Goldman Sachs Has 5 Conviction List Dividend Stocks to Buy That Fight Inflation


This is one of the top picks across Wall Street in its sector and an outside way to play the electric vehicle trend. Freeport-McMoRan Inc. (NYSE: FCX) is the world’s largest publicly traded copper and moly producer, as well as the eighth largest gold producer. Its key operating and development assets are in Indonesia, North America, South America and Africa.

Highly leveraged toward copper mining, the company could be a big player in a scenario of rebuilding and repairing old and battered projects, and it clearly would benefit from stronger demand and higher prices for industrial commodities.

Many across Wall Street see significant further upside potential to commodity prices over the next one to three years. In particular, this is due to accelerating demand growth, excluding China and supply constraints. They believe that this cycle is in the very early stages, as key demand drivers, such as pent-up consumer demand, accelerating global capital expenditures and massive stimulus in the United States, have yet to fully kick in.

Investors receive a 0.68% dividend. Goldman Sachs has set its price target at $48. The consensus target is $44.85, and Freeport-McMoRan stock closed most recently at $43.02.

Realty Income

This is an ideal stock for growth and income investors looking for a safer inflation-busting idea for 2022. Realty Income Corp. (NYSE: O) is an S&P 500 company dedicated to providing stockholders with dependable monthly income.

The company is structured as a real estate investment trust (REIT), and its monthly distributions 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, and it is a member of the S&P 500 Dividend Aristocrats index.

Investors receive a 4.44% distribution. The Realty Income price target at Goldman Sachs is up at $87, well above the $77.94 consensus target and a $66.63 close most recently.

The highest inflation reading in nearly 40 years is very concerning. While prices may moderate some, between increased demand and supply constraints, it is a good bet it will be much later in 2022 before we see sharp declines in prices. All these top stocks offer very good entry points at current levels.

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