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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.
Our screening of the Goldman Sachs list of Buy-rated dividend stocks located five top companies with solid total return potential and dependable dividends, presenting a big 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
Comerica
Comerica Bank is a regional commercial bank with 413 branches in the United States.
Based in Dallas, this fast-growing banking center giant pays a substantial 5.10% dividend. Comerica Inc. (NYSE: CMA | CMA Price Prediction) provides various financial products and services. The company operates through these segments:
- Commercial banking
- Retail banking
- Wealth management
- Finance
The Commercial Bank segment offers:
- Commercial loans and lines of credit
- Deposits
- Cash management
- Capital market products
- International trade finance
- Letters of credit
- Foreign exchange management services
- Loan syndication services
- Payment and card services for small and middle-market businesses, multinational corporations, and governmental entities
The Retail Bank segment provides:
- Personal financial services, such as consumer lending
- Consumer deposit gathering
- Mortgage loan origination and various
- Consumer products that include deposit accounts, installment loans, credit cards, student loans, home equity lines of credit
- Residential mortgage loans and commercial products and services to micro-businesses.
The Wealth Management segment offers products and services comprising:
- Fiduciary
- Private banking
- Retirement
- Investment management and advisory
- Investment banking and brokerage services
- Annuity products and life, disability, and long-term care insurance products
The Finance segment engages in the securities portfolio and asset and liability management activities.
Comerica operates in:
- Texas
- California
- Michigan
- Arizona
- Florida
- Canada
- Mexico
Eversource Energy
Eversource is an energy provider serving customers in Connecticut, Massachusetts, and New Hampshire.
This off-the-radar utility idea has enormous upside potential and could be a total return home run while paying a 5.06% dividend. Eversource Energy (NYSE: ES) is a public utility holding company, that engages in the energy delivery business.
The company operates through four segments:
- Electric Distribution
- Electric Transmission
- Natural Gas Distribution
- Water Distribution
It is involved in the transmission and distribution of electricity; solar power facilities; and distribution of natural gas.
The company operates regulated water utilities that provide water services to approximately 241,000 customers. It serves residential, commercial, industrial, municipal, and fire protection, and other customers in Connecticut, Massachusetts, and New Hampshire.
KeyCorp
KeyCorp is a bank holding company that engages in the provision of financial services.
This is another top regional bank that is very cheap at current levels for investors looking at financials and pays a big 5.68% dividend. KeyCorp (NYSE: KEY) operates as the holding company for KeyBank National Association, which provides various retail and commercial banking products and services in the United States.
It operates in two segments: Consumer Bank and Commercial Bank.
The company offers various deposits, investment products, and services to individuals and small and medium-sized businesses including:
- Commercial leasing
- Investment management
- Consumer finance
- Personal finance and financial wellness
- Student loan refinancing
- Mortgage and home equity lending
- Credit card
- Treasury
- Business advisory
- Wealth management
- Asset management
- Cash management
- Portfolio management
- Trust and related services
It also provides a suite of banking and capital market products, such as:
- Syndicated finance
- Debt and equity capital market products
- Commercial payments
- Equipment finance
- Commercial mortgage banking
- Derivatives,
- Foreign exchange
- Financial advisory, and public finance
- Commercial mortgage loans to consumer, energy, health care, industrial, public sector, real estate, and technology sectors for middle market clients.
In addition, the company offers community development financing, securities underwriting, brokerage, and investment banking services.
Kinder Morgan
Kinder Morgan is one of the largest energy infrastructure companies in North America.
This is one of the top energy stocks and remains a favorite across Wall Street. It pays a dependable 6.29% 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 OKE pipeline 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 and owns interests in/or operates oil fields and gasoline processing plants, as well as a natural oil pipeline system in West Texas. It holds and runs approximately 83,000 miles of pipelines and 144 terminals.
Kinetik Holdings
Kinetik, a midstream operator in the Delaware Basin, provides gathering, compression, processing, transportation, and water management services.
This company pays a strong 7% dividend and looks ready to break out to new 52-week highs. Kinetik Holdings Inc. (NASDAQ: KNTK) operates as a midstream company in the Texas Delaware Basin.
It operates through two segments:
- Midstream Logistics
- Pipeline Transportation
It provides gathering, transportation, compression, processing, stabilization, treating, storage, and transportation services for companies that produce natural gas, natural gas liquids, and crude oil, as well as water gathering and disposal services.
The company announced in June the closing of the sale of Durango Permian to a subsidiary of Kinetik Holdings. Consideration for the Durango Permian sale includes a combination of cash and equity, including contingent consideration payable upon the successful commissioning of Durango Permian’s Kings Landing Gas Gathering and Processing Development.
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