As equity markets have yet to recover from the doldrums of a brutal first-half sell-off, investors are increasingly looking for strategies to preserve and grow their capital. Money manager Jack Ablin tells CNBC how he trades market volatility, while highlighting some of his top stocks. Investors should put their money in companies with quality balance sheets, strong and consistent dividends that are “trading at a significant discount to the rest of the market,” according to Ablin, founding partner and chief investment officer at Cresset Capital. His portfolio of “quality and dividend growth companies” includes Exxon Mobil and Chevron in the energy space, and Coca-Cola and McDonalds in the consumer space. “These are companies that are dividend winners or Dividend Aristocrats that have a 25-year history of maintaining and growing their dividends,” Ablin told CNBC’s Squawk Box Asia on Thursday. Exxon Mobil and Chevron shares are up 36.1% and 20% respectively this year, helped by rising oil prices. But Ablin believes the stock still looks cheap compared to its peers. “Chevron trades a forward, for example [ price-to-earnings ratio ] of about 8 with a nice 4% dividend yield, which has also been fairly consistent — this is a company that has maintained and grown its dividend over time,” he said. “Exxon is similarly positioned with an expected P/E ratio [of about] 11,” he added. The company has a 4.2% dividend yield, according to FactSet data. Ablin said both stocks are currently “trading at a pretty significant discount to the rest of the market.’ Next four quarters’ Looking at the Future Ablin said, “Quality and dividends are probably the right place for the next four quarters.” Traits including low debt, stable earnings, and consistent asset growth. Meanwhile, dividend stocks are also gaining popularity as investors switch to stocks that offer relative safety and higher yields. Ablin also believes FAANG stocks are “come back in vogue” , once the pandemic is over. The FAANG grouping refers to the shares of five major tech companies: Facebook parent Meta, Amazon, Apple, Netflix and Google parent Alphabet. Continue reading “Dividend Aristocrats”: Strategists call high yie holding stocks to weather a bear market Citi calls its “highest conviction ideas” for the second half of 2022 – giving upside potential of 85% Wall Street believes these While battered global stocks are poised for a rebound from a US recession, Ablin acknowledged that risks are rising but said he doesn’t expect a downturn on the scale of 2008. During the 2008 recession, the S&P 500 fell 56.8% from peak to trough from October 2007 to March 2009, with much of the drop (48%) occurring in the brief period around the peak of the crisis in the fall of 2008 for a while to stay with us,” Ablin said.