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- High-yield dividend stocks will grow in popularity as interest rates dive.
- Dividend stocks are a perfect investment idea to generate passive income.
- Passive income is simple: own quality dividends that pay you for doing nothing. Don’t miss out on our brand-new “7 Things I Demand in a Dividend Stock” report. It includes two A++ dividend stocks and how to spot future dividend winners that can put your returns on hyperdrive. Access two legendary, high-yield dividend stocks Wall Street loves.
The artificial intelligence rally over the past almost two years, led by the so-called Magnificent 7, has been remarkable if you owned those stocks. However, most of the S&P 500, while higher in 2024, 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 economic horizon, the increasing 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 October Goldman Sachs Buy-rated dividend stock list for companies with solid total return potential that pay dependable high-yield dividends for those seeking passive income. Five top companies listed from the highest yield 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 dividend investors.
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 solid 8.20% 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
AllianceBernstein 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
One of the world’s largest producers and marketers of cigarettes and other tobacco-related products.
Goldman Sachs feels that this tobacco company offers value investors a great entry point and a 7.97% 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, the world’s largest brewer. Recently, the company announced it would sell 35 million of its 197 million shares through a global secondary offering.
MPLX
A diversified large-cap master limited partnership formed by Marathon Petroleum.
This company is not only a GoldmanSachs pick but one of the top holdings in the Alerian MLP energy exchange-traded fund and pays a healthy 7.54% dividend. MPLX L.P. (NYSE: MPLX) is primarily engaged in transporting crude oil and refined products and terminating in the U.S. 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.
Assets of MPLX include:
- Networks 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
The company 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, this Goldman Sachs pick reported approximately $19 billion in annual sales.
The potential for new home and condominium sales to increase in 2025 is a big positive for this company, which pays a dependable 6.76% 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
Kinetik
A midstream operator in the Delaware Basin that provides gathering, compression, processing, transportation, and water management services.
This company pays a strong 6.33% 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
Kinetek provides these services for companies that produce natural gas, natural gas liquids, crude oil, and water gathering and disposal services.
- Gathering
- Transportation
- Compression
- Processing
- Stabilization
- Treating
- Storage
- Transportation services for companies that produce natural gas, natural gas liquids, crude oil, and water gathering and disposal services
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