Investing

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

PepsiCo

This top consumer staples stock fits the bill for worried investors. PepsiCo Inc. (NYSE: PEP) operates as a food and beverage company worldwide. Its Frito-Lay North America segment offers Lay’s and Ruffles potato chips; Doritos, Tostitos and Santitas tortilla chips; and Cheetos cheese-flavored snacks, branded dips and Fritos corn chips.

The Quaker Foods North America segment provides Quaker oatmeal, grits, rice cakes, natural granola and oat squares, as well as the recently name changed Aunt Jemima mixes and syrups, and Quaker Chewy granola bars, Cap’n Crunch cereal, Life cereal and Rice-A-Roni side dishes.

Pepsi’s North America Beverages segment offers beverage concentrates, fountain syrups and finished goods under the Pepsi, Gatorade, Mountain Dew, Diet Pepsi, Aquafina, Tropicana Pure Premium, Sierra Mist and Mug brands, as well as ready-to-drink tea and coffee, and juices.

Investors in PepsiCo stock receive a dependable 2.97% dividend. The Goldman Sachs price target is $157. The consensus target was last seen at $152.09, and the shares popped almost 3% on Monday to close at $137.80 apiece.

Raytheon Technologies

This stock has rallied smartly off its 52-week low but still 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 2.47% dividend. Goldman Sachs has set a $93 price objective on the shares. The posted consensus estimate is $85.06, and Raytheon Technologies stock closed on Monday at $76.92 a share.


These five top picks from Goldman Sachs Americas Conviction List all pay dividends that are much higher than the 30-year U.S. Treasury bond, which closed Monday with a 2.38% yield. While not guaranteed, they all probably offer more safety in a rising interest rate environment. All look poised for great total return potential and less potential volatility in a very overbought stock market.