7 Goldman Sachs Conviction List Stocks for Q2 Are Safe and Pay Big Dividends

After it posted stellar results for the latest quarter, Goldman Sachs had this to say:

Phillips 66 remains our top idea within our Refining coverage, where we continue to see headroom for incremental capital returns this year, are constructive on a positive rate of change at Refining in 2022, and continue to see attractive non-refining value in Midstream, Marketing, and Chemicals.

The dividend yield is 4.30%. The Phillips 66 stock target price at Goldman Sachs price target is $99. The consensus target was last seen at $99.77, and shares closed on Wednesday at $85.68.

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 52-year operating history and increased the dividend 109 times since its public listing in 1994, and it is a member of the S&P 500 Dividend Aristocrats index.

Investors receive a 4.13% distribution monthly. Goldman Sachs analysts have an $86 price target. The $77.25 consensus target for Realty Income stock is closer to the $71.78 a share close on Wednesday.

The rally off the lows has been very nice, but the market is running out of gas and will be running into some very strong headwinds. Not the least of which will be continued high energy prices when the summer driving season rolls around in a couple of months. Toss in some aggressive interest rate hikes in May and June, and we could be in for some strong turbulence going forward. All these companies can weather those potential storms better than most.

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