Morgan Stanley’s top picks for high dividend-paying industries
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Morgan Stanley in its 2023 Dividend Playbook on Wednesday selected its top stock picks for high dividend-paying industries, chosen by its bottom-up analysts.
These are stocks that combine yield, growth, and stability measures and look attractive on a three to five-year basis from a dividend yield perspective.
The top three picks were selected by MS analyst David Arcaro (all overweight): DTE Energy (DTE), with a 2024 dividend yield of 3.8%; Exelon Corp. (EXC), with a 2024 dividend yield of 3.7%; and Nextera Energy Inc. (NEE), with a 2024 dividend yield of 3%.
Followed by Verizon Communications Inc. (VZ), picked by Simon Flannery, and yielding a dividend of 8%; M&T Bank Corp. (MTB), picked by Manan Gosalia, and yielding 4.3%; and Regions Financial Corp. (RF), yielding 5.6%. 
Other picks include (ET), (MPLX), (EPD), (O), (ADC), (GLPI), (SPG), (PM), (MDLZ), (UDR), (INVH), (XOM), (HES), (LNG), (CL), (CHD), and (PG).
Similarly, the brokerage published forecasts for systematic top dividend picks âto ownâ by running a quantitative screen that optimized total returns and risk-rewards among dividend paying stocks. 
The top picks are Royalty Pharma Plc (RPRX), with a total expected return of 85%; AES Cop. (AES), with a total expected return of 74%; Crown Castle Corp. (CCI), with a total expected return of 61%; and L3Harris Technologies Inc. (LHX), with a total expected return of 59%.
In the same context, the top picks âto avoidâ are Vornado Realty Trust (VNO), with a total expected return of -48%; United Parcel Service (UPS), with a total expected return of -33%; Sonic Automotive Inc. (SAH), with a total expected return of -30%; and C.H. Robinson Worldwide Inc. (CHRW), with a total expected return of -26%.
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