The artificial intelligence rally led by the so-called Magnificent 7 over the past two years has been remarkable if you owned those stocks. However, while most of the S&P 500 is doing well, it will not likely catch up to the hype-driven AI stocks soon.
One thing remains certain. With storm clouds possibly gathering on the economic horizon, the ongoing risk of an escalating conflict in the Middle East, and the market once again very overbought, many Wall Street strategists are cautious. They predict modest single-digit gains for 2025. However, a significant 20% or more sell-off could also be possible—something we tasted in July of 2024 when the Nasdaq briefly slid into 10% correction territory.
We decided to screen the Goldman Sachs U.S. Conviction List for stocks with solid total return potential that pay dependable dividends for those seeking passive income. Four top companies 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 investors. All four pay way above-average dividends and have price targets at least 10% above current trading levels and, in some cases, much higher than that.
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.
Brixmor Property Group
This publicly traded real estate investment trust invests in shopping centers.
This industry-leading real estate investment trust (REIT) looks ready to break out to a 52-week high and pays a solid 4.41% dividend. Brixmor Property Group Inc. (NYSE: BRX | BRX Price Prediction) owns and operates a high-quality national portfolio of open-air shopping centers.
The company’s 359 retail centers comprise approximately 64 million square feet of prime retail space in established trade areas. The company strives to own and operate shopping centers that reflect Brixmor’s vision to be at the center of the communities they serve and are home to a diverse mix of thriving national, regional, and local retailers.
Brixmor is a real estate partner to over 5,000 retailers, including TJX Companies, Kroger, Publix Super Markets, and Ross Stores. Goldman Sachs has a $34 target price objective of 13% above current levels.
Conagra Brands
Conagra Brands is an American consumer packaged goods holding company.
This consumer packaged food giant is a very safe idea that pays a massive 5.12% dividend. Conagra Brands Inc. (NYSE: CAG) operates primarily as a consumer packaged goods 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 food service 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.
Conagra sells its products under these well-known brands:
- Birds Eye
- Marie Callender’s
- Duncan Hines
- Healthy Choice
- Slim Jim
- Reddi-Wip
- Angie’s
- BOOMCHICKAPOP
The Goldman Sachs target price is $36, a massive 31% gain from current trading levels.
Philip Morris International
Philip Morris International is an American multinational tobacco company with products sold in over 180 countries.
This company has continued to grow its global market share and pays a big 4.15% divided. Philip Morris International Inc. (NYSE: PM) is one of the largest international cigarette producers, with a share of 28% of the global cigarette/heated tobacco market.
Key combustible brands include:
- Marlboro
- Parliament
- L&M
The company is commercializing the IQOS and ZYN brands, a heat-not-burn product, in over 40 markets, which could drive earnings in the future. Most on Wall Street believe Philip Morris International offers superior underlying growth prospects, both near-term and long-term.
The share price has backed up lately as investors have taken some profits, but Wall Street has embraced the growth potential of its reduced-risk products. All sales are outside the United States. The Goldman Sachs price target is $150, 13% from recent trading levels.
Suncor Energy
Suncor Energy is an integrated energy company based in Calgary, Alberta.
This is an excellent stock idea with a hefty 4.22% dividend and plenty of upside potential. Suncor Energy Inc. (NYSE: SU) operates as an integrated energy company in Canada, the United States, and elsewhere.
The company operates through three segments:
- Oil Sands
- Exploration and Production
- Refining and Marketing
The Oil Sands segment explores, develops, and produces bitumen, synthetic crude oil, and related products. This segment also engages in oil sands mining.
The Exploration and Production segment is involved in offshore operations on the East Coast of Canada and the marketing and risk management of crude oil and natural gas.
The Refining and Marketing segment refines crude oil products and distributes, markets, transports, and manages the risk of refined, petrochemical, and other purchased products through the retail and wholesale networks.
This segment trades crude oil, refined products, natural gas, and power.
Jefferies Says Buy Large Cap High-Yield Dividend Energy Giants Hand-Over-Fist
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