5 BofA Securities Top Stock Picks for 2021 Also Pay Solid Dividends

Investing

Published: December 31, 2020 8:31 am

With 2020 mercifully ending today, many investors are evaluating portfolios for 2021. After what was an incredible run off the March and then September lows, many on Wall Street feel that the stock markets are fully valued, many trades are very crowded and small investor bullish sentiment as reflected by small lot call option trading is flashing a huge warning sign.

What many feel makes sense for 2021 are dividend-paying stocks with solid growth potential that can deliver solid total return. Total return is the amount of value an investor earns from a security over a specific period, typically one year, when all distributions are reinvested. Total return is expressed as a percentage of the amount invested.

We screened the BofA Securities US 1 list, which contains the firm’s top 37 stocks picks, looking for companies that pay among the highest dividends in the group. We found five top picks that make sense for investors looking for great stock ideas and income. It is important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.

Bristol-Myers Squibb

This remains a solid pharmaceutical stock to own long term and offers among the best values now for investors. Bristol-Myers Squibb Co. (NYSE: BMY) is a global pharmaceutical company focused on discovering, developing, licensing and marketing chemically synthesized drugs or small molecules and biologics in various therapeutic areas, including virology comprising human immunodeficiency virus infection (HIV), oncology, neuroscience, immunoscience and cardiovascular.

The company’s products include the following:

Opdivo for anti-cancer indications
Eliquis, an oral inhibitor targeted at stroke prevention in adult patients with non-valvular atrial fibrillation, and the prevention and treatment of venous thromboembolic disorders
Orencia for adult patients with active RA and prostate-specific antigen, as well as reducing signs and symptoms in pediatric patients with active polyarticular juvenile idiopathic arthritis.

Shareholders receive a very reliable 3.17% dividend. The BofA Securities team has its price target set at $80, while the Wall Street consensus target was last seen at $74.76. Bristol-Myers Squibb stock closed trading on Wednesday at $61.92 per share.