The artificial intelligence rally over the last year and a half, led by the so-called Magnificent 7, has been remarkable if you owned those stocks. However, most of the S&P 500 is treading water and will not likely catch up to the hype-driven AI stocks soon.

One thing remains certain: with storm clouds gathering on the horizon and the risk of an escalating conflict in the Middle East, many Wall Street strategists are cautious, predicting modest single-digit gains for the remainder of 2024. However, a significant 20% or more sell-off could also be possible.

We decided to screen the April Goldman Sachs U.S. Conviction List for stocks with solid total return potential that pay dependable dividends for those seeking passive income. Six top companies caught our eye, and when they are among the top stock picks at the world’s most prestigious investment bank, they likely will also catch the eye of savvy investors.

Amgen

This biotech giant remains a top stock for investors to buy and a safer way to play the massive potential growth in biosimilars while paying a solid 3.37% dividend. Amgen Inc. (NASDAQ: AMGN) discovers, develops, manufactures, and delivers human therapeutics worldwide.

Amgen focuses on:

• Inflammation
• Oncology/hematology
• Bone health
• Cardiovascular disease
• Nephrology
• Neuroscience

The company’s products include:

• Enbrel to treat plaque psoriasis, rheumatoid arthritis, and psoriatic arthritis
• Neulasta reduces the chance of infection due to a low white blood cell count in patients with cancer
• Prolia to treat postmenopausal women with osteoporosis
• Xgeva for skeletal-related events prevention
• Otezla for the treatment of adult patients with plaque psoriasis, psoriatic arthritis, and oral ulcers associated with Behcet’s disease
• Aranesp to treat a lower-than-normal number of red blood cells and anemia
• KYPROLIS to treat patients with relapsed or refractory multiple myeloma
• Repatha reduces the risks of myocardial infarction, stroke, and coronary revascularization

Citigroup

This is a top bank that Warren Buffett bought a massive $2.5 billion worth of stock in the summer of 2022. The stock pays a dependable 3.55% dividend. Citigroup Inc. (NYSE: C) is a leading global diversified financial service company that provides consumers, corporations, and governments with a broad range of financial products and services. 

Citigroup offers:

• Consumer banking and credit
• Corporate and investment banking
• Securities brokerage
• Transaction services
• Wealth management services.

Citi operates and does business in more than 160 countries/ jurisdictions in North America, Latin America, Asia, Europe/Middle East and Africa (EMEA).

Trading at a reasonable 10.3 times estimated 2024 earnings, this company looks very reasonable in what remains a volatile stock market and in a sector that has dramatically lagged but looks to be gaining ground. 

Constellation Brands

If there is any company whose products stay in style, it’s this one, which pays a 1.36% dividend. Constellation Brands Inc. (NYSE: STZ), together with its subsidiaries, produces, imports, markets, and sells beer, wine, and spirits in the United States, Canada, Mexico, New Zealand, and Italy.

The company provides beer primarily under these popular brands:

• Corona Extra
• Corona Premier
• Corona Familiar
• Corona Light
• Corona Refresca
• Corona Hard Seltzer
• Modelo Especial
• Modelo Negra
• Modelo Chelada
• Victoria
• Vicky Chamoy
• Pacifico

It also offers wine under:

• Cook’s California Champagne
• Kim Crawford
• Meiomi
• Mount Veeder
• Ruffino
• SIMI
• My Favorite Neighbor
• Robert Mondavi Winery
• Schrader
• The Prisoner Wine Company

Spirits are sold under the Casa Noble, Copper & Kings, High West, Mi CAMPO, Nelson’s Green Brier, and SVEDKA brands.

Schlumberger

This top oil services company is expected to benefit from increased global exploration and production spending and pays a 2.12% dividend. Schlumberger Limited (NYSE: SLB) is the world’s largest provider of services and equipment used in the drilling, evaluation, completion, production, and maintenance of oil and natural gas wells.

The company operates through four divisions:

• Digital & Integration
• Reservoir Performance
• Well Construction
• Production Systems

The company provides field development and hydrocarbon production, carbon management, and integration of adjacent energy systems; reservoir interpretation and data processing services for exploration data; and well construction and production improvement services and products.

With a strong commitment to innovation, the company also provides information on subsurface geology and fluids evaluation, open and cased hole services, exploration and production pressure and flow-rate measurement services, and pressure pumping, well stimulation, and coiled tubing equipment solutions.

In addition, the company offers:

• Mud logging
• Directional drilling
• Measurement-while-drilling
• Logging-while-drilling services
• Engineering support services
• Supplies drilling fluid systems
• Designs, manufactures, and markets roller cone and fixed cutter drill bits
• Bottom-hole-assembly and borehole enlargement technologies
• Well cementing products and services
• Well planning, drilling and engineering
• Supervision, logistics, procurement, and contracting of third parties
• Drilling rig management solutions
• Drilling equipment and services
• Land drilling rigs and related services

Further, it provides artificial lift production equipment and optimization services;

• Supplies packers, safety valves, sand control technology
• Various intelligent, well completions technology and equipment
• Designs and manufactures valves, chokes, actuators, and surface trees

Schlumberger also offers OneSubsea, an integrated solutions, products, systems, and services, including wellheads, subsea trees, manifolds and flowline connectors, control systems, connectors, and services.

Simon Property Group

This leading company has rallied well off the 2023 lows, and is offering patient investors a hefty 5.39% dividend. Simon Property Group Inc. (NYSE: SPG) invests in the global real estate markets.

The company invests, owns, manages, and develops properties.

Simon Property Group primarily invests in:

• Regional malls
• Premium outlets
• Mills
• Community/lifestyle centers

Through its subsidiary partnership, it owns or has an interest in about 230 properties in the US and Asia.

The company also has a 28.9% interest in Klepierre, a European REIT with over 260 shopping centers in 13 countries.

Southern Company

This large-cap utility leader pays a solid 4.07% dividend. Southern Company (NYSE: SO), through its subsidiaries, engages in the generation, transmission, and distribution of electricity.

It operates through three segments:

• Gas Distribution Operations
• Gas Pipeline Investment
• Gas Marketing Services

The company also develops, constructs, acquires, owns, and manages power generation assets, including renewable energy projects, and sells electricity in the wholesale market; and distributes natural gas in Illinois, Georgia, Virginia, and Tennessee, as well as provides gas marketing services, gas distribution operations, and gas pipeline investments operations.

Southern Company serves approximately 8.8 million electric and gas utility customers. Further, the company offers digital wireless communications and fiber optics services.

 

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