BofA Securities is the investment banking and capital markets division of Bank of America, one of the largest financial institutions in the United States. The division provides a comprehensive range of services, including equity and debt underwriting, mergers and acquisitions advisory, sales and trading, research, and capital markets solutions to corporate, institutional, and government clients worldwide. As a major player on Wall Street, BofA Securities competes with other bulge-bracket investment banks and maintains a significant market share across various financial services sectors.
For the past 15 years, we have covered BofA Securities’ rotating quarterly stock picks, which typically include nine Buy-rated long ideas and one Underperform-rated (short-sell) recommendation. We then screen the list looking for the stocks that are also solid dividend ideas. To kick off 2026, we highlight five top stocks on the list, some with old-school credentials, that are perfect for growth and income investors seeking dependable passive income from reliable companies.
Why do we cover Bank of America stock picks?
BofA Securities is one of the top firms on Wall Street, and we have covered the company’s curated stock lists and the quarterly Best Ideas list for years. These are the highest-rated companies across multiple categories, and the firm’s top equity analysts have thoroughly vetted all the stock picks.
Cigna
With healthcare in focus due to an aging population, Cigna Group (NYSE: CI) is a solid idea with a dependable 2.14% dividend. This global health company has two growth platforms:
- Evernorth Health Services
- Cigna Healthcare
Evernorth Health Services includes its Pharmacy Benefit Services and Specialty and Care Services operating segments, which provide independent and coordinated health solutions and capabilities to enable the healthcare system to work better and help people live richer, healthier lives.
Cigna Healthcare includes the U.S. Healthcare and International Health operating segments, which provide comprehensive medical plan services and coordinated solutions to clients and customers.
The company’s Other Operations include corporate-owned life insurance (COLI), the company’s run-off operations, and other non-strategic businesses.
The Specialty and Care Services segment provides specialty drugs for the treatment of complex and rare diseases, specialty distribution of pharmaceuticals and medical supplies, and clinical programs to help its clients.
Bank of America’s target price for the stock is $378.
Constellation Energy
With energy demand skyrocketing, this is a timely idea and a way to play the AI/data center trade and pick up a small 0.42% dividend. Constellation Energy Corp. (NYSE: CEG | CEG Price Prediction) is a producer of emissions-free energy and an energy supplier to businesses, homes, and public sector customers nationwide.
The company’s nuclear, hydro, wind, and solar generation facilities have a generating capacity equivalent to powering 16 million homes and provide about 10% of the nation’s clean energy.
Its segments include:
- Mid-Atlantic
- Midwest
- New York
- ERCOT
- Other Power Regions
Through its integrated business operations, it sells electricity, natural gas, and other energy-related products and sustainable solutions to various types of customers, including distribution utilities, municipalities, cooperatives, and commercial, industrial, public-sector, and residential customers across multiple geographic regions.
Its nuclear fleet has a generating capacity of approximately 22 gigawatts (GWs). It operates approximately 10 GW of natural gas, oil, hydroelectric, wind, and solar generation assets.
Bank of America has a $407 target price.
Dollar General
With affordability a hot topic recently, this could be the perfect retail idea for 2026, with 1.74% dividend. Dollar General Corp. (NYSE: DG) is a discount retailer. The company offers merchandise, including:
- Consumable items
- Seasonal items
- Home products
- Apparel
Its merchandise includes brands from manufacturers, as well as its own private brand selections, with prices discounted from the brands.
Dollar General’s consumables category includes paper and cleaning products, packaged food, perishables, snacks, health and beauty products, pet products, and tobacco products.
The seasonal products include holiday items, toys, batteries, small electronics, greeting cards, stationery, prepaid phones and accessories, gardening supplies, hardware, automotive, and home office supplies. Its home products include kitchen supplies, cookware, small appliances, light bulbs, storage containers, frames, candles, craft supplies, and kitchen, bed, and bath soft goods.
The company’s apparel products include basic items for infants, toddlers, girls, boys, women, and men, as well as socks, underwear, disposable diapers, shoes, and accessories.
Bank of America has a $160 target price.
Equinix
If you are looking for a data center trade, this is one of the biggest and best-established players, and it has a solid 2.38% dividend. Equinix Inc. (NASDAQ: EQIX) is a digital infrastructure company.
The company’s platform, Equinix, combines a global footprint of International Business Exchange (IBX) and xScale data centers in the Americas, Asia-Pacific, and Europe, the Middle East, and Africa (EMEA), interconnection solutions, digital offerings, business and digital ecosystems, and consulting and support.
It offers a variety of enabling solutions that support a customer’s need to implement, operate, and maintain its colocated deployments.
Its solutions include:
- Equinix SmartView
- Equinix SmartHands
- Equinix SmartBuild
Equinix SmartView is a fully integrated monitoring software that provides customers with visibility into the operating data relevant to their specific Equinix footprint. Its interconnection solutions connect businesses directly within and between its data centers across its global platform.
Its interconnection solutions include:
- Equinix Fabric,
- Equinix Fabric Cloud Router
- Cross Connects, and others
The price target at Bank of America is $950.
Merck
Merck & Co. Inc. (NYSE: MRK) develops and produces medicines, vaccines, biological therapies, and animal health products. It is not just a healthcare company but a global force in the industry. This healthcare giant is a no-brainer, down over 30% over the past year while paying a solid 3.02% dividend. The company operates through two segments.
The Pharmaceutical segment offers human health pharmaceutical products in:
- Oncology
- Hospital acute care
- Immunology
- Neuroscience
- Virology
- Cardiovascular
- Diabetes
- Vaccine products, such as preventive pediatric, adolescent, and adult vaccines
The Animal Health segment discovers, develops, manufactures, and markets veterinary pharmaceuticals, vaccines, health management solutions and services, as well as digitally connected identification, traceability, and monitoring products.
Merck serves:
- Drug wholesalers
- Retailers
- Hospitals
- Government agencies
- Managed healthcare providers, such as health maintenance organizations
- Pharmacy benefit managers and other institutions
- Physicians
- Physician distributors
- Veterinarians
- Animal producers
Merck’s growth is a result of its efforts and strategic collaborations. The company works with AstraZeneca, Bayer, Eisai, Ridgeback Biotherapeutics, and Gilead Sciences to jointly develop and commercialize long-acting HIV treatments, demonstrating a commitment to innovation and growth.
Bank of America has a $120 target price.
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