Many investors seek reliable passive income from top-quality dividend stocks. Passive income is a steady flow of unearned earnings that do not require active work. Options for generating passive income include investments like dividend stocks, bonds, mutual funds, real estate, and other income-generating side activities. Particularly for those approaching retirement, passive income serves as a supplement to Social Security, pensions, or retirement account withdrawals.
Key Points:
– Quality dividend stocks remain popular.
– The Federal Reserve may have halted interest rate cuts.
– BofA Securities’ top stock picks have a strong buy rating and a history of outperformance.
– Utilizing a cash back credit card can yield significant returns.
We have closely followed BofA Securities’ US 1 List of top stock picks, which have consistently delivered strong results. As investors navigate the current market landscape, we have identified five US 1 stocks with significant growth potential and reliable dividend payouts.
What makes the BofA Securities US 1 picks noteworthy?
The BofA Securities US 1 List comprises top investment choices curated by BofA Global Research analysts. These selections are sourced from Buy-rated U.S.-listed stocks, including American depository receipts (ADRs), and are designed to offer superior long-term investment performance.
**AllianceBernstein**
As a global asset management firm, AllianceBernstein provides investment management and research services worldwide. Known for its rich 9.05% dividend yield, AllianceBernstein Holding L.P. (NYSE: AB) manages separate client portfolios, investing in various asset classes. The firm employs quantitative analysis and employs a range of investment strategies to maximize returns. BofA Securities has set a target price of $42 for AllianceBernstein shares.
**American Healthcare REIT**
This self-managed real estate investment trust is a standout US 1 pick. With a focus on healthcare real estate, American Healthcare REIT Inc. (NYSE: AHR) offers a 3.41% dividend to shareholders. Operating in the U.S., the U.K., and the Isle of Man, the company owns a diverse portfolio of healthcare properties, including senior housing and medical facilities.
For more information on these top stock selections and other investment opportunities, feel free to explore further.
The various properties within the LTH campuses offer a range of living options including independent living, assisted living, memory care, skilled nursing services, and ancillary businesses. The triple-net leased properties segment comprises senior housing, skilled nursing facilities, and hospital investments. In contrast, the SHOP segment includes senior housing that may provide assisted living care, independent living, memory care, and skilled nursing services. BofA Securities has set a target price of $36 for the shares.
Blue Owl Capital, an American alternative investment asset management company, is highly regarded by the BofA Securities team. Operating across Credit, GP Strategic Capital, and Real Estate platforms for institutional and private wealth clients, Blue Owl Capital offers various product platforms, including Credit, GP Strategic Capital, and Real Estate. The company specializes in providing private financing solutions to middle-market businesses and acquiring equity stakes in private capital firms. Its Real Estate products focus on acquiring triple-net lease properties occupied by creditworthy tenants. The BofA Securities target price for Blue Owl Capital is $32.
Chevron, a leading American multinational energy corporation, is a safe choice for investors interested in the energy sector. Paying a generous dividend of 4.48%, Chevron engages in integrated energy and chemicals operations globally. The company operates in two main segments: Upstream and Downstream. The Upstream segment involves activities such as exploration, development, and transportation of crude oil and natural gas, while the Downstream segment includes refining crude oil, marketing petroleum products, manufacturing renewable fuels, and more. In late 2023, Chevron announced a definitive agreement to acquire all outstanding shares of Hess Corp. in an all-stock transaction valued at $53 billion.
BofA Securities has established a price target goal of $180 for Sempra. Sempra, headquartered in San Diego, California, is a publicly traded North American utility holding company. Despite the robust performance of the sector as a whole, Sempra continues to offer a reliable 3.03% dividend yield. Trading on the New York Stock Exchange under the ticker symbol SRE, Sempra functions as an energy infrastructure firm operating in both domestic and international markets. The company is organized into three key segments: Sempra California, Sempra Texas Utilities, and Sempra Infrastructure.
The Sempra California segment delivers electric and natural gas services to San Diego County. By the end of 2024, the segment supplied electricity to approximately 3.6 million individuals and natural gas to around 3.3 million residents, covering an expansive 4,100 square miles. This segment owns and manages a comprehensive natural gas distribution, transmission, and storage system, serving a population of 21 million across 24,000 square miles as of December 31, 2023.
Sempra Texas Utilities, another segment of the company, focuses on regulated electricity transmission and distribution. By the end of 2023, its transmission network comprised 18,298 circuit miles of transmission lines, 1,257 transmission and distribution substations, and interconnection with 173 third-party generation facilities, totaling 54,277 megawatts. The distribution system included approximately 4.0 million points of delivery and featured 125,116 miles of overhead and underground lines.
The Sempra Infrastructure segment is responsible for the development, construction, operation, and investment in energy infrastructure to facilitate the global energy transition, particularly in North American markets. BofA Securities has assigned a price target of $94 for this segment.
Notably, two blue-chip dividend giants constitute nearly 40% of Warren Buffett’s investment portfolio.
