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For years, analysts and portfolio managers have anticipated the return of value stocks as the market rises. And for years, value stocks have continued to underperform growth stocks. However, that appears to be changing in 2022 as nearly every metric from valuations to earnings for the growth space has begun to reverse.
Value stocks are generally defined as stocks of a company with strong fundamentals that are priced below those of its peers, based on an analysis of price-to-earnings ratio, yield and other factors. The BofA Securities Value 10 Portfolio is quantitatively generated and is based on BofA Securities’ proprietary model versus consensus earnings surprise model, plus three additional selection criteria. The universe used by analysts is the S&P 500.
We selected the Value 10 portfolio for the five stocks with the highest dividends. These top picks could be the big winners in the second half of 2022. While all are rated Buy at BofA Securities, it’s important to remember that no single analyst report should be used as the sole basis for any investment decision. buying or selling.
Exelon
This top utility stock also makes sense for conservative investors. Exelon Corp. (NYSE: EXC) is engaged in the generation, delivery and marketing of energy in the United States and Canada. It has nuclear, fossil, wind, hydroelectric, biomass and solar power plants.
The company also sells electricity to wholesale and retail customers, and it sells natural gas, renewable energy and other energy-related products and services. In addition, it is involved in the regulated retail purchase and sale of electricity and natural gas, as well as the transmission and distribution of electricity and the distribution of natural gas to retail customers.
The company also offers support services, including legal, human resources, information technology, finance, supply management, accounting, engineering, customer operations, distribution and transmission planning, asset management, system operations and power supply services. It serves distribution utilities, municipalities, cooperatives and financial institutions, as well as commercial, industrial, government and residential customers.
Investors in Exelon shares receive a dividend of 3.12%. BofA Securities has a target price of $54 on the stock, and the consensus target is $49.29. The stock ended Monday’s trading at $43.89 apiece.
Hartford Financial Services
This insurance giant is a dependable idea for conservative investors, and it offers incredible value at current trading levels. Hartford Financial Services Group Inc. (NYSE: HIG) provides insurance and financial services to individuals and businesses in the United States, United Kingdom and elsewhere.
Its Commercial Lines segment offers workers’ compensation, property, auto, liability, umbrella, bond, marine, livestock and reinsurance insurance, as well as customized insurance products and risk management services, including professional liability coverages , bonding, bonding and specialized accidents through regional offices. , branches, policyholder sales and service centers, independent retail agents and brokers, wholesale agents and reinsurance brokers.
