RBC Projects S&P 500 Rally Extending into 2026, Highlights Dividend Stocks
RBC Capital Markets anticipates the current equity rally will persist through 2026, setting a preliminary S&P 500 target of 7,100 for next year—a 6.8% gain from current levels. US equity strategy head Lori Calvasina notes the index appears on an upward trajectory, though warns of potential volatility through year-end 2025 due to seasonal patterns and valuation pressures in mega-cap tech.
The firm's analysts are pivoting toward high-yield opportunities, screening for dividend stocks that combine income generation with growth potential. This approach reflects a strategic shift as markets transition from the tech-led rally of 2025 to a broader-based advance.