As the calendar turns over to 2025, leading Wall Street firms such as Goldman Sachs are releasing their top stock and sector picks for the new year. Typically, these are companies that analysts have an incredible conviction for. In addition, they often have good upside to the assigned price target and are bestowed with either a Buy or Overweight rating, depending on the company providing the coverage.

The Goldman Sachs research team is out with a sector model research piece focusing on the sectors they were optimistic about for the first six months. We were intrigued by two somewhat contrarian sector ideas: utilities and real estate. Utilities were strong in 2024 as the need for power for tech data centers, crypto mining, and artificial intelligence applications was thrust to the forefront. Real estate lagged somewhat in 2024. With rates coming down, albeit slower in 2025, both sectors have promise.

We screened the top Goldman Sachs ideas in the two sectors and found three companies that pay dependable and significant dividends and are top picks for the first six months of 2025. Both are Buy-rated and have a solid upside relative to the assigned target prices.

Why do we cover 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.

Edison International

Yielding 4.16% with plenty of upside, this is a value investor’s dream. Edison International (NYSE: EIX) generates and distributes electric power through its subsidiaries. The company supplies and delivers electricity to approximately 50,000 square miles of southern California, including residential, commercial, industrial, public authorities, agricultural, and other sectors.

Its transmission facilities consist of lines ranging from 55 kV to 500 kV and approximately 80 transmission substations; the distribution system consists of approximately 38,000 circuit miles of overhead lines, approximately 31,000 circuit miles of underground lines, and 730 distribution substations.

The Goldman Sachs price target is posted at $88.

Exelon

This top utility stock makes good sense now for conservative accounts and pays a dependable 4.11% dividend. Exelon Corp. (NYSE: EXC) is a utility services holding company engaged in the energy distribution and transmission businesses in the United States and Canada.

The company purchases and regulates retail sales of electricity and natural gas and the transmission and distribution of electricity and natural gas to retail customers.

It also offers support services, including:

• Legal
• Human resources
• Information technology
• Supply management
• Financial
• Engineering
• Customer operations
• Distribution and transmission planning
• Asset management
• System operations
• Power procurement services

The company serves:

• Distribution utilities
• Municipalities
• Cooperatives
• Financial institutions
• Commercial, industrial, governmental, and residential customers

Goldman Sachs has set a $39 target price objective.

VICI Properties

This real estate investment trust based in New York City specializes in casino and entertainment properties.

This is one of the top picks across Wall Street in the net lease group and is ideal for more conservative investors looking for gaming exposure and a rich 6.01% dividend. VICI Properties Inc. (NYSE: VICI) is an S&P 500 experiential real estate investment trust with one of the largest portfolios of market-leading gaming, hospitality, and entertainment destinations, including three iconic entertainment facilities on the Las Vegas Strip.

• Caesars Palace Las Vegas
• MGM Grand
• The Venetian Resort Las Vegas

VICI Properties owns 93 experiential assets across a geographically diverse portfolio of 54 gaming properties and 39 other experiential properties across the United States and Canada. The portfolio comprises approximately 127 million square feet and features approximately 60,300 hotel rooms and over 500 restaurants, bars, nightclubs, and sportsbooks.

Its properties are occupied by industry-leading gaming, leisure, and hospitality operators under long-term, triple-net lease agreements. VICI Properties has a growing array of real estate and financing partnerships with leading operators in other experiential sectors
including:

• Bowlero
• Cabot
• Canyon Ranch
• Chelsea Piers
• Great Wolf Resorts
• Homefield
• Kalahari Resorts

VICI Properties also owns four championship golf courses and 33 acres of undeveloped and underdeveloped land adjacent to the Las Vegas Strip.

The Goldman Sachs target price is $34.

U.S. Large Cap Dividend Stocks Should Roll in 2025: Our 4 Favorite Picks

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