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5 Goldman Sachs Conviction List Dividend Stocks to Buy for 2021

Norfolk Southern

This top transport looks like a solid pick for the first quarter and all of 2021. Norfolk Southern Corp. (NYSE: NSC), together with its subsidiaries, engages in the rail transportation of raw materials, intermediate products and finished goods.

The company also transports overseas freight through various Atlantic and Gulf Coast ports, provides logistics services and operates scheduled passenger trains. In addition, the company engages in the acquisition, leasing and management of coal, oil, gas and minerals; development of commercial real estate and telecommunications; and leasing or sale of rail property and equipment.

Investors in Norfolk Southern stock receive a 1.58% dividend. Goldman Sachs has set a $265 price objective. The consensus figure is just $207.26, but shares were last seen trading at $237.61 apiece.

Raytheon Technologies

This stock is down a stunning 20% versus this time last year and offers perhaps the best value in the defense and aerospace sector. Raytheon Technologies Corp. (NYSE: RTX) is an industry leader in defense, government electronics, space, information technology and technical services.

With a history of innovation spanning 97 years, Raytheon provides state-of-the-art electronics, mission systems integration, C5I products and services, sensing, effects and mission support for customers in more than 80 countries.

In 2019, United Technologies and Raytheon agreed to merge their businesses to create a new aerospace and defense powerhouse. The two companies received unanimous approval from their respective boards, and the merger is finally complete, with the new company now called Raytheon Technologies.

Shareholders receive a 2.66% dividend. The Goldman Sachs price objective is $91. The posted consensus target is $78.05, and Raytheon Technologies stock closed at $71.51.


These five top stocks from the Goldman Sachs Americas Conviction List for 2021 offer investors a degree of safety and total return potential. All make sense for long-term growth investors looking to add to their equity weighting but wanting to avoid overbought and crowded trades.