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.
6. Walmart Inc. (NASDAQ:WMT)
Walmart Inc. (NASDAQ:WMT) ranks among the best stocks for a couch potato portfolio. On May 7, TD Cowen increased its price target for Walmart Inc. (NASDAQ:WMT) to $150 from $145, while keeping a Buy rating on the company’s shares. The firm anticipates Walmart’s strength to persist into the first quarter, aided by strong grocery traffic and softer general retail comparisons. TD Cowen expects the company to outperform the Street’s 3.9% comparable sales estimate and reiterate its full-year outlook.
The firm predicts that investors will continue to prioritize operational income durability above headline acceleration. However, it added that valuation remains a common investment concern.
Meanwhile, after visiting Walmart’s fashion pop-up store, D.A. Davidson reaffirmed a Buy rating and a $150 price objective for the company’s shares. The store specializes in high-quality, affordable “trend-forward” clothes, such as the Devil Wears Prada x Scoop collaboration.
According to D.A. Davidson, Walmart Inc. (NASDAQ:WMT) has had success in fashion in recent years, with the company gaining above-average market share among higher-income consumers.
Walmart Inc. (NASDAQ:WMT) operates as a technology-powered omnichannel retailer. The company operates retail and wholesale stores and clubs, as well as e-commerce websites and mobile apps.
While we acknowledge the potential of WMT to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than WMT and that has 100x upside potential, check out our report about the cheapest AI stock.
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