As the aging bull market presses ahead, it is pretty easy to see there has been a big rotation out of growth and momentum stocks and into value and cyclical ones. Given the massive move since the market lows of March 2020, many investors sense that it is time to move to stocks that still have growth potential going forward but also pay a solid dividend. Despite some hand wringing over higher interest rates, they remain near generational lows across the board.
We decided to screen the Goldman Sachs Americas Conviction List, which is a collection of the top equity ideas at the firm, looking for stocks that paid a solid and dependable dividend that was higher than the S&P 500 yield of 1.45% and the 30-year U.S. Treasury bond of 2.23%.
We found five that look like outstanding total return ideas now, and all are positioned well for the rest of 2021 and beyond. It is important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.
Bristol Myers Squibb
This remains a solid pharmaceutical stock to own long term and offers among the best values now for investors. Bristol Myers Squibb Co. (NYSE: BMY) is a global pharmaceutical company focused on discovering, developing, licensing and marketing chemically synthesized drugs or small molecules and biologics in various therapeutic areas, including virology comprising human immunodeficiency virus infection (HIV), oncology, neuroscience, immunoscience and cardiovascular.
The company’s products include the following:
- Opdivo for anti-cancer indications
- Eliquis, an oral inhibitor targeted at stroke prevention in adult patients with non-valvular atrial fibrillation, and the prevention and treatment of venous thromboembolic disorders
- Orencia for adult patients with active RA and prostate-specific antigen, as well as reducing signs and symptoms in pediatric patients with active polyarticular juvenile idiopathic arthritis.
Shareholders receive a 3.04% dividend. Goldman Sachs has a massive $90 price target on the shares, while the Wall Street consensus target is $75.13. Bristol Myers Squibb stock closed trading on Thursday at $64.46 per share.
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