Goldman Sachs Adds 2 Blue Chip Dividend Giants to Its List of Top Stock Picks

Investing

Published: September 15, 2024 6:19 am

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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 likely will not catch up to the hype-driven AI stocks soon.

One thing remains certain: with storm clouds gathering on the economic horizon, the risk of an escalating conflict in the Middle East, and the market once again very overbought, 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—something we got a taste of in July when the Nasdaq quickly slid into 10% correction territory.

We decided to screen the September Goldman Sachs U.S. Conviction List for new additions with solid total return potential that pay dependable dividends for those seeking passive income. We were not disappointed when the Wall Street behemoth added two blue-chip dividend companies to its Conviction List of top stock ideas.

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.

Conagra Brands

Conagra makes and sells products under various brand names in supermarkets, restaurants, and food service establishments.

This is the perfect company for nervous investors. It pays shareholders a big and safe 4.49% dividend. Conagra Brands Inc. (NYSE: CAG) and its subsidiaries operate primarily as a consumer packaged goods food company in the United States.

The company operates through four segments:

Grocery & Snacks
Refrigerated & Frozen
International
Foodservice

The Grocery & Snacks segment primarily offers shelf-stable food products through various retail channels.

The Refrigerated & Frozen segment provides temperature-controlled food products through various retail channels.

The International segment offers food products in various temperature states through retail and food service channels outside the United States.

The Foodservice segment offers branded and customized food products, including meals, entrees, sauces, and various custom-manufactured culinary products packaged for restaurants and other food service establishments.

The company sells its products under these familiar brands:

Birds Eye
Marie Callender’s
Duncan Hines
Healthy Choice
Slim Jim
Reddi-Wip
Angie’s
BOOMCHICKAPOP

The Goldman Sachs price target for the stock is set at $36.

IBM

IBM, nicknamed Big Blue, is an American multinational technology company.

The legacy blue-chip tech giant pays a solid 3.30% dividend and offers conservative investors a safer way to play the sector. International Business Machines Corp. (NYSE: IBM) and its subsidiaries provide integrated solutions and services worldwide.

The company operates through four segments:

Software
Consulting
Infrastructure
Financing

The Software segment offers a hybrid cloud and AI platform that allows clients to realize their digital and AI transformations across the applications, data, and environments in which they operate.

The Consulting segment focuses on skills integration for strategy, experience, technology, and operations by domain and industry.

The Infrastructure segment provides on-premises and cloud-based server and storage solutions and life-cycle services for hybrid cloud infrastructure deployment.

The Financing segment offers client and commercial financing that facilitates IBM clients’ acquisition of hardware, software, and services.

The company has strategic partnerships with various companies, including:

Hyperscalers
Service providers
Global system integrators
Software and hardware vendors, including Adobe, Amazon Web services, Microsoft, Oracle, Salesforce, Samsung Electronics, SAP, and others

The Goldman Sachs price target for the stock is posted at $220.

Five Tech Stocks That You’ve Never Heard of Pay High-Yield Dividends

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