NEW YORK (TheStreet) -- It's anyone's guess which direction the market will take in the second half of 2015. Between the uncertainty surrounding interest rate hikes and the economic concerns in Europe, it would seem the best place to store your money for peace of mind would be under your mattress. But good luck generating any meaningful returns there.
Instead, here are three companies to consider. In Kinder Morgan (KMI), PG&E Corp (PCG) and Procter & Gamble (PG), investors can own solid dividend payers that trade at cheap valuations, while diversifying their portfolios to withstand any volatility the market may bring.
Let's start with Kinder Morgan.
With a 48-cent per share quarterly dividend that yields 4.90% annually, energy giant Kinder Morgan is the most generous payer among the three companies. Not to mention, it's yield is almost three percentage points higher the average of 2.00% paid out by dividend payers in the S&P 500 (SPX) index. And evidence suggests the Houston-based company plans to become even more generous in the years ahead.
Kinder Morgan has been on an acquisition spree, picking off MLP's (master limited partnerships) that will allow it to lower its cost of capital. These deals will give the company the ability to grow its dividend by about 10% each year for the next five years, during which it should pay out some $2 billion. Not to mention, the MLPs acquired by Kinder Morgan already paid attractive dividend yields, making it possible for it to raise its dividend by double digits, while at the same time having excess cash to do more deals.