Goldman Sachs Has 6 Dividend Blue Chips on Its Conviction List of Top Stocks

Investing

Published: April 23, 2024 8:00 am

The artificial intelligence rally over the last year and a half, led by the so-called Magnificent 7, has been remarkable if you owned those stocks. However, most of the S&P 500 is treading water and will not likely catch up to the hype-driven AI stocks soon.

One thing remains certain: with storm clouds gathering on the horizon and the risk of an escalating conflict in the Middle East, many Wall Street strategists are cautious, predicting modest single-digit gains for the remainder of 2024. However, a significant 20% or more sell-off could also be possible.

We decided to screen the April Goldman Sachs U.S. Conviction List for stocks with solid total return potential that pay dependable dividends for those seeking passive income. Six top companies caught our eye, and when they are among the top stock picks at the world’s most prestigious investment bank, they likely will also catch the eye of savvy investors.

Amgen

This biotech giant remains a top stock for investors to buy and a safer way to play the massive potential growth in biosimilars while paying a solid 3.37% dividend. Amgen Inc. (NASDAQ: AMGN) discovers, develops, manufactures, and delivers human therapeutics worldwide.

Amgen focuses on:

Inflammation
Oncology/hematology
Bone health
Cardiovascular disease
Nephrology
Neuroscience

The company’s products include:

Enbrel to treat plaque psoriasis, rheumatoid arthritis, and psoriatic arthritis
Neulasta reduces the chance of infection due to a low white blood cell count in patients with cancer
Prolia to treat postmenopausal women with osteoporosis
Xgeva for skeletal-related events prevention
Otezla for the treatment of adult patients with plaque psoriasis, psoriatic arthritis, and oral ulcers associated with Behcet’s disease
Aranesp to treat a lower-than-normal number of red blood cells and anemia
KYPROLIS to treat patients with relapsed or refractory multiple myeloma
Repatha reduces the risks of myocardial infarction, stroke, and coronary revascularization

Citigroup

This is a top bank that Warren Buffett bought a massive $2.5 billion worth of stock in the summer of 2022. The stock pays a dependable 3.55% dividend. Citigroup Inc. (NYSE: C) is a leading global diversified financial service company that provides consumers, corporations, and governments with a broad range of financial products and services.

Citigroup offers:

Consumer banking and credit
Corporate and investment banking
Securities brokerage
Transaction services
Wealth management services.

Citi operates and does business in more than 160 countries/ jurisdictions in North America, Latin America, Asia, Europe/Middle East and Africa (EMEA).

Trading at a reasonable 10.3 times estimated 2024 earnings, this company looks very reasonable in what remains a volatile stock market and in a sector that has dramatically lagged but looks to be gaining ground.

Constellation Brands

Constellation is the largest beer import company in the US, measured by sales, and has the third-largest market share of all major beer suppliers.

If there is any company whose products stay in style, it’s this one, which pays a 1.36% dividend. Constellation Brands Inc. (NYSE: STZ), together with its subsidiaries, produces, imports, markets, and sells beer, wine, and spirits in the United States, Canada, Mexico, New Zealand, and Italy.

The company provides beer primarily under these popular brands:

Corona Extra
Corona Premier
Corona Familiar
Corona Light
Corona Refresca
Corona Hard Seltzer
Modelo Especial
Modelo Negra
Modelo Chelada
Victoria
Vicky Chamoy
Pacifico

It also offers wine under:

Cook’s California Champagne
Kim Crawford
Meiomi
Mount Veeder
Ruffino
SIMI
My Favorite Neighbor
Robert Mondavi Winery
Schrader
The Prisoner Wine Company

Spirits are sold under the Casa Noble, Copper & Kings, High West, Mi CAMPO, Nelson’s Green Brier, and SVEDKA brands.

Schlumberger

This top oil services company is expected to benefit from increased global exploration and production spending and pays a 2.12% dividend. Schlumberger Limited (NYSE: SLB) is the world’s largest provider of services and equipment used in the drilling, evaluation, completion, production, and maintenance of oil and natural gas wells.

The company operates through four divisions:

Digital & Integration
Reservoir Performance
Well Construction
Production Systems

The company provides field development and hydrocarbon production, carbon management, and integration of adjacent energy systems; reservoir interpretation and data processing services for exploration data; and well construction and production improvement services and products.

With a strong commitment to innovation, the company also provides information on subsurface geology and fluids evaluation, open and cased hole services, exploration and production pressure and flow-rate measurement services, and pressure pumping, well stimulation, and coiled tubing equipment solutions.

In addition, the company offers:

Mud logging
Directional drilling
Measurement-while-drilling
Logging-while-drilling services
Engineering support services
Supplies drilling fluid systems
Designs, manufactures, and markets roller cone and fixed cutter drill bits
Bottom-hole-assembly and borehole enlargement technologies
Well cementing products and services
Well planning, drilling and engineering
Supervision, logistics, procurement, and contracting of third parties
Drilling rig management solutions
Drilling equipment and services
Land drilling rigs and related services

Further, it provides artificial lift production equipment and optimization services;

Supplies packers, safety valves, sand control technology
Various intelligent, well completions technology and equipment
Designs and manufactures valves, chokes, actuators, and surface trees

Schlumberger also offers OneSubsea, an integrated solutions, products, systems, and services, including wellheads, subsea trees, manifolds and flowline connectors, control systems, connectors, and services.

Simon Property Group

This leading company has rallied well off the 2023 lows, and is offering patient investors a hefty 5.39% dividend. Simon Property Group Inc. (NYSE: SPG) invests in the global real estate markets.

The company invests, owns, manages, and develops properties.

Simon Property Group primarily invests in:

Regional malls
Premium outlets
Mills
Community/lifestyle centers

Through its subsidiary partnership, it owns or has an interest in about 230 properties in the US and Asia.

The company also has a 28.9% interest in Klepierre, a European REIT with over 260 shopping centers in 13 countries.

Southern Company

This large-cap utility leader pays a solid 4.07% dividend. Southern Company (NYSE: SO), through its subsidiaries, engages in the generation, transmission, and distribution of electricity.

It operates through three segments:

Gas Distribution Operations
Gas Pipeline Investment
Gas Marketing Services

The company also develops, constructs, acquires, owns, and manages power generation assets, including renewable energy projects, and sells electricity in the wholesale market; and distributes natural gas in Illinois, Georgia, Virginia, and Tennessee, as well as provides gas marketing services, gas distribution operations, and gas pipeline investments operations.

Southern Company serves approximately 8.8 million electric and gas utility customers. Further, the company offers digital wireless communications and fiber optics services.

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