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