Morgan Stanley highlights strong dividend stocks for uncertain markets

Morgan Stanley highlighted several companies that are raising payouts to help investors navigate market volatility. In an August report, Morgan Stanley strategist Todd Castagno noted that stocks outpaced the broader market by an average of 3.1% in the six months following a dividend hike.

His team screened the Russell 1000 index for companies that boosted dividends by at least 15% quarter over quarter during the past 12 months. The screen featured East West Bancorp, Packaging Corporation of America, and Devon Energy, alongside Nvidia, Royal Caribbean, and Capital One Financial.

California-based East West Bancorp lifted its quarterly dividend by 20 cents to 80 cents per share in January, carrying a 2.4% yield and a 16% gain in 2026. Packaging Corporation of America increased its quarterly dividend by 20% in May to an annual $6 per share, yielding 2.5% after a 15% advance this year.

On 4 September 2026, Morgan Stanley analyst Devin McDermott identified Devon Energy as the bank's favorite oil exploration and production play as oil approaches $100 a barrel. Devon's board approved a 33% dividend raise to 32 cents per share in May, and the stock is up 31% year to date with a 2.3% yield.