Wells Fargo’s ‘Core’ stocks: GOOGL, HD, KO, and more

Wells Fargo analysts presented their “Core” list of stocks.

These are high-quality, “blue chip, industry-leading companies” that can be long-term investment ideas.

The characteristics considered for the list include long-term revenue; earnings, dividend growth rates, and projected growth rates; a company’s management team; return on invested capital; the stability of their revenues and earnings; stock price volatility; various valuation metrics; and balance-sheet strength, among others, Analyst John Sheehan said.

He also said that the list has generated in average about 7.7% in dividend increases over the dividend paid during the previous 12 months ending June 30.

Here is the “Core” list, organized by sectors:

Communication services

• Alphabet Inc. (GOOGL) – Dividend yield: 0.5%; Consensus next-12-months EPS: $8.01
• Comcast Corp. (CMCSA) – Dividend yield: 3.0%; Consensus next-12-months EPS: $4.30
• The Walt Disney Co. (DIS) – Dividend yield: 0.8%; Consensus next-12-months EPS: $5.11
• Omnicom Group Inc. (OMC) – Dividend yield: 2.7%; Consensus next-12-months EPS: $8.18

Consumer discretionary

• The Home Depot Inc. (HD) – Dividend yield: 2.2%; Consensus next-12-months EPS: $15.20
• Lowe’s Companies Inc. (LOW) – Dividend yield: 1.7%; Consensus next-12-months EPS: $12.01
• NIKE Inc. (NKE) – Dividend yield: 1.7%; Consensus next-12-months EPS: $2.95
• Starbucks Corp. (SBUX) – Dividend yield: 2.3%; Consensus next-12-months EPS: $3.80
• The TJX Companies Inc. (TJX) – Dividend yield: 1.3%; Consensus next-12-months EPS: $4.32

Consumer staples

• The Coca-Cola Co. (KO) – Dividend yield: 2.7%; Consensus next-12-months EPS: $2.93
• Colgate-Palmolive Co. (CL) – Dividend yield: 2.0%; Consensus next-12-months EPS: $3.71
• PepsiCo Inc. (PEP) – Dividend yield: 3.2%; Consensus next-12-months EPS: $8.39
• Procter & Gamble Co. (PG) – Dividend yield: 2.3%; Consensus next-12-months EPS: $6.97
• Sysco Corp. (SYY) – Dividend yield: 2.6%; Consensus next-12-months EPS: $4.60
• Walmart Inc. (WMT) – Dividend yield: 1.0%; Consensus next-12-months EPS: $2.56

Energy

• Chevron Corp. (CVX) – Dividend yield: 4.4%; Consensus next-12-months EPS: $11.28
• Kinder Morgan Inc. (KMI) – Dividend yield: 5.1%; Consensus next-12-months EPS: $1.21

Financials

• Aflac Inc. (AFL) – Dividend yield: 1.8%; Consensus next-12-months EPS: $6.84
• BlackRock Inc. (BLK) – Dividend yield: 2.2%; Consensus next-12-months EPS: $43.45
• Chubb Ltd. (CB) – Dividend yield: 1.2%; Consensus next-12-months EPS: $22.37
• JPMorgan Chase & Co. (JPM) – Dividend yield: 2.4%; Consensus next-12-months EPS: $16.24
• Mastercard Inc. (MA) – Dividend yield: 0.5%; Consensus next-12-months EPS: $15.31

Health care

• Abbott Laboratories (ABT) – Dividend yield: 1.9%; Consensus next-12-months EPS: $4.92
• Decton, Dickinson & Co. (BDX) – Dividend yield: 1.6%; Consensus next-12-months EPS: $13.99
• Danaher Corp. (DHR) – Dividend yield: 0.4%; Consensus next-12-months EPS: $8.03
• Johnson & Johnson (JNJ) – Dividend yield: 3.1%; Consensus next-12-months EPS: $9.90
• Medtronic Plc (MDT) – Dividend yield: 3.1%; Consensus next-12-months EPS: $5.55
• Merck & Co. Inc. (MRK) – Dividend yield: 2.7%; Consensus next-12-months EPS: $8.48
• Novartis AG (NVS) – Dividend yield: 2.8%; Consensus next-12-months EPS: $7.80
• Stryker Corp. (SYK) – Dividend yield: 0.9%; Consensus next-12-months EPS: $12.75
• UnitedHealth Group Inc. (UNH) – Dividend yield: 1.4%; Consensus next-12-months EPS: $29.23

Industrials

• Automatic Data Processing Inc. (ADP) – Dividend yield: 2.0%; Consensus next-12-months EPS: $10.03
• Emerson Electric Co. (EMR) – Dividend yield: 1.9%; Consensus next-12-months EPS: $5.78
• Illinois Tool Works Inc. (ITW) – Dividend yield: 2.3%; Consensus next-12-months EPS: $10.27
• Landstar System Inc. (LSTR) – Dividend yield: 0.8%; Consensus next-12-months EPS: $6.51
• Paychex Inc. (PAYX) – Dividend yield: 2.8%; Consensus next-12-months EPS: $5.03
• Parker-Hannifin Corp. (PH) – Dividend yield: 1.0%; Consensus next-12-months EPS: $26.78
• RTX Corp. (RTX) – Dividend yield: 2.0%; Consensus next-12-months EPS: $5.66

Information technology

• Accenture Plc (ACN) – Dividend yield: 1.7%; Consensus next-12-months EPS: $12.82
• Apple Inc. (AAPL) – Dividend yield: 0.4%; Consensus next-12-months EPS: $7.22
• Broadcom Inc. (AVGO) – Dividend yield: 1.3%; Consensus next-12-months EPS: $5.92
• Salesforce Inc. (CRM) – Dividend yield: 0.6%; Consensus next-12-months EPS: $10.46
• Cisco Systems Inc. (CSCO) – Dividend yield: 3.0%; Consensus next-12-months EPS: $3.57
• Microsoft Corp. (MSFT) – Dividend yield: 0.8%; Consensus next-12-months EPS: $13.05
• Oracle Corp. (ORCL) – Dividend yield: 1.0%; Consensus next-12-months EPS: $6.44
• Texas Instruments Inc. (TXN) – Dividend yield: 2.7%; Consensus next-12-months EPS: $5.65

Materials

• Linde Plc (LIN) – Dividend yield: 1.2%; Consensus next-12-months EPS: $16.27

REITs

• Public Storage (PSA) – Dividend yield: 3.3%; Consensus next-12-months EPS: $16.97

Utilities

• CMS Energy Corp. (CMS) – Dividend yield: 2.9%; Consensus next-12-months EPS: $3.53
• NextEra Energy Inc. (NEE) – Dividend yield: 2.4%; Consensus next-12-months EPS: $3.44