Microsoft's (MSFT) stock eclipsed the $50 barrier last fall for the first time since March 2000. Michael Barclay, portfolio manager of the Columbia Dividend Income Fund (LBSAX) , said there is no reason why the reinvigorated tech giant should not break $60 in the near future.
"One of the things they have done very well in the last couple years under (CEO) Satya Nadella is pivot the company and really start to focus on where the puck is going in a sense, that being the cloud business," said Barclay.
Barclay added that Microsoft, down 8% year-to-date, still has the dominant enterprise software business which it can use to upsell customers to new cloud-based products.
The Columbia Dividend Income Fund is down 2.5% thus far in 2016, according to fund-tracker Morningstar. The $7.9 billion fund has returned 10% annually over the past five years, outpacing 92% of its Morningstar large-cap value peers.
Barclay is also bullish on Johnson & Johnson (JNJ) , up 1.1% thus far in 2016, saying that the blue-chip health care company has a tremendously strong balance sheet and a diversified business, both massive assets in an uncertain economic environment.
"One of the things we like about its pharmaceutical business is that it is less exposed to Medicaid versus a lot of the other pharmas," said Barclay. "We think given the rhetoric we are hearing in the election right now on drug pricing that should help Johnson & Johnson."
Exxon Mobil's (XOM) stock is down 9% in the past year, far outperforming fellow oil majors Chevron (CVX) and BP (BP) , which are down 21% and 31% respectively. Barclay said he likes Exxon's stock because the company has a strong downstream business that is helping to offset some of the impact of its upstream troubles.
"If prices stay where they are, there is going to be more pain in the energy sector," said Barclay. "Because of its triple A rating, Exxon will be able to go out and take advantage by picking up good companies at good prices."
Finally, Barclay is positive on J.P.Morgan Chase (JPM) , down 16% so far in 2016, saying the money center bank is "built for the future, has a great balance sheet and the best information in the banking industry".