Bank of America’s stock picks for 2021 are based on selecting the best stock in the 11 S&P 500 sectors that will outperform the sector. The investment firm experts unveiled their top picks for each sector in 2021 in a client note on Thursday, and include 3 dividend aristocrats.
Bank of America expects the S&P 500 could climb 6% by the end of 2021, saying that the “recovery is intact and the world will likely reopen in the second half of the year, but a lot of optimism is priced in already on [expectations for] the vaccine and recovery.”
The experts list some beaten-down stocks and hard-hit sector stocks that will benefit from the reopening such as Disney (DIS) and Hilton Worldwide (HLT).
The three dividend aristocrats selected for 2021 are:
BofA’s Top Stock Picks For 2021:
The greatest risks to the bank’s market outlook for next year could be the vaccine execution itself, delayed fiscal stimulus, and additional government-imposed lockdowns. Furthermore, BofA is not that good in stock picking. The only BofA stock pick for 2020 to beat the S&P 500 is Disney (DIS), all other 10 stocks selected for 2020 did not outperform the S&P 500 nor the related sector.
Other Sources of Dividend Investment Ideas
There are several lists to quickly screen for businesses that regularly pay rising dividends.
- The Dividend Aristocrats Index is based on 64 companies part of the S&P 500 and with 25+ years of consecutive dividend increases.
- The Dividend Kings List is even more exclusive than the Dividend Aristocrats. It is comprised of less than 20 businesses with 50+ years of consecutive dividend increases.
- The MoneyInvestExpert Defensive Aristocrats is a performance-based top-10 selection of the Dividend Aristocrats to outperform the market in the long-term.
- Portfolio lists like the Berkshire Hathaway Portfolio or Bill Gates’stock portfolio can be a source.
- For the European focused investors, there is also the list of European Dividend Aristocrats.
- Dividend Champions are not necessarily members of the S&P 500 index, have increased their dividend for 25 or more consecutive years.
- 100+ years of dividend, the list of stocks that pay over 100 years of dividend can be a list of inspiration.
- Blue Chips stocks from the US or the European ones.
Next to selecting the right dividend stocks, important principles for successful long-term investing are Disciple, Diversification, Defensive & indeed Dividend. Read more about this in our free e-book.
You can also join our newsletter for free.
Thanks for reading this article.
Please send any feedback, corrections, or questions to service[@]moneyinvestexpert.com.
