The ‘Trump trades’ that also give you income as you wait for policies to come to fruition

President-elect Donald Trump ‘s policies are expected to be a boon for certain sectors of the market. Broadly, the stock market has surged higher since the election last week, with the Dow Jones Industrial Average on pace for a record close on Monday . Among those who see bigger gains ahead are Wharton School finance professor Jeremy Siegel, who called Trump “the most pro-stock market president we have had in our history.” Yet, those who want to focus on specific names that may be poised to outperform — and pay dividends while investors wait for the administration’s plans to come to pass — could use history as a guide. CNBC screened for S & P 500 stocks that jumped at least 10% from Election Day 2016 through the end of that year, and popped 2% or more on Wednesday, the day after the election. In addition, analysts had to predict further gains ahead — the stocks have at least 1% upside to the average price target, according to FactSet. Finally, the names pay investors a dividend of at least 2%. The result is a list that is heavy in bank stocks, which are expected to get a boost from the new administration’s agenda. The S & P financial sector soared more than 6% on Wednesday after Trump’s victory. Bank of America is among those on Wall Street that think the banks’ move since Election Day has not been excessive. “We believe that the potential for a balanced regulatory backdrop (Basel End Game, stress test regime, GSIB surcharge/SLR), potential for a pick-up in domestic capex (positive for lending, capital raising), corporate tax rate stable-to-lower (US banks domestic heavy), pick-up in larger M & A as risk of anti-trust challenges fades (positive for Wall Street), a steeper UST yield curve (provided yields remain anchored) should all positively impact EPS growth and ROTCE outlooks (suggests multiple expansion for bank stocks until these get fully reflected in EPS forecasts),” analyst Ebrahim Poonawala wrote in a note Monday. Several dividend-paying energy names also made the cut. Oil and gas companies are seen as benefiting from the Trump administration, while clean energy names are expected to suffer. Here are the “Trump trades” that are expected to move higher — and also pay dividends. Regional banks popped after the election, with the SPDR S & P Regional Banking ETF (KRE) adding more than 13% on Wednesday. In addition to an improved regulatory environment and increased mergers and acquisitions, regional banks should also benefit from the likely steepening of the yield curve and accelerated loan growth, Piper Sandler analyst Mark Fitzgibbon wrote in a Nov. 6 note. “Now that the election has been decided, we think banks and their customers can again begin to plan for the future with a bit more confidence and expect a more benign regulatory environment,” he said. “While some challenges remain, we believe that loan growth should start to pick up in coming quarters.” Those regional banks that met CNBC’s criteria include Citizens Financial and Fifth Third Bancorp . Citizens gained 30% from Election Day 2016 through the end of that year and jumped 14% on Wednesday. It has a 3.7% dividend yield and 3% upside to the average price target, per FactSet. Fifth Third added 23% in the 2016 period that followed the election, and rose nearly 9% Wednesday. It pays a 3.2% dividend yield and has 4% upside to the average price target. Citizens’ stock has gained a whopping 42% so far this year, while Fifth Third shares have moved 37% higher. Large financial firms should also benefit. Citigroup rallied 8% the day after the election and added 19% in the 2016 time period. The big bank has a 3.3% dividend yield and 11% upside to the average price target, per FactSet. C YTD mountain Citigroup year to date Citi was upgraded on Friday to buy from neutral by Bank of America, which citied its attractive valuation compared with its peers and a lighter regulatory environment under Trump. Analyst Keith Horowitz also raised his price target on the stock to $54 from $46, suggesting nearly 20% upside from Friday’s close. Shares hit a 52-week high on Monday and are up 36% year to date. Among the energy names that made the list are Marathon Petroleum and Halliburton . The former has a 2.4% dividend yield and 13% upside to the average price target. It added nearly 4% the day after the election and gained 18% from Election Day 2016 through the end of that year. Marathon Petroleum’s stock has gained nearly 5% so far this year. Halliburton, which yields 2.3%, has the largest potential upside ahead — nearly 32% to the average price target. The company rose about 7% on Wednesday and added 14% during the 2016 time period. Halliburton reported an earnings and revenue miss last week, which the company said was due to a cyberattack in August and storms in the Gulf of Mexico. “Our full year expectations for free cash flow and cash return to shareholders remain unchanged, and we expect both to accelerate in Q4,” President and CEO Jeff Miller said in a statement. Shares are down more than 16% year to date.