AI is being used as a tool to make Financial sector companies more profitable. The sector is using AI for financial planning, underwriting, trading, and fraud protection, among other areas, allowing professionals to reduce time working on mundane tasks and instead focus on core tasks that drive their businesses. Financial advisors are using AI to draft financial plans and portfolios for clients, identifying patterns in spending and savings habits. In trading, AI allows algorithms to analyze large sums of data and historical trends in order to recognize patterns and movements in markets. Since it uses an algorithm, AI can digest and analyze huge sums of information in order to make trades faster, smarter, and more accurate. AI also is used in underwriting. By scanning a company's historical data and identifying trends, "AI-driven underwriting systems" can automate risk assessment, such as optimal loan-to-value and debt-to-income ratios. But artificial intelligence may be the most impactful in identifying and combating credit-card fraud. Card companies use AI models that analyze data patterns and customer spending habits almost instantly. As a result, suspicious payments or transactions are flagged immediately -- and the amount of time it takes for both the company and the customer to identify suspicious activity is decreased significantly. We believe that the use of AI will continue to grow and will help Financial sector companies be more successful. Here is a list of Argus BUY-rated stocks in the Financial sector that are leaders in the use AI.

Dividend income is often overlooked amid gyrations in the stock market. But dividends are an important element of return. Dividend income accounted for 42% of the total return of the S&P 500 between 1930 and 2012, according to Hartford Funds. And that's just the average. In some of those decades, dividends accounted for more than 50% of total returns and even 100% of returns. More recently, dividends have accounted for a smaller portion of returns, at around 15%-20%. Not all dividends are created equal, though, and it is important to understand the difference between the two main categories: high-yield stocks and dividend-growth stocks. High-yield stocks typically have dividends that pay out in the 5%-8% range. Though the income appears attractive, the share prices of high-yield stocks may be at risk. Dividend-growth stocks typically have lower yields, often in the 1.0%-2.5% range. But the lower-yielding dividends are not likely to be a huge component of cash flow, leaving management teams with other value-additive options for deploying cash. Further, while the yields are not as high, management teams may be more likely to boost the payouts over time, as earnings grow.

Based in Chicago, CME Group operates exchanges giving investors, suppliers, and businesses the ability to trade futures and derivatives based on interest rates, equity indexes, foreign currencies, energy, metals, and commodities. The CME was founded in 1898 and in 2002 completed its initial public offering. Since then, CME Group has consolidated parts of the industry by merging with crosstown rival, CBOT Holdings in 2007 before acquiring Nymex Holdings in 2008 and NEX in 2018. In addition, the company has a 27% stake in S&P Dow Jones Indices, making the Chicago Mercantile Exchange the exclusive venue to trade and clear S&P futures contracts. Through CME’s acquisition of NEX in 2018, it has also expanded into cash foreign exchange, fixed income trading, and collateral optimization.

This pick list highlights constituents of the Morningstar US Large Cap Index that we believe offer investors the best risk-adjusted return prospects. Stocks of large-cap companies where neither growth nor value characteristics predominate. Stocks in the top 70% of the capitalization of the U.S. equity market are defined as large cap.