According to the Zhitong Finance APP, BMO Capital Markets expects turbulence in the U.S. stock market in 2025 and has released a list of dividend growth stocks, stating that these stocks can help investors withstand volatility.
The company stated on Wednesday that such stocks help mitigate losses while allowing investors to participate in market gains.
Although BMO is optimistic about the U.S. stock market this year, it believes that investors are shifting towards traditional investment strategies after a heightened focus on AI-centered developments. BMO Chief Investment Strategist Brian Belski noted in a report that this shift may bring challenges compared to the &#34;easy&#34; market gains of the past two years.
Meanwhile, U.S. Treasury yields have surged as stronger-than-expected economic data has weakened expectations for the Federal Reserve to continue significant rate cuts. Belski stated, &#34;This has clearly raised the anxiety index for investors, especially considering valuation levels.&#34;
The strategist indicated that the dividend growth stocks he focuses on have historically shown stable annualized returns compared to the S&amp;P 500 index during periods of rising volatility:
<img src="https://imageproxy.pbkrs.com/https://img.zhitongcaijing.com/image/20250117/1737085337200520.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" alt="image.png" original-src="https://imageproxy.pbkrs.com/https://img.zhitongcaijing.com/image/20250117/1737085337200520.png"/>
Belski stated, &#34;Given the current market dynamics, we believe that price fluctuations will become more frequent in the coming months, requiring investors to be more disciplined and forward-looking.&#34; Currently, BMO's target price for the S&amp;P 500 index is 6,700 points.
BMO's screening criteria include stocks that have not cut dividends in the past five years and have shown year-over-year per-share dividend growth above that of the S&amp;P 500 index in the most recent year.
Here are the individual stocks and ratings covered by BMO:
AFLAC (AFL.US) - Not Rated
CF Industries Holdings (CF.US) - Outperform
CSX Transportation (CSX.US) - Outperform
Caterpillar (CAT.US) - Not Rated
Cincinnati Financial (CINF.US) - Outperform
Comcast (CMCSA.US) - Not Rated
Deere &amp; Company (DE.US) - Market Perform
Dell (DELL.US) - Not Rated
Domino's Pizza (DPZ.US) - Outperform
eBay (EBAY.US) - Market Perform
FedEx (FDX.US) - Market Perform
Hartford Financial Services (HIG.US) - Market Perform
Hess (HES.US) - Outperform
Hewlett Packard Enterprise (HPE.US) - Not Rated
Kroger (KR.US) - Market Perform
Marathon Oil (MPC.US) - Outperform
Nordson (NDSN.US) - Not Rated
A.O. Smith (AOS.US) - Not Rated
Steel Dynamics (STLD.US) - In line with the market
Tractor Supply (TSCO.US) - Not rated
Allegion (ALLE.US) - Not rated
Everest Group (EG.US) - Outperform the market
TE Connectivity (TEL.US) - Not rated

BMO Capital Markets expects turbulence in the U.S. stock market in 2025 and recommends dividend growth sectors to help investors withstand market fluctuations. Despite an optimistic outlook for U.S. stocks this year, BMO believes investors are shifting towards traditional investment strategies. BMO's Chief Investment Strategist Brian Belski pointed out that dividend growth stocks demonstrate stable annualized returns during periods of increased volatility and anticipates that price fluctuations will increase in the coming months. BMO's target price for the S&P 500 index is 6,700 points

- BMO Capital Markets anticipates turbulence in the U.S. stock market in 2025 and has released a list of dividend growth stocks to help investors mitigate volatility.  
- The firm remains optimistic about the U.S. market this year but notes a shift towards traditional investment strategies amid heightened focus on AI developments.  
- BMO's target for the S&P 500 index is 6,700 points, with selected stocks meeting criteria such as no dividend cuts in the past five years and recent dividend growth exceeding that of the S&P 500.

Zhitong

Bank of Montreal

A.O Smith

Caterpillar

Dell Tech

PING AN

SPDR S&P 500

Domino's

Cincinnati Financial

FedEx

Tractor Supply

CHINA LIFE

TE Connectivity

S&P 500

Comcast

CPIC

Kroger

How to select stocks in a volatile U.S. stock market? Investment bank BMO recommends the dividend growth sector