With Kevin Warsh signaling that interest rates could still rise while inflation sits above 4% and rate cuts stay on hold, many investors are rethinking how they get paid to wait in the stock market. High valuations in the S&P 500 and heavy reliance on tech stocks can make reliable cash flows and dividends look more attractive as a stabilizer. This article looks at three dividend stocks that appear well positioned within our screener’s criteria in light of these macro signals. It also explains why the current backdrop could matter for their income potential and risk profile.

Willis Towers Watson (WTW)

Overview: Willis Towers Watson is a global advisory, insurance broking, and solutions company that helps corporate and institutional clients manage employee benefits, pensions, and complex risks ranging from property and casualty to cyber and financial exposures.

Operations: Willis Towers Watson generates about US$4.4b from Risk & Broking and US$5.4b from Health, Wealth & Career, with additional smaller reimbursable and other revenue streams, serving clients across the United States, United Kingdom, Ireland, and the rest of the world.

Market Cap: US$23.9b

Investors looking for dividends in a higher rate world may find Willis Towers Watson interesting because its core business is advising on risk and benefits at a time when inflation, climate events, and digital threats keep corporate risk in focus. The company combines sizeable, recurring advisory revenues with a current Return on Equity of 20.8%. Analysts see its future cash flow value as higher than today’s share price and expect earnings growth, albeit at a moderate pace. At the same time, a high debt load, recent earnings declines of 13.3% per year over 5 years, and an uneven dividend record mean the income story is not straightforward. That mix of strengths and pressure points is where the real opportunity, or downside, may sit for Willis Towers Watson investors.

Willis Towers Watson’s 20.8% Return on Equity and recurring advisory revenues may reflect a more nuanced income story than the headline dividend suggests, so review the 4 key rewards and 2 important warning signs

AUB Group (ASX:AUB)

Overview: AUB Group is an insurance broker and underwriting agency group that helps mostly small and medium sized businesses arrange cover, manage claims, and access tailored insurance products across Australia, New Zealand, the UK, the US, Europe, and other markets.

Operations: AUB Group generates revenue primarily from Australian Broking (A$420m), International (A$459m), Agencies (A$233m), and New Zealand Broking (A$94m), with smaller contributions from Support Services and segment adjustments.

Market Cap: A$3.7b

AUB Group sits in a part of the market that many income investors look for when rates stay higher for longer: a relatively steady insurance broking and agency business with a 3.03% dividend yield, double digit revenue growth forecasts, and a P/E that is below peer averages while still implying analyst upside. At the same time, recent earnings are flattered by a large A$56.2m one off gain, and the group leans heavily on debt funded acquisitions and overseas expansion, which brings integration and FX risks. For investors who want to understand whether AUB’s digital platforms, fee power, and premium rate trends can offset those pressures, the full story gets much more interesting.

AUB Group’s accelerating earnings profile and 3.03% yield might look straightforward, but the real story sits in how its broker network, acquisitions, and offshore push fit together in the analyst forecasts for AUB Group that could be masking one crucial swing factor

Waterdrop (WDH)

Overview: Waterdrop is a Beijing based company that runs an online platform connecting users in China with health and life insurance products, alongside a medical crowdfunding service and a clinical trial matching service for pharmaceutical companies.

Operations: Waterdrop generates most of its CN¥4.47b revenue from insurance services at about CN¥4.06b, with smaller contributions from crowdfunding at roughly CN¥255m and other services at around CN¥147m, all in the People’s Republic of China.

Market Cap: US$0.43b

Waterdrop may interest dividend focused investors because it combines an online insurance brokerage model, semiannual dividends, and ongoing share buybacks, backed by earnings that analysts describe as high quality. The company is leaning into AI tools to improve sales efficiency and lower costs, and it is also growing revenue faster than the broader US market. At the same time, margin pressure, intense competition, and a funding structure reliant on external borrowing mean that returns are closely tied to execution and regulation in China. Recent board changes that strengthen audit oversight add another layer to the story, but they do not remove the need to weigh the low P/E and income profile against these structural risks.

Waterdrop’s mix of online insurance reach, buybacks, and cash returns is getting more attention, but the real tension is what current earnings quality might be hiding in the analysis report for Waterdrop

The three dividend stocks covered here are just a starting point, as the full Dividend Stocks screener surfaces 26 more companies with similarly detailed income stories and risk factors to weigh. Use Simply Wall St to identify, filter, and analyze the exact catalysts, payout profiles, and balance sheet narratives that matter most so you can focus on the income ideas that best match your convictions.

Take Control of Your Investment Journey

If Willis Towers Watson or any of these companies sound like a great opportunity, register for FREE with Simply Wall St and add your companies to a Watchlist to monitor the share price against the fair value the ideal entry point. Once you've made your move, manage your holdings with our Portfolio Command Center that filters out the noise to deliver only the most critical, actionable updates. Throughout your journey, our Community allows you to filter the best ideas from thousands of investor perspectives. By uncovering hidden catalysts and risks early, you'll accelerate your decision-making and stay one step ahead of the market.

Seeking Alternatives Beyond Dividend Stocks?

Fresh ideas move fast, and the next breakout list will not sit quietly while momentum builds and prices start flying. Scan these under the radar picks before the crowd and consider acting while interest is still developing.

• Target sturdier portfolios by reviewing a curated list of solid balance sheet and fundamentals (48 results) that spotlights companies with financial cushioning when conditions change and funding suddenly gets more expensive.
• Explore structural shifts in energy by checking 89 nuclear energy infrastructure stocks packed with infrastructure stocks positioned around long term power demand and potential grid upgrades.
• Follow the next wave of enterprise technology spending through 49 AI infrastructure stocks featuring companies supplying the backbone for data centers, chips, and AI workloads while they are still under the radar.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.