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 institutional and high-net-worth clients with the best ideas across the investment spectrum. It is likely to continue doing so for years to come. We were somewhat surprised when the firm announced that it is anticipating three 25-basis-point rate cuts in September, October, and December, as well as similar cuts in March and June 2026.
This represents a significant revision from their earlier 2025 forecast, as Goldman Sachs has pushed forward its forecast for Federal Reserve interest rate cuts and now calls for the central bank to resume reductions in September (which is the consensus across Wall Street) rather than December, given that the inflationary effects of tariffs “look a bit smaller” than expected.
The Goldman Sachs Conviction List is a curated list of stocks that the firm’s research team believes have a high likelihood of outperforming the market. It is a tool for investors to identify stocks with strong growth potential, frequently updated to reflect changes in market conditions and company performance. The list aims to pinpoint stocks in which Goldman Sachs analysts have the “highest level of conviction” for outperformance. We screened the list for dividend-paying stocks that are likely to receive a significant tailwind as the Federal Reserve embarks on a rate-cutting cycle, and four are outstanding stocks with big and reliable dividends.
Why we recommend Goldman Sachs stocks
Founded in 1869, Goldman Sachs is the world’s second-largest investment bank by revenue and is ranked 55th on the Fortune 500 list of the largest United States corporations by total revenue. The Wall Street white-glove giant offers financing, advisory services, risk distribution, and hedging for the firm’s institutional and corporate clients.
AT&T
AT&T Inc. (NYSE: T | T Price Prediction) is the world’s fourth-largest telecommunications company, measured by revenue. The legacy telecommunications company has been undergoing a lengthy restructuring while lowering its dividend. Seventeen analysts have given the stock a Buy rating, indicating comprehensive Wall Street support. AT&T provides a range of telecommunications, media, and technology services worldwide. Its Communications segment offers wireless voice and data communications services.
AT&T sells through its company-owned stores, agents, and third-party retail stores:
- Handsets
- Wireless data cards
- Wireless computing devices
- Carrying cases
- Hands-free devices
AT&T also provides:
- Data
- Voice
- Security
- Cloud solutions
- Outsourcing
- Managed and provided professional services
- Customer premises equipment for multinational corporations, small and mid-sized businesses, and governmental and wholesale customers
Additionally, this segment provides residential customers with broadband fiber and legacy telephony voice communication services.
It markets its communications services and products under:
- AT&T
- Cricket
- AT&T PREPAID
- AT&T Fiber
The company’s Latin America segment provides wireless services in Mexico and video services in Latin America. This segment markets its services and products under the AT&T and Unefon brands.
Goldman Sachs has a $32 price target for the stock.
Duke Energy
Duke Energy Corp. (NYSE: DUK) is an American electric power and natural gas holding company headquartered in Charlotte, North Carolina. This is an excellent idea now. It is located in a growing part of the country and pays a hefty dividend. Duke Energy operates through two segments:
- Electric Utilities and Infrastructure (EU&I)
- Gas Utilities and Infrastructure (GU&I)
The EU&I segment generates, transmits, distributes, and sells electricity in the Carolinas, Florida, and the Midwest.
To develop electricity, Duke Energy uses the following:
- Coal
- Hydroelectric
- Natural gas
- Oil
- Solar and wind sources
- Renewables
- Nuclear fuel
This segment also sells electricity to municipalities, electric cooperative utilities, and load-serving entities.
The GU&I segment distributes natural gas to these customers:
- Residential
- Commercial
- Industrial
- Power generation
The segment also invests in pipeline transmission projects, renewable natural gas projects, and natural gas storage facilities.
The $138 Goldman Sachs price target is almost 14% above the current trading level.
Kodiak Gas Services
This is a way to play the energy sector from the services side, and the company pays shareholders a massive and secure dividend. Kodiak Gas Services Inc. (NYSE: KGS) is a contract compression service provider in the United States, serving as a vital link in the infrastructure that enables the production, transportation, and distribution of natural gas and oil.
The company’s segments include Contract Services and Other Services. The Contract Services segment comprises operating Company-owned and customer-owned compression, gas treating, and cooling infrastructure, enabling the production, gathering, processing, and transportation of natural gas and oil.
The Other Services segment consists of a broad range of services to support the needs of its customers, including:
- Station construction
- Customer-owned compression maintenance and overhaul,
- Freight and crane charges
- Parts sales
- Ancillary time and material-based offerings
Kodiak Gas Services offers its services to:
- Oil and gas producers
- Midstream customers in high-volume gas gathering systems
- Processing facilities
- Multi-well gas lift applications
- Natural gas transmission systems
Hitting the Goldman Sachs $43 target would be almost a 20% gain.
Valero
This is one of the safest ways for investors to play the energy sector as refining capacity has shrunk, and supply has increased. Valero Energy Corp. (NYSE: VLO) is a multinational manufacturer and marketer of petroleum-based and low-carbon liquid transportation fuels, as well as petrochemical products.
The company sells its products primarily in:
- The United States
- Canada
- The United Kingdom
- Ireland
- Latin America
Valero operates through three segments:
- The Refining segment encompasses the operations of its petroleum refineries, the associated activities involved in marketing its refined petroleum products, and the logistics assets that support these operations.
- The Renewable Diesel segment encompasses the operations of Diamond Green Diesel (DGD) and its associated activities, including marketing renewable diesel and renewable naphtha.
- The Ethanol segment includes the operations of its ethanol plants and the associated activities involved in marketing its ethanol and co-products.
Valero owns over 15 petroleum refineries located in the United States, Canada, and the United Kingdom.
Goldman Sachs has a target price of $162.
Five Safe High-Yield Dividend Kings That Every Retiree Should Own
Top Gaining Stocks
Top Losing Stocks