Many investors are familiar with this larger regional banking play. Regions Financial Corp. (NYSE: RF) is one of the nation’s largest full-service providers of consumer and commercial banking, wealth management, mortgage and insurance products and services. It serves customers across the South, Midwest and Texas, and through its subsidiary, Regions Bank, operates approximately 1,500 banking offices and 1,900 ATMs.
The company’s lending portfolio focuses primarily on residential mortgages, home equity, commercial mortgage and commercial and industrial loans. These short-term loans may have an interest rate based on the LIBOR rate or prime rate and are secured by collateral owned by the business requesting the loan.
Investors receive a 4.34% dividend. The $17 Goldman Sachs price target compares with the $17.42 consensus target. The shares closed most recently at $13.66
This Wall Street and Goldman Sachs favorite is a solid play for conservative balanced accounts. Valero Energy Corp. (NYSE: VLO) is the largest independent petroleum refining and marketing company in the United States. It is based in San Antonio, Texas; owns 13 refineries in the United States, Canada and Europe; and has total throughput capacity of around 2.5 million barrels per day.
Valero also is a joint venture partner in Diamond Green Diesel, which operates a renewable diesel plant in Norco, Louisiana. Diamond Green Diesel is North America’s largest biomass-based diesel plant.
Valero sells its products in the wholesale rack or bulk markets in the United States, Canada, the United Kingdom, Ireland and Latin America. Approximately 7,400 outlets carry Valero’s brand names.
Investors receive a 4.57% dividend. The Goldman Sachs price target is $92. The consensus target is much higher at $101.75, and shares were last trading at $76.00.
This top telecommunications company offers tremendous value. Verizon Communications Inc. (NYSE: VZ) is a global leader in delivering the digital world. Verizon Wireless operates America’s self-described most reliable wireless network, with 109.5 million retail connections nationwide.
Verizon also provides converged communications, information and entertainment services over America’s most advanced fiber-optic network, and it delivers integrated business solutions to customers worldwide.
Verizon investors receive a 4.32% dividend. Goldman Sachs has set a $67 price target. The consensus target is $59.95, and shares closed at $56.72.
These five top picks from the Goldman Sachs Dividend-Growth basket not only are priced right but pay dependable dividends. We are clearly in a vulnerable market, and while the economy is still good, indicators have slowed, the August volatility and doldrums are upon us, and the geopolitical and domestic political arenas remain very volatile.