All the brokerage firms and banks that we follow here at 24/7 Wall St. keep a list for their institutional and retail clients of high-conviction stock picks. These are generally the companies they not only like on a longer term basis but usually those stocks with big upside to the assigned target price. With October almost over and the final quarter of 2021 rolling along, many firms on Wall Street have tweaked their lists to account for potential changes the rest of the year.

The analysts at Raymond James who contribute to the firm’s well-respected Analysts Current Favorites list of stocks to buy have to provide one stock in their coverage space for inclusion in the list, and hence it is considered the favorite choice.

We screened the list looking for stocks that are not overextended or overbought and also pay solid and dependable dividends. We found four that look like very good ideas for growth and income investors looking to reset portfolios for the rest of the year. It is important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.

Banner

This is a more off-the-radar western U.S. bank that offers outstanding total return potential. Banner Corp. (NASDAQ: BANR) operates as the bank holding company for Banner Bank, which provides commercial banking and financial products and services to individuals, businesses and public sector entities in the United States. It accepts various deposit instruments, including interest-bearing and non-interest-bearing checking accounts, money market deposit accounts, regular savings accounts and certificates of deposit, as well as treasury management services and retirement savings plans.

The company also provides commercial real estate loans, including owner-occupied, investment properties and multifamily residential real estate loans; construction, land and land development loans; residential mortgage loans; commercial business loans; agricultural loans; and consumer and other loans, such as home equity lines of credit, automobile, and boat and recreational vehicle loans, as well as loans secured by deposit accounts.

As of December 31, 2020, it operated 155 branch offices, including 152 Banner Bank branches and three Islanders Bank branches, all located in Washington, Oregon, California and Idaho. It also operates 18 Banner Bank loan production offices located in those same four states. The company was founded in 1890 and is headquartered in Walla Walla, Washington.

Shareholders receive a solid 2.75% dividend. Raymond James has a $63 price target on the shares, which compares with the lower $60.40 consensus and Thursday’s closing print of $59.53.

This is a solid value buy in the health care sector. Cigna Corp. (NYSE: CI) is a major health services organization that provides insurance and related products and services in the United States and internationally. All products and services are provided exclusively by or through operating subsidiaries of Cigna, including Cigna Health and Life Insurance Company, Life Insurance Company of North America, Cigna Life Insurance Company of Canada and their affiliates.

The health care giant offers an integrated suite of health services, such as medical, dental, behavioral health, pharmacy, vision, supplemental benefits and other related products, including group life, accident and disability insurance. Cigna maintains sales capability in 30 countries and jurisdictions, and it has approximately 86 million customer relationships throughout the world.

Investors in Cigna stock receive a 1.85% dividend. Raymond James has a price target of $275, and the consensus target was last seen at $260.88. The shares closed trading at $216.23 on Thursday.

Kite Realty

The shares of this company have had a nice move and look poised to trade higher. Kite Realty Group Trust (NYSE: KRG) is a full-service, vertically integrated real estate investment trust (REIT) that provides communities with convenient and beneficial shopping experiences.

The company connects consumers to retailers in desirable markets through its portfolio of neighborhood, community and lifestyle centers. Using operational, development and redevelopment expertise, the company continuously optimizes its portfolio to maximize value and return to its shareholders.

Shareholders receive a very nice 3.21% distribution. The $25 Raymond James price target compares with the $24.50 consensus estimate. The shares ended Thursday trading at $21.18 per share.

This is a very solid play for income investors looking for a reasonably safe vehicle. Redwood Trust Inc. (NYSE: RWT) operates as a specialty finance company in the United States. The company operates through three segments.

The Residential Lending segment operates a mortgage loan conduit that acquires residential loans from third-party originators for subsequent sale, securitization or transfer to its investment portfolio. This segment also offers derivative financial instruments to manage risks associated with residential loans.

The Business Purpose Lending segment operates a platform that originates and acquires business purpose loans, such as single-family rental and bridge loans for subsequent securitization or transfer into its investment portfolio.

The Third-Party Investments segment invests in residential mortgage-backed securities issued by third parties, as well as in K-Series multifamily loan securitizations and SLST reperforming loan securitizations. This segment also offers servicer advance and other residential and multifamily credit investments.

The company qualifies as a REIT for federal income tax purposes, and it intends to distribute at least 90% of its taxable income as dividends to shareholders.

Shareholders will pocket a sweet 4.93% distribution. Raymond James has set a $16 price target. The consensus target for Redwood Trust stock is lower at $15.25. Thursday’s closing share price was $13.99.

Valero Energy

This Wall Street favorite is a very solid energy play for investors who are more conservative and looking for safer ideas. Valero Energy Corp. (NYSE: VLO) is one of the largest independent petroleum refining and marketing companies in the United States. It is based in San Antonio, Texas; owns 13 refineries in the United States, Canada and Europe; and has a total throughput capacity of around 2.5 million barrels per day.

Valero also is a joint venture partner in Diamond Green Diesel, which operates a renewable diesel plant in Norco, Louisiana. Diamond Green Diesel is North America’s largest biomass-based diesel plant.

Valero sells its products in the wholesale rack or bulk markets in the United States, Canada, the United Kingdom, Ireland and Latin America. Approximately 7,400 outlets carry Valero’s brand names.

Investors receive an outstanding 4.78% dividend. Raymond James analysts have a massive $88 price target. The consensus target is $86.76. Valero Energy stock closed on Thursday at $82.00 per share.

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While these stocks may not be making any parabolic moves higher soon, they are safer ideas for nervous investors to move to as we remain in the seasonal rocky time of the trading year. Readers should note that REIT distributions can contain return of principal.

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