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McManus' Portfolio Boost

New quarter, new strategy?

According to Wells Fargo Advisors' Tom McManus, sticking with the long-term plan may be the best one. While concerns persist over the potential for a pullback before year's end, McManus said investors should stay defensive in their portfolios and fully invested for the long-term.

On Closing Bell with Maria Bartiromo, McManus said "it makes sense to pursue growth over value, even a dividend growth strategy."

McManus said the real strategy is not through "dividend yield" but rather "dividend growth". What's the difference? Companies with dividend growth have the ability to sustain a dividend during difficult periods and the ability to grow it at a steady rate over time.

Not everything is rosy on Wall Street though. McManus told Bartiromo investors "should be prepared for a 10% to 20% pullback in the short-term." McManus said "there's a little bit more risk in our current stage of the economic recovery."

So where's the best bet for investors right now? McManus said "energy looks attractive, consumer staples, even utilties." However, "cyclical sectors may be ahead of themselves in terms of the recovery."

Donna Burton contributed to this article.

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