5 Goldman Sachs Conviction List Stocks to Buy Now That Pay Big Dividends

Citizens Financial

This stock remains a top financial pick across Wall Street and is a solid idea in a rising rate environment. Citizens Financial Group Inc. (NYSE: CFG) operates approximately 2,700 ATMs and 1,000 branches in 11 states in the New England, Mid-Atlantic and Midwest regions, as well as through online, telephone and mobile banking services, and it maintains approximately 130 retail and commercial non-branch offices.

The company operates in two segments. The Consumer Banking segment offers traditional banking products and services, including checking and savings accounts, home and education loans, credit cards, business loans, mortgage and home equity lending and unsecured product finance and personal loans, as well as wealth management and investment services to retail customers and small businesses. This segment also provides indirect auto finance for new and used vehicles through auto dealerships.

The Commercial Banking segment offers various financial products and solutions, such as loans and leasing, trade finance, deposit and treasury management, cash management, and foreign exchange and interest rate risk management solutions. It also provides loan syndications, corporate finance, merger and acquisition, and debt and equity capital markets capabilities.

Shareholders receive a solid 3.59% dividend. The Goldman Sachs price target of $54 is well above the consensus target of $45.89. Citizens Financial stock closed at $43.44 a share on Monday.

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Marathon Petroleum

This is a solid way for more conservative investors to play oil price increases, and it is a top energy idea on the conviction list. Marathon Petroleum Corp. (NYSE: MPC) is one of the largest independent petroleum refining and marketing companies in the United States.

Until just recently, the company operated approximately 2,750 retail sites under the Marathon and Speedway brands. In addition, it operates a logistics network of pipelines, barges, trucks and terminals that store and transport crude and products.

Last year, the company announced it would sell Speedway to 7-11 in an all-cash deal valued at $21 billion, or $16.5 billion after-tax. The sale transforms the company’s balance sheet and creates options to revisit the corporate structure of MPLX. Many on Wall Street feel that with Speedway removed, the dislocation in refining value becomes even more transparent as the company trades much cheaper than its industry peers do. The deal is expected to close very soon.

Shareholders receive a robust 4.35% dividend. The $65 Goldman Sachs price target compares with a $46.27 posted consensus target price. Marathon Petroleum closed most recently at $53.35 per share.