UBS Makes a Huge Addition to Quality Growth at a Reasonable Price Portfolio

While it seems almost impossible, the first quarter of 2017 is about ready to be put in the books, and what a quarter it’s been. Stocks have continued the Trump rally almost unabated as investor risk appetite has been buoyed by hopes for significant improvement in the economy, plentiful jobs and most importantly, increases in income. The top firms we cover here at 24/7 Wall Street are fine-tuning their portfolios, and making some final end of quarter changes.

In a new report, UBS makes a big change to the firm’s Quality Growth at a Reasonable Price (Q-GARP) portfolio. This portfolio has consistently outperformed the S&P 500 since inception in 2007, and it offers investors an outstanding portfolio using an initial quantitative screen of stocks based on:

  1. Quality metrics: high and stable profitability
  2. Growth: high expected earnings growth
  3. Valuation: low valuation relative to peers

The final list is a compilation of quality growth stocks that it believes are trading at attractive valuations.

A top wireless tower company that is well-liked Wall Street is the newest addition to the Q-GARP portfolio. American Tower Corp. (NYSE: AMT) is the largest global owner and operator of wireless and broadcast communications towers. Its portfolio includes approximately 100,000 sites in the United States, Latin America, India, Europe and Africa. The core business for the company is leasing space on its wireless towers, primarily to wireless carriers, government agencies and broadband data providers.

On a multiple basis the stock trades cheaper than the competition, and many top analysts around Wall Street feel the growth potential for the company remains among the best in the industry.

American Tower investors are paid a 2.15% distribution. The UBS price target for the stock is $130. The Wall Street consensus is $131. The stock closed Thursday at $115.09 a share.

In addition, here are the top four dividend stocks in the Q-GARP portfolio.

Ameriprise Financial

This top company offers investors solid upside potential and a very nice dividend. Ameriprise Financial Inc. (NYSE: AMP) provides a range of financial products and services in the United States and internationally. The Advice & Wealth Management segment offers financial planning and advice, as well as brokerage services primarily to retail clients through its advisors.

Its Asset Management segment provides investment advice and investment products to retail, high net worth, and institutional clients through unaffiliated third-party financial institutions and institutional sales force. In recent years Ameriprise has recruited heavily from the top Wall Street firms’ ranks.

Ameriprise investors are paid a 2.23% dividend. While the company is also on the UBS Most Preferred List, no price target was available. The consensus price objective is $140.60, and the shares ended trading on Thursday at $134.60.