With the year and the decade coming to a close, many of the top companies we follow on Wall Street are making some changes to the lists of their high-conviction stock picks for clients. With the market showing strength not seen in years, it makes sense to examine the lists and consider some changes, as 2020 could have increased volatility as the political and geopolitical cycles could once again prove to be very explosive components.

In a recent research note, the analysts at Merrill Lynch make a big move by adding Baker Hughes Co. (NYSE: BKR) to the firm’s well-respected US 1 list of stocks to Buy. This is big as energy and oilfield services stocks have suffered this year, while all the major indexes have delivered 20% returns.

Baker Hughes is an international industrial service company and one of the world’s largest oil field services companies. It provides the oil and gas industry with products and services for oil drilling, formation evaluation, completion, production and reservoir consulting.

General Electric recently gave up majority control of the company. While selling shares in the oil-field services firm raised about $3 billion cash, it also triggered a more than $7 billion accounting charge.

Shareholders in Baker Hughes receive a very solid 3.17% dividend. The Merrill Lynch price target for the shares is $29, and the Wall Street consensus target was last seen at $28.62. Shares closed Wednesday’s trading at $22.68 apiece.

We screened the rest of the Merrill Lynch US 1 list looking for top picks that pay solid and dependable dividends and found four good growth and income ideas. With another year of low interest rates in the outlook for 2020, total return stocks may be the best bet for investors.

BlackRock

Many on Wall Street love this firm’s growth potential near term and especially long term. BlackRock Inc. (NYSE: BLK) is the largest asset manager in the world, with more than $5 trillion in assets under management. Its acquisitions of Merrill Lynch Investment Management and iShares transformed it from a fixed income manager into a multiproduct and multichannel giant, with roughly 40% of its assets under management overseas. It has leading franchises in exchange-traded funds (ETFs), institutional fixed income, alternatives and cash. It also operates Solutions, a leader in risk analytics.

The company’s strong historical and prospective dividend growth is underpinned by the high-quality and diversified business model. Dividends have increased 18% annually over the past 10 years. Dividend growth likely will moderate but remains solid in the low teens, consistent with expectations for earnings growth in the years ahead.

Shareholders receive a 2.67% dividend. Merrill Lynch has a $520 price objective, and the consensus target is right in line at $519.80. Shares closed at $493.91 on Wednesday.

Corning

This company continues to be a huge player in the fiber optic world. Corning Inc. (NYSE: GLW) is a technology pioneer that manufactures LCD glass for flat-panel displays. Telecommunications (30% of sales) produces optical fiber and cable, component hardware and equipment, and photonic components for the telecommunications, CATV and networking industry.

In addition, the company’s Environmental Technologies division (12% of sales) produces specialized glass, glass ceramic and polymer-based products for the automotive industry.

Corning offers shareholders a 2.86% dividend. The $34 Merrill Lynch price target compares to the $31.47 consensus target and the most recent close at $28.02.

This consumer sector giant makes good sense for conservative accounts. Mondelez International Inc. (NASDAQ: MDLZ) manufactures and markets snack food and beverage products worldwide. It offers biscuits, including cookies, crackers and salted snacks; chocolates, and gums and candies; powdered beverages and coffee; and cheese and grocery products.

Its primary brand portfolio includes LU, Nabisco and Oreo biscuits; Cadbury, Cadbury Dairy Milk and Milka chocolates; Trident gum; Jacobs Kaffee; and Tang powdered beverages.

Mondelez sells its products to supermarket chains, wholesalers, supercenters, club stores, mass merchandisers, distributors, convenience stores, gasoline stations, drug stores, value stores and other retail food outlets through direct store delivery, company-owned and satellite warehouses, distribution centers and other facilities, as well as through independent sales offices and agents.

Mondelez shareholders receive a 2.11% dividend. Merrill Lynch has set its price target at $61. The posted consensus target price is $61.16, and the shares closed most recently at $53.93.

Target

This remains a solid and safe retail total return play, and the company recently posted blowout results. Target Corp. (NYSE: TGT) is one of the largest discount retailers in the United States, operating roughly 1,800 Target stores across the country. The company sells merchandise in its Signature Categories Style, Baby, Kids and Wellness, as well as other products in both physical Target stores and online at Target.com.

Over the past couple of years, Target has poured tons of money into its e-commerce offerings, overhauling its stores and refreshing its inventory to compete better against Amazon. Target has even embraced the same-day delivery concept and is expanding retail floor space for toys as it looks to scoop market share.

Solid numbers and a very positive analysts day had the Merrill analysts noting that they believe the company’s ability to moderate fulfillment costs through its “stores as hubs” model should drive margin improvement in fiscal 2020. They also feel the valuation is compelling at current levels, and it could be a big winner this holiday selling season.

Shareholders of Target receive a 2.10% dividend. Merrill Lynch’s price objective is $150. The posted consensus target is much lower at $136.21, and the stock closed Wednesday at $125.80 per share.

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One new addition to the vaunted US 1 list and four additional ideas that offer solid growth and dependable dividends. Given the big market moves this year, it may be wise to buy partial positions and see if the new year doesn’t bring a small pullback.

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