At least that’s Merrill Lynch’s recently published outlook.  I happen to agree with it.  There are a few names here we own, our largest positions, and some insider buying as well.  Merrill Lynch writes

  • Combines growth, yield and quality, three of our key theme-dividend growth potential in addition to high dividend yield.
  • Under-owned by fund mangers Health Care is the preferred defensive sector (We have a full weighting nearly 8% in MRK but have sold some call per our tweet)
  • Only sector with no expected deceleration in earning growth in 2012
  • Risks: commodity inflation, strong profits recovery.

 

Our favorite names here are Procter Gamble, Kraft, Kellogg, Snyders-Lance