ClearBridge highlights dividend stocks to cushion market volatility

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ClearBridge dividend stocks guide

Highlights

Blackstone shares, down over 23% year to date and yielding 4.25%, were added to ClearBridge's SOPAX fund as Clarfeld cites mispriced software exposure risk.
Clarfeld bought Otis Worldwide, yielding 2.4% and down nearly 21% this year, which FactSet estimates have 34.5% upside due to its stable elevator maintenance segment.
ClearBridge Dividend Strategy Fund focuses on high-quality dividend growers like Williams Companies, Microsoft, Alphabet, and Exxon Mobil, maintaining a 1.99% yield amid rising inflation and S&P 500 volatility.

Dividend strategy and recent stock picks

As reported by CNBC, Clarfeld says dividends are especially valuable after the strong run-up in equities because they provide a more predictable component of total return and can help limit downside in volatile markets. He argues that dividend growth remains an important hedge against sticky inflation, citing the Commerce Department's latest data showing the personal consumption expenditures price index rose 3.8% in April, and 3.3% excluding food and energy.

Clarfeld manages the ClearBridge Dividend Strategy Fund, ticker SOPAX, which focuses on high-quality companies with attractive or improving dividend profiles. The four-star Morningstar-rated fund currently yields 1.99% and carries a 1% expense ratio, while its top holdings include The Williams Companies, Texas Instruments, Microsoft, Alphabet, Broadcom, Exxon Mobil and Apollo Global Management.

Among the names he recently added is Blackstone, a former holding he sold after it reached full valuation. Shares are down more than 23% year to date, but Clarfeld sees pressure tied to software exposure concerns and broader private credit worries as a buying opportunity; he notes that Blackstone is a diversified alternative asset manager with major real estate exposure, not just a private credit play. FactSet data cited in the report show the stock carries an average analyst rating of overweight, 21.5% upside to the average price target and a 4.25% dividend yield.

Clarfeld also recently bought Otis Worldwide and Marsh. Otis, which yields 2.4% and is down nearly 21% this year, is viewed by Clarfeld as a high-quality industrial business tied to what he calls the HALO trade, heavy assets, low obsolescence, because elevator maintenance demand is unlikely to be disrupted by AI; FactSet data show 34.5% upside to the average price target. Marsh, down 13% year to date with a 2.2% dividend yield, is seen as an attractive insurance broker because it does not assume underwriting risk directly, and Clarfeld says investor fears over industry softness and AI disruption have pushed the stock to a compelling valuation of 16 times earnings.

Volatility and inflation keep income investing in focus

The case for dividend stocks is unfolding as broader markets continue to navigate cross-currents from elevated valuations, inflation and geopolitical risk. The S&P 500 reaches a fresh record on Monday even as oil jumps on concerns related to the Iran war, underscoring the uneven backdrop facing equity investors.

Clarfeld says diversification remains central to making a dividend portfolio resilient through swings in sentiment and sector-specific shocks. His approach balances risk control with selective opportunities in areas where high-quality companies have sold off, suggesting that income-focused investors may still find value even after the market's broader advance.

In our earlier article on Broadcom (AVGO), we examined the stock’s strong bullish momentum ahead of its fiscal Q2 2026 earnings and the added catalyst from its AI-integrated broadband chip launch. We also outlined key technical levels and the near-term trading range to watch, noting that overbought signals could lead to consolidation while support areas remain pivotal for the uptrend.

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