Sustainable Impact investing continues to grow. According to Opimas, a management consultancy focused on global capital markets, global assets under management in ESG strategies grew to $40.5 trillion in 2020, doubling in four years and tripling in eight. As assets have flowed in, SRI investing has evolved over the past 40 years. Now, instead of merely identifying industries to avoid, the discipline promotes "sustainable" business practices across all businesses that can have an "impact" on global issues such as workers' rights, poverty, hunger, and the climate. Based on numerous requests from clients, we have compiled a portfolio of companies followed by Argus Research that are in position to have this type of "sustainable impact" on the environment, workplace, and community. These firms have exemplary records not only in delivering on the bottom line, but also in improving the environment, contributing to community relations, and showing respect for their employees. We built our portfolio by identifying companies that are BUY-rated by Argus analysts and also score well on ESG (Environmental, Social and Governance) criteria established by the JUST Capital Foundation. JUST Capital utilizes a combination of polling, data-driven research, and strategic engagement to shift behaviors and activities in corporate America and the financial markets. JUST Capital's mission is to drive measurable corporate change to create a stakeholder-centric, inclusive form of capitalism that reflects the priorities of the American public. JUST ranks the Russell 1000 on these criteria against a scale of 1-100. Here are company highlights from the Argus U.S. ESG Model Portfolio.

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.

The Commerce Department has reported that 1Q21 GDP rose at a 6.4% rate -- in line with the advance estimate announced last month. As we typically do for the second estimate, let's take a closer look at the key contributing sectors to GDP. First, the Consumer. During 1Q, personal consumption expenditures grew at an 11% pace and contributed 60.8% of core demand (which we define as personal consumption expenditures, equipment and intellectual property spending, housing, exports and government expenditures). This is in line with the 10-year average, as the consumer sector, which is the most-important component of the economy, is continuing to recover from the impact of the pandemic. Capital investments into equipment rose 13% and accounted for a consistent 5.3% of total GDP, while capital investments into intellectual property rose 17% and accounted for a high 4.4% of total GDP, compared to the historical average of 3.7%. Exports remained under pressure (accounting of 9.3% of total demand compared to historical average of 10.8%) as did government (accounting for 15.9% of total demand compared to historical average of 16.5%). It is our thesis that as U.S. GDP recovers to pre-COVID-19 levels, various sectors will recover at different paces. We look for consumer spending and capital investments into IP to be among the leading contributors to recovery.

Stocks rose on Thursday, recovering some of their recent losses, as investors weighed earnings from Cisco and Kohl's and new weekly employment data. Cisco posted better-than-expected fiscal 3Q revenue and earnings, though management projected below-consensus EPS in 4Q. Kohl's also reported strong fiscal first-quarter results, but disappointed investors with lower-than-expected full-year sales guidance. KSS shares fell 10%. On the employment front, first-time jobless claims fell to a new pandemic era low of 444,000, down from the prior week and below consensus. However, continuing claims rose to 3.751 million, up from 3.655 million a week earlier and above the consensus forecast of 3.62 million. The Dow rose 0.55%, the S&P 1.06%, and the Nasdaq 1.77%. Crude oil fell more than 2% to $62 per barrel, while gold fell $4 to $1878 per ounce.

Often overlooked amid gyrations in the stock market is dividend income, which is an important element of total return. Between 1930 and 2012, dividend income accounted for 42% of total return of the S&P 500, according to Hartford Funds. And that's just the average. In some decades, dividends accounted for more than 50% of total returns and even 100% of returns. More recently, dividends have accounted for 15%-20% of returns. Still, in 2018, dividend payments softened the blow when most market indices declined as the Federal Reserve hiked rates. 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.

The Portfolio Selector features the Argus Focus List, a group of 30 "best idea" stocks generated and regularly updated by Argus' analysts and investment policy committee. It also includes the director of research’s monthly investment strategy column, stock recommendations and sector picks, economic forecasts, and an asset allocation model. This month, the Focus List additions are Monster Beverage Corp. (MNST); Restaurant Brands Intl In (QSR); General Dynamics Corp. (GD); HCA Healthcare Inc (HCA) and the Focus List deletions are Peloton Interactive Inc (PTON); Clorox Co. (CLX); Lockheed Martin Corp. (LMT); Regeneron Phars, Inc (REGN).

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.

Stocks kept the momentum going in April, and are now up almost 12%, including dividends, in the year-to-date. Our analysts have been progressing through earnings season, and have come across many stocks in coverage that have approached target prices. We set target prices through our valuation framework, which includes analysis of historical multiples, peer multiples, future dividends, and cash flows. After adjusting the models for the latest earnings and dividend information -- most of which has been good -- here are some of the stocks on which we have raised target prices over the past month. All stocks are rated BUY at Argus.

Stocks recovered from midday losses on Thursday afternoon, led by the Communication Services and Financial sectors. Facebook shares rose more than 7% after the company posted much better than expected 1Q sales and earnings, along with an increase in daily active users. On the economic front, the Commerce Department reported that U.S. GDP rose at a 6.4% annualized rate in the first quarter, above the consensus forecast of 6.1%. First-time jobless claims fell to 553,000 for the week ended April 24, down from a revised 566,000 a week earlier but above the consensus forecast of 540,000. Continuing claims rose to 3.66 million, up from 3.65 million a week earlier. The Dow rose 0.71%, the S&P 0.68%, and the Nasdaq 0.22%. Crude oil traded near $65 per barrel, while gold fell slightly to $1773 per ounce.

Sustainable Impact Investing is gaining traction with the global investment community. In January 2020, BlackRock CEO Lawrence Fink, who oversees approximately $9 trillion in assets, announced that his firm would be investing in companies that are making progress on sustainability. He doubled down in his January 2021 letter, calling on company managements to disclose their plans for making their businesses "compatible with a net-zero economy" by 2050. As assets have flowed in over the past 40 years, Sustainable Impact Investing has evolved. The discipline, originally known as Socially Responsible Investing, focused at first on excluding companies that conducted business in South Africa, or participated in industries such as tobacco, alcohol, and firearms. But the performance of these initial strategies lagged, and the approach has been modified. Now, instead of merely identifying industries to avoid, the discipline promotes "sustainable" business practices across all industries that can have an "impact" on global issues such as the climate, hunger, poverty, disease, shelter, and workers' rights.