They never saw it coming, a Trump victory, and the Republicans holding both chambers of Congress. The good thing for investors is the Republican leaders in the House and the Senate probably will keep things from getting out of control, and the push by President-elect Trump for growth initiatives and tax cuts should help power old-school large cap growth stocks. That is a good thing for long-term investors with total return portfolios.

We screened the UBS research universe for large cap growth stocks that pay dividends and that are rated Buy. We then screened for stocks that have been hit harder than some of their peers and may have bigger upside potential for investors now.

General Electric

This iconic blue chip industrial was on a roll but has sold off 15% since July and is giving investors a nice entry point. General Electric Co. (NYSE: GE) is a highly diversified, global industrial corporation. Its businesses are organized broadly under six segments: GE Capital, Energy Infrastructure, Aviation, Healthcare, Transportation and Home & Business Solutions. Its products and services include power generation equipment, aircraft engines, locomotives, medical equipment, appliances, commercial leasing and personal finance.

The company recently announced a huge deal to combine GE’s Oil & Gas business and Baker Hughes to create a leader in oil and gas equipment, technology and services. It will have $32 billion in revenue and can leverage GE’s digital and technology expertise and Baker Hughes domain knowledge, capabilities and presence in oilfield services.

Most on Wall Street are very positive on this deal, which comes on the heels of a failed attempt by Halliburton to buy Baker Hughes. The UBS analysts note that the merger brings what they term as “pure play value, synergies, digital opportunities, perhaps most importantly, earnings accretion.” Also note that the CEO Jeff Immelt recently bought another 50,000 shares of the company’s stock.

GE investors are paid a very solid 3% dividend. The UBS price objective for the stock is $34, and the consensus price target is $32.21. Shares closed on Friday at $30.71.

Intel

This leader in semiconductors is working hard to scale away from dependence on personal computers. Intel Corp. (NASDAQ: INTC) designs, manufactures and sells integrated digital technology platforms worldwide. The company’s platforms are used in various computing applications comprising notebooks, two-in-one systems, desktops, servers, tablets, smartphones, wireless and wired connectivity products, wearables, retail devices and manufacturing devices, as well as for retail, transportation, industrial, buildings, home use and other market segments.

The company also provides communication and connectivity offerings, such as baseband processors, radio frequency transceivers and power management integrated circuits, and tablet, phone and Internet of Things solutions, which include multimode 4G LTE modems, Bluetooth technology and GPS receivers, software solutions and interoperability tests, as well as home gateway and set-top box components.

Intel reported third-quarter growth in sales, but data center sales came in below expectations for the tech giant and clouded otherwise overall solid growth. A new partnership with Microsoft for virtual reality and a consistent shift away for reliance on chips for personal computers keep the stock a compelling buy. A stunning 82.4% of Intel sales come from overseas, the lion’s share of it in Asia, where the chips that it produces are used in personal computers, tablets and other personal electronic devices.

Intel investors receive a solid 3% dividend. UBS has a $40 price target, in line with the consensus target of $40.26. The shares ended Friday at $34.61.
Procter & Gamble

Despite a solid rally this year, shares are trading well below highs posted just a month ago. Procter & Gamble Co. (NYSE: PG) is a solid consumer staples stock for conservative investors to consider. It sells lots of very well-known household items that are essential for everyday life, and it operates through five segments: Beauty, Hair and Personal Care; Grooming; Health Care; Fabric Care and Home Care; and Baby, Feminine and Family Care.

The company posted solid earnings last quarter, and many on Wall Street feel that the new focus on a slimmed down product portfolio will help spur earnings growth and return the company to its long-time premium consumer staples multiple. Some analyst estimates for the next two years are 2% above current Wall Street expectations.

Procter & Gamble actually is innovative in its product development process and uses that to help ensure future growth and cash flow. This should provide investors years of steady growth and dividends. While currency headwinds have weighed on earnings and projections, the weaker dollar scenario should bode well for the future.

Shareholders are paid a 3.2% dividend. The $97 UBS price objective compares with the consensus price target of $94.06. The stock closed Friday at $83.58.

3M

This top industrial could really jump with an economic pickup. 3M Co. (NYSE: MMM) is a diversified, global manufacturer. Its businesses are technology-driven and organized under five segments: Consumer, Safety and Graphics, Electronics and Energy, Healthcare, and Industrial. Its popular brands include Scotch, Post-It, 3M and Thinsulate. The company also holds over 500 U.S. patents.

The company reported third-quarter financial results that were essentially in line with the consensus estimates from Thomson Reuters. Earnings per share were higher than in the same period of the previous year, but revenues were flat. 3M updated its full-year forecast by extending the upper range of the earnings per share forecast by a dime. The company now expects organic local-currency sales growth to be approximately flat, versus a previous range of 0% to 1%.

3M investors receive a decent 2.55% dividend. UBS has set its price target at $195, and the consensus target is $179.20. Shares closed most recently at $175.08.

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The bottom line from the election is that tax cuts and infrastructure spending look like they are a given. The old-school growth stocks look like they really make sense now for investors looking ahead to 2017.

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