Traders making ready for an financial slowdown might like dividend-paying shares, however they need to be particular with their technique, based on Wolfe Analysis. Dividend-paying names are normally seen as safety throughout downturns. The U.S. financial system is slowing, however economists are blended on whether or not they suppose there can be a recession subsequent 12 months. In a late-cycle setting, dividend progress turns into scarce and buyers are inclined to pay up for names with these revenue prospects, Wolfe’s chief funding strategist Chris Senyek identified in a be aware to shoppers final week. The most effective long-term dividend progress technique is to purchase shares that provide a mixture of excessive dividend progress and excessive free money stream yield, the strategist stated. “Traditionally, this cohort of shares has outperformed by 500+ foundation factors yearly,” he stated. “Moreover, this mix performs very properly in later cycle/recessionary environments.” Listed here are 10 names that Wolfe likes for his or her excessive dividend progress and free money stream yields. CVS Well being’ s inventory could also be having a tricky time, with shares off greater than 3% previously month. Nevertheless, revenue buyers are being rewarded with its 3.6% yield. The pharmacy big has a dividend progress of 10% during the last 12 months, Wolfe stated. CVS’ third-quarter adjusted earnings and income beat Wall Road’s expectations, 1 / 4 after the pharmacy chain kicked off a cost-cutting program that eradicated 5,000 jobs. The job cuts have been largely company ones, CEO Karen Lynch informed CNBC . “It was actually to realign the corporate in order that we are able to focus our initiatives on our technique of health-care supply and know-how and we’re persevering with to rent in these areas,” she stated in an Nov. 8 interview on ” Squawk on the Road .” Kroger ‘s inventory has additionally stumbled this previous 12 months, with shares down about 6% previously 12 months. Nonetheless, however is giving buyers a 2.6% yield. It has dividend progress of 20% during the last 12 months. In September, the grocery retailer posted a beat on adjusted earnings however missed on income for its fiscal second quarter. Chip shares additionally made the reduce, together with NXP Semiconductors , Skyworks Options and Qualcomm . NXP Semiconductors, for example, has a 2% dividend yield and last-twelve-months dividend progress of 32%. It has a 6% estimated free-cash-flow yield for 2024. In the meantime, Qualcomm has a 6% estimated free-cash-flow yield for 2024 and 9% last-twelve-months dividend progress. The corporate, which has a 2.5% dividend yield, just lately beat on quarterly adjusted earnings and income. Qualcomm additionally gave a powerful forecast for the present quarter. — CNBC’s Michael Bloom contributed reporting.