The artificial intelligence rally over the past year and a half, led by the so-called Magnificent 7 stocks, 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.

Our screening of the Goldman Sachs list of buy-rated dividend stocks has unearthed six top companies with solid total return potential and dependable dividends, presenting a promising opportunity for those seeking passive income.

These stocks are among the world’s most prestigious investment banks’ best dividend ideas, and they are likely to attract the attention of savvy investors. All pay at least a 5% or higher dividend.

Why we recommend Goldman Sachs stocks

Goldman Sachs is the acknowledged leader in the investment landscape on Wall Street and worldwide. The firm’s top-notch research department continues to provide clients with the best ideas across the investing spectrum and is likely to continue for years.

AllianceBernstein

This top money manager and financial giant pays shareholders a rich 8.45% dividend. AllianceBernstein Holding L.P. (NYSE: AB) is a publicly owned investment manager.

The firm manages separate client-focused portfolios for its clients and  primarily invests in:

• Common and preferred stocks
• Warrants and convertible securities
• Government and corporate fixed-income securities
• Commodities
• Currencies
• Real estate-related assets
• Inflation-protected securities

Alliance Bernstein employs:

• Quantitative analysis
• Long-term purchases
• Short-term purchases
• Trading
• Short sales
• Margin transactions
• Option strategies, including writing covered options, uncovered options, and spread strategies to make its investments

The firm obtains external research to complement its in-house research.

Altria

This tobacco company offers value investors a great entry point now and a rich 8.73% dividend. Altria Group Inc. (NYSE: MO) manufactures and sells smokable and oral tobacco products in the United States through its subsidiaries.

The company provides cigarettes primarily under the Marlboro brand, as well as:

• Cigars and pipe tobacco, principally under the Black & Mild brand
• Moist smokeless tobacco and snus products under the Copenhagen, Skoal, Red Seal, and Husky brands
• on! Oral nicotine pouches

It sells its tobacco products primarily to wholesalers, including distributors and large retail organizations, such as chain stores.

Altria owns over 10% of Anheuser-Busch InBev N.V. (NYSE: BUD), the world’s largest brewer. Recently, the company announced it would sell 35 million of its 197 million shares through a global secondary offering. 

Bristol-Myers Squibb

This top company remains a solid pharmaceutical stock to own long-term, offering an outstanding entry point and a massive 4.68% dividend. Bristol-Myers Squibb Co. (NYSE: BMY) discovers, develops, licenses, manufactures, and markets pharmaceutical products worldwide.

The company offers products in hematology, oncology, cardiovascular, and immunology therapeutic classes.

The company’s products include:

• Revlimid, an oral immunomodulatory drug for the treatment of multiple myeloma
• Opdivo for anti-cancer indications
• Eliquis, an oral inhibitor indicated for the reduction in risk of stroke/systemic embolism in NVAF and for the treatment of DVT/PE
• Orencia for adult patients with active RA and psoriatic arthritis, as well as reducing signs and symptoms in pediatric patients with active polyarticular juvenile idiopathic arthritis

The company also provides:

• Sprycel for the treatment of Philadelphia chromosome-positive chronic myeloid leukemia
• Yervoy for the treatment of patients with unresectable or metastatic melanoma
• Abraxane, a protein-bound chemotherapy product
• Implicit for the treatment of multiple myeloma
• Reblozyl for the treatment of anemia in adult patients with beta-thalassemia

Kinder Morgan 

This is one of the top energy stocks and remains a favorite across Wall Street. It pays a dependable 6.01% dividend. Kinder Morgan Inc. (NYSE: KMI) is an energy infrastructure company in North America. The company operates through Natural Gas, Products, Terminals, and CO2 segments.

The Natural Gas Pipelines segment:

• Owns and operates the interstate and intrastate natural gas pipeline and underground storage systems
• Natural gas gathering systems and natural gas processing and treating facilities
• Natural gas liquids fractionation facilities and transportation systems
• Liquefied natural gas liquefaction and storage facilities

The Products Pipelines segment owns and operates refined petroleum products, crude oil and condensate pipelines, associated product terminals, and petroleum OKEpipeline transmit facilities.

The Terminals segment owns and operates liquids and bulk terminals that store and handle various commodities, including:

• Gasoline
• Diesel fuel
• Chemicals
• Ethanol
• Metals
• Petroleum coke 
• Owns tankers

Lastly, the CO2 segment produces, transports, and markets CO2 to recover and produce crude oil from mature oil fields. It owns interests in and/or operates oil fields and gasoline processing plants and has a natural oil pipeline system in West Texas. It holds and runs approximately 83,000 miles of pipelines and 144 terminals.

MPLX

This company is one of the top holdings in the Alerian MLP energy exchange-traded fund and pays a healthy 8.38% dividend. MPLX L.P. (NYSE: MPLX) is primarily engaged in transporting crude oil and refined products and terminating in the US Midwest and Gulf Coast regions and natural gas gathering and processing in the northeast from its prior acquisition of MarkWest Energy in 2015. Independent U.S. refiner Marathon Petroleum Corp (NYSE: MPC) formed MPLX.

The company’s assets include:

• Network of crude oil and refined product pipelines
• Inland marine business
• Light-product terminals
• Storage caverns
• Refinery tanks
• Docks
• Loading racks and associated piping
• Crude and light-product marine terminals

MPLX also owns:

• Crude oil and natural gas gathering systems
• Pipelines, natural gas, and NGL processing and fractionation facilities in key U.S. supply basins

JP Morgan Has 5 Blue Chip Passive Income Stocks as Top Picks for May

Whirlpool

The potential for new home sales to increase is a big positive for this company, which pays a dependable 7.33% dividend. Whirlpool Corp. (NYSE: WHR) manufactures and markets home appliances and related products.

It operates through four segments:

• North America
• Europe
• Middle East and Africa
• Latin America and Asia

The company’s principal products include:

• Refrigerators, freezers, ice makers, and refrigerator water filters
• Laundry appliances and related laundry accessories
• Cooking and other small domestic appliances
• Dishwasher appliances and related accessories, as well as mixers

Whirlpool markets and distributes its products primarily under the:

• Whirlpool
• Maytag
• KitchenAid
• JennAir
• Amana
• Roper
• Admiral
• Affresh
• Gladiator
• Speed Queen
• Hotpoint
• Bauknecht
• Indesit
• Ignis
• Laden
• Privileg
• KIC
• Consul
• Brastemp
• Across
• Ariston
• Diqua
• Royalstar 

∴

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.