cut as well, with a dividend yield of 4% and debt to equity of just 2.8%. The company also holds more than $1.5 billion in cash. T. Rowe shares have struggled this year, falling more than 43%. Exchange operator CME Group also met the screen’s criteria, yielding 3.3% with a debt relative to equity of just 14.7%. The company also has $2.83 billion in cash. Atlantic Equities upgraded the stock to overweight earlier this month, saying CME was due for a comeback as the Federal Reserve raises rates . Other names on our list are: Prudential Financial , Franklin Resources , Kraft Heinz , Invesco , Phillips 66 , Principal Financial , Intel , Lincoln National , Newmont , Cisco Systems , Valero Energy and Pfizer . Tune into CNBC’s “ExxonMobil at the Crossroads” documentary at 8 p.m. ET Wednesday.
Stocks such as Exxon Mobil and Hewlett Packard pay hefty dividends and could weather a recession