In this article, we will take a look at the 8 Best Stocks for a Couch Potato Portfolio.
The Couch Potato Portfolio is a simple, straightforward investment strategy that has grown in favor among investors seeking a hands-off approach to building wealth. The portfolio, developed by financial columnist Scott Burns, is designed to endure volatile market conditions without requiring investors to make substantial adjustments to their asset allocation or goals.
To carry out this strategy, investors might allocate 50% of their investing funds to a low-cost, broad-based stock index fund and the other 50% to a bond index fund. As a testament to the portfolio’s durability, during 2018—the market’s first annual drop in almost ten years—the S&P 500 declined by 4.52%. In contrast, a couch potato portfolio consisting of the Vanguard Total Market Index ETF and the iShares TIPS Bond ETF declined only 3.31%, showing reduced losses.
That said, investors with more aggressive growth objectives or greater risk tolerance might find the Couch Potato Portfolio too conservative for their needs. According to the Lazy Portfolio ETF, as of March 2026, the Couch Potato Portfolio holds a compound annual return of only 7.88% over the previous 30 years, with an 8.74% variance. On the other hand, it experienced a maximum drawdown of -27.04%, which took 30 months to recover from.
Our Methodology
Although couch potato investing discourages individual stock trading in favor of index investment, we chose a hybrid approach and examined the Vanguard Total Stock Market ETF to identify some of its best holdings for this list. These equities were then further filtered based on several parameters, including hedge fund sentiment toward them, a history of stable dividend payments, and well-established businesses.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research shows we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
8. Bank of America Corporation (NYSE:BAC)
Bank of America Corporation (NYSE:BAC) ranks among the best stocks for a couch potato portfolio. On April 23, Freedom Broker boosted Bank of America’s (NYSE:BAC) price target to $65 from $61, maintaining a Buy rating on the company’s shares. The firm emphasized the bank’s solid first-quarter 2026 performance, which beat market forecasts in earnings per share, revenue, and key operating indicators. Bank of America announced GAAP EPS of $1.11, rising 25% year-over-year and 13% quarter-over-quarter, above the $1.01 estimate by 9.6%.
Deposit fees came in at 1.99%, beating expectations by 7 basis points. Meanwhile, fee income increased by 5 cents, mostly due to better asset management performance. Investment banking fees of $1.84 billion also met average forecasts, with advising, equity capital markets, and debt capital markets all in line.
In a similar vein, following the company’s Q1 2026 results, Truist Securities boosted its price target for Bank of America Corporation (NYSE:BAC) to $61 from $57 on April 16, keeping a Buy rating on the company’s shares. Truist raised its earnings per share expectations by 2% for 2026, discounting the first-quarter excess, and by 3% for 2027, owing to stronger revenues from both net interest income and fees, with only a slight adjustment from increased costs.
Along with greater growth expectations in trading, investment banking, and wealth management fees, the firm also included 8% net interest income growth this year, which is at the upper half of Bank of America’s revised guidance range.
Bank of America Corporation (NYSE:BAC), through its subsidiaries, provides a range of financial products and services to individual consumers, small- and middle-market businesses, institutional investors, large corporations, and governments worldwide.
7. Costco Wholesale Corporation (NASDAQ:COST)
Costco Wholesale Corporation (NASDAQ:COST) ranks among the best stocks for a couch potato portfolio. Costco’s defensive earnings strategy combines foundational digital growth (app visits increased by 63%), executive membership adoption at 75.8% of sales, along with operating leverage increases in gross margins and SG&A efficiency.
On May 7, Truist Securities restated a Hold rating and a $977 price objective for Costco Wholesale Corporation (NASDAQ:COST). The firm highlighted that higher gas prices generated an increase in volume at Costco locations. The ancillary portion of the firm grew in the mid-30% range, while gas costs rose 26.2%.
Truist stated that the company’s capacity to meet its increasingly value-driven user base is under greater strain due to its extreme value assurance.
Conversely, on April 17, Bernstein named Costco Wholesale Corporation (NASDAQ:COST) as one of its top consumer stocks. According to the firm, Costco Wholesale Corporation (NASDAQ:COST) is projected to gain from rising inflation and act as a defensive tool. The firm forecasts the stock to continue its upward trend that began in 2025, owing to its attractive value proposition for consumers experiencing inflationary pressures.
A membership-based warehouse club, Costco Wholesale Corporation (NASDAQ:COST) offers bulk discounts on an array of products, including food, electronics, and household products.
