At Extreme Investor Network, we understand the importance of finding the right dividend plays for investors. That’s why we’re excited to share insights from Bank of America’s equity and quantitative strategist, Savita Subramanian, who recently released a screen for the second quintile of the Russell 1000 by trailing dividend yield.
Subramanian’s screen focuses on companies with attractive dividend yields that are not distressed and are also attractively valued. In today’s total return world, dividends play a crucial role in overall market returns, and Subramanian advises investors to seek out companies with above-market and secure dividend yields.
After running Bank of America’s screen, more than 100 companies emerged in the second quintile, with some standout names in terms of dividend yield. For example, Zions had the highest dividend yield at 3.47%, while AES followed closely behind at 3.41%. Despite different performance trends this year, both Zions and AES are poised for potential growth ahead, according to Wall Street analysts.
Zions, which has climbed around 15% this year, is expected to rebound further with an average analyst price target suggesting a 29% increase over the next year. Similarly, AES, which has struggled this year, is seen as a play on renewable energy with a quality improvement twist at a discounted price, according to Jefferies analyst Julien Dumoulin-Smith.
Further down the list, Citigroup also offers a solid dividend yield of 3.39% and potential upside, despite a recent dip in share price after earnings report. With a buy rating and a price target indicating 11.5% growth ahead, Citigroup presents an intriguing opportunity for dividend-seeking investors.
At Extreme Investor Network, we believe that thorough research and strategic analysis are key to successful investing. Stay tuned for more insights and tips on navigating the world of investing with confidence and expertise. Subscribe to our newsletter for exclusive updates and recommendations tailored to your investment goals.