The U.S. economy is flashing a sign that's favorable for dividend stocks, according to Bank of America.
In this environment, investors want to own dividend stocks with above-market yields, she said.
For those characteristics, she looks to quintile two of the Russell 1000 by trailing dividend yield.
Her screen guards against owning distressed companies that might move into the first quintile, the highest dividend yield group, if prices fall ahead of potential dividend cuts.
APA has a 3.1% dividend yield, while HF Sinclair yields 3.5%.
Persons:
Savita Subramanian, Subramanian, Russell, Jeffrey Martin, CNBC's Jim Cramer, John Christmann
Organizations:
Bank of America, Bank of, AES, APA, Sinclair, Callon Petroleum, CNBC, Citigroup, Citi
Locations:
U.S