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The artificial intelligence rally over the past two years, led by the so-called Magnificent 7, has been remarkable if you owned those stocks. However, many companies in the S&P 500 are 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 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 tasted in July when the Nasdaq quickly slid into 10% correction territory.
Despite all the potential negatives investors face, Goldman Sachs recently raised its target price for the venerable S&P 500 to 6,000 by the end of 2024 and 6,300 over the next 12 months. In addition to increasing the targets, the Goldman team is positive on earnings per share growth in 2025 and raised their estimate to $268 from $256.
Given Wall Street’s preeminent investment bank’s bullish stance, we decided to screen their list of buy-rated dividend stocks. We found four stocks that pay big and dependable passive income dividends. All make sense for growth and income investors looking to capture total return gains for the rest of the year and 2025.
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
A global asset management firm providing investment management and research services worldwide.
This top money manager and financial giant pays shareholders a rich 8.25% dividend. AllianceBernstein Holding L.P. (NYSE: AB | AB Price Prediction) 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 and advises on:
- 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
One of the world’s largest producers and marketers of cigarettes and other tobacco-related products.
This tobacco company offers value investors a great entry point and a rich 8.14% 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 used to own over 10% of Anheuser-Busch InBev S.A. (NYSE: BUD), the world’s largest brewer. The company sold 35 million of its 197 million shares through a global secondary offering. That represents 18% of their holdings but still leaves a hefty 8% of the outstanding shares in their back pocket. They also announced a $2.4 billion stock repurchase plan partially funded by the sale.
MPLX
A diversified large-cap master limited partnership formed by Marathon Petroleum.
This company is one of the top holdings in the Alerian MLP energy exchange-traded fund and pays a healthy 7.61% 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
Whirlpool
In 2023, the Goldman Sachs pick reported approximately $19 billion in annual sales.
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 associated appliances and 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
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