The narrow stock market rally could extend beyond mega-cap tech, and investors should target the Magnificent 80 stocks, according to Bank of America's Savita Subramanian. The company's head of U.S. equities and quantitative strategy said in a note Friday that the Magnificent Seven – Amazon, Apple, Alphabet, Metaplatform, Microsoft, Nvidia and Tesla – are likely not to experience a significant slowdown this year. Ta. He expects the rest of the S&P 493 to catch up in June or earlier, and said a broader range of stocks could outperform the Magnificent Seven's gains in the fourth quarter. Both of these, along with the expected spike in volatility related to the US election and Federal Reserve rate cuts, are the main reasons why Subramanian sees the market rallying wider. Subramanian points to the so-called “Magnificent 80” stocks, which are primarily comprised of companies with strong fundamentals, to accommodate the expected expansionary market rally. These stocks reviewed by Bank of America tout competitive dividend yields with greater potential for stock income than cash. The dividend is also expected to grow by at least 5% over the next three years. Here are some of the Magnificent 80 companies that are rated Buys by Bank of America. Ford acquired Bank of America's share. The company's stock price rose more than 6% in 2024. The company expects Ford's dividend to increase by 5% over the next three years, resulting in a three-year annualized dividend yield of 5.1%. F YTD Mountain Ford Stock. Ford last week beat Wall Street expectations for fourth-quarter sales and bottom line earnings and announced plans for a special dividend of 18 cents per share on top of the regular dividend of 15 cents. Oil giant Chevron also made the list. The stock price has increased about 2% since the beginning of the year. Bank of America also expects Chevron's dividend to increase by 5% over the next three years, giving it a three-year annualized dividend yield of 4.1%. CVX YTD Mountain Chevron In Stock. In Chevron's latest quarterly results, the company approved an 8% dividend increase starting in March. Last year, Chevron returned a total of $11.3 billion to shareholders through dividends and repurchased $14.9 billion in stock. Other stocks on the list include Trust Financial and Philip Morris.
