4 Goldman Sachs Conviction List Dividend Stocks Are Perfect Ideas for 2022

NRG generates electricity using natural gas, coal, oil, solar, nuclear and battery storage. It also provides system power, distributed generation, renewable products, backup generation, storage and distributed solar, demand response, energy efficiency, advisory and on-site energy solutions, as well as carbon management and specialty services.

In addition, NRG trades in electric power, natural gas and related commodities; environmental products; weather products; and financial products, including forwards, futures, options and swaps. Further, the company procures fuels; provides transportation services; and directly sells energy, services and products and services to retail customers under the NRG, Reliant, Green Mountain Energy, Stream, XOOM Energy and other brand names.

NRG Energy stock investors receive a 3.15% dividend. Goldman Sachs has a $53 price target, while the consensus figure is $46.30. The stock closed at $40.90 a share on Thursday.

Phillips 66

This extremely diversified energy company has a long and successful operating history. Phillips 66 (NYSE: PSX) operates through four segments: Midstream, Chemicals, Refining, and Marketing and Specialties. The company holds many of these assets within its master limited partnership, Phillips 66 Partners.

The company is able to benefit from the tax-advantaged structure while still operating a more diversified operating business that also contains many assets that are not ideal master limited partnership assets, such as its fast-growing chemical manufacturing business and its super-profitable refined products marketing business.

Investors receive a 4.27% dividend. The $93 Goldman Sachs price target compares to the $95.57 consensus target. Phillips 66 stock closed on Thursday at $86.78.

Realty Income

This is an ideal stock for growth and income investors looking for a safer, inflation-busting idea for this year. Realty Income Corp. (NYSE: O) is an S&P 500 company dedicated to providing stockholders with dependable monthly income. It is structured as a real estate investment trust (REIT), and its monthly dividends are supported by the cash flow from over 6,500 real estate properties owned under long-term lease agreements with commercial tenants.

To date, the company has declared 604 consecutive common stock monthly dividends throughout its 51-year operating history and increased the dividend 108 times since its public listing in 1994, garnering it a spot on the S&P 500 Dividend Aristocrats index.

Investors receive a 4.12% distribution. Goldman Sachs has set a huge $92 price objective. The $79.29 consensus target for Realty Income stock is still 10% or so higher than the $71.70 close on Thursday.

These four top stocks still have room to run and offer investors looking for income some dependable quarterly payments. They all make sense now, and those versed in writing covered calls could increase the income and total return potential using that strategy with these stocks.

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