Investing

5 BofA Securities US 1 Stocks to Buy Pay a Higher Dividend Than the S&P 500

Goldman Sachs

This financial services giant is a premier stock for those looking to add financials. Goldman Sachs Group Inc. (NYSE: GS) has a gigantic institutional equity, debt and derivatives business, an ultra-high net worth clientele, top investment banking and capital markets expertise, and the firm continues to be a dominant force around the world in the world of finance.

Its Investment Banking segment provides financial advisory services, including strategic advisory assignments related to mergers and acquisitions, divestitures, corporate defense activities, restructurings and spin-offs; middle-market lending, relationship lending and acquisition financing; as well as transaction banking services.

This segment also offers underwriting services, such as equity underwriting for common and preferred stock and convertible and exchangeable securities, and debt underwriting for various types of debt instruments, including investment-grade and high-yield debt, bank and bridge loans and emerging- and growth-market debt.

Goldman Sachs Global Markets segment is involved in client execution activities for cash and derivative instruments; credit products; mortgages; currencies; commodities; and equities; and provision of equity intermediation and equity financing services. It also offers clearing, settlement and custody services.

Holders of Goldman Sachs stock receive a 2.10% dividend. BofA Securities has set a $270 price target. The consensus target is $250.11, and the shares were last seen trading at $237.79.

Medtronic

This medical technology giant is a solid pick for investors looking for a safe position in the health care sector, and it was also a fairly recent addition to the US 1 list. Medtronic PLC (NYSE: MDT) develops, manufactures, distributes and sells device-based medical therapies to hospitals, physicians, clinicians and patients worldwide. It operates in four segments: Cardiac and Vascular Group, Minimally Invasive Therapies Group, Restorative Therapies Group and Diabetes Group.

The company announced earlier this summer that Blackstone’s life sciences division would invest $337 million into the research and development of its diabetes device technologies. Under the terms of the agreement, Medtronic will receive funding for four diabetes programs over the next several years. Medtronic’s engineering, clinical and regulatory teams will conduct the development work for the programs.

Investors receive a 2.07% dividend. The BofA Securities price target is $130. The consensus price target is $117.17, and Medtronic stock ended Monday at $111.97.


While none of the dividends are gigantic, compared with a puny 30-year Treasury bond of 1.63%, which has zero growth potential, they are all very attractive. In addition, all these companies have very strong and defensible business models and products, which should continue to excel over the years.