Investing
Goldman Sachs Sees S&P 500 at 6000 and Has 4 Buy-Rated Stocks With Yields as High as 8.25%
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24/7 Wall St. Insights
The artificial intelligence rally over the past two years, led by the so-called Magnificent 7, has been remarkable if you owned those stocks. However, many companies in the S&P 500 are 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 economic horizon, the risk of an escalating conflict in the Middle East, and the market once again very overbought, 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—something we tasted in July when the Nasdaq quickly slid into 10% correction territory.
Despite all the potential negatives investors face, Goldman Sachs recently raised its target price for the venerable S&P 500 to 6,000 by the end of 2024 and 6,300 over the next 12 months. In addition to increasing the targets, the Goldman team is positive on earnings per share growth in 2025 and raised their estimate to $268 from $256.
Given Wall Street’s preeminent investment bank’s bullish stance, we decided to screen their list of buy-rated dividend stocks. We found four stocks that pay big and dependable passive income dividends. All make sense for growth and income investors looking to capture total return gains for the rest of the year and 2025.
Goldman Sachs is the acknowledged leader in the investment landscape on Wall Street and worldwide. The firm’s top-notch research department continues to provide clients with the best ideas across the investing spectrum and is likely to continue for years.
This top money manager and financial giant pays shareholders a rich 8.25% dividend. AllianceBernstein Holding L.P. (NYSE: AB) is a publicly owned investment manager.
The firm manages separate client-focused portfolios for its clients and primarily invests in:
Alliance Bernstein employs and advises on:
The firm obtains external research to complement its in-house research.
This tobacco company offers value investors a great entry point and a rich 8.14% dividend. Altria Group Inc. (NYSE: MO) manufactures and sells smokable and oral tobacco products in the United States through its subsidiaries.
The company provides cigarettes primarily under the Marlboro brand, as well as:
It sells its tobacco products primarily to wholesalers, including distributors and large retail organizations, such as chain stores.
Altria used to own over 10% of Anheuser-Busch InBev S.A. (NYSE: BUD), the world’s largest brewer. The company sold 35 million of its 197 million shares through a global secondary offering. That represents 18% of their holdings but still leaves a hefty 8% of the outstanding shares in their back pocket. They also announced a $2.4 billion stock repurchase plan partially funded by the sale.
This company is one of the top holdings in the Alerian MLP energy exchange-traded fund and pays a healthy 7.61% dividend. MPLX L.P. (NYSE: MPLX) is primarily engaged in transporting crude oil and refined products and terminating in the US Midwest and Gulf Coast regions and natural gas gathering and processing in the northeast from its prior acquisition of MarkWest Energy in 2015. Independent U.S. refiner Marathon Petroleum Corp. (NYSE: MPC) formed MPLX.
The company’s assets include:
MPLX also owns:
The potential for new home sales to increase is a big positive for this company, which pays a dependable 7.33% dividend. Whirlpool Corp. (NYSE: WHR) manufactures and markets home appliances and related products.
It operates through four segments:
The company’s principal products include:
Whirlpool markets and distributes its products primarily under the:
Two Dividend Aristocrats Yielding Over 5% Are Our Top October Buys
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