Investing

Goldman Sachs Is Raising Price Targets on 4 Dividend Superstars for 2025

Lee Jackson

Published: December 10, 2024 9:43 am

Key Points

• All across Wall Street, analysts are making some end-of-the-year adjustments.
• After a blowout 2024, investors should be cautious for 2025.
• Growth and Income dividend stocks could rule next year.
• Have you adjusted your portfolio for 2025 yet? Now may be the perfect time to team up with an experienced financial advisor and get set for the coming year. Click here to get started finding one today. (sponsored)

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, while most of the S&P 500 is doing well, it will not likely catch up to the hype-driven AI stocks soon.

One thing remains certain. With storm clouds possibly gathering on the economic horizon, the ongoing risk of an escalating conflict in the Middle East, and the market once again very overbought, many Wall Street strategists are cautious. They predict modest single-digit gains for 2025. However, a significant 20% or more sell-off could also be possible—something we tasted in July when the Nasdaq briefly slid into 10% correction territory.

The analysts at Goldman Sachs and all across Wall Street are doing some final work on stocks they cover as the year winds down. After another stellar year for equities, and with many across the country optimistic about the changes from a new administration, we have started to screen what investors are in store for in 2025.

A recent Goldman Sachs research note included price target hikes on four top dividend superstars. Three of these are top financial services ideas that investors can buy for 2025 and hold forever. All have Buy ratings, making sense for growth and income investors looking for positive total return ideas.

 Why we recommend Goldman Sachs stocks

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.

AT&T

The legacy telecommunications company has been undergoing a lengthy restructuring while lowering its dividend, which still stands at 4.65%. AT&T Inc. (NYSE: T) provides worldwide telecommunications, media, and technology services. Its Communications segment offers wireless voice and data communications services.

AT&T sells through its company-owned stores, agents, and third-party retail stores:

• Handsets
• Wireless data cards
• Wireless computing devices
• Carrying cases
• Hands-free devices

AT&T also provides:

• Data
• Voice
• Security
• Cloud solutions
• Outsourcing
• Managed and professional services

This segment provides customer premises equipment for multinational corporations, small and mid-sized businesses, and governmental and wholesale customers. In addition, it offers residential customers broadband fiber and legacy telephony voice communication services.

It markets its communications services and products under:

• AT&T
• Cricket
• AT&T PREPAID
• AT&T Fiber

The company’s Latin America segment provides wireless services in Mexico and video services in Latin America. This segment markets its services and products under the AT&T and Unefon brands.

Goldman Sachs raised its $25 price target on the stock to $28.

Citigroup

This is a top money center bank, and Warren Buffett bought a massive $2.5 billion worth of stock in the summer of 2022. The stock pays a dependable 3.02% 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 9.2 times estimated 2025 earnings; this company looks very sensible in a volatile stock market and in a sector that has lagged some in 2024 but looks to be gaining ground.

The Goldman Sachs price objective is lifted to $81 from $72.

Citizens Financial Group

Founded in 1828 and offering a dependable 3.60% dividend, Citizens Financial Group Inc. (NYSE: CFG) is a top bank for investors to consider. It operates as a bank holding company that provides retail and commercial banking products and services to individuals, small businesses, middle-market companies, corporations, and institutions in the United States.

The company operates in two segments:

• Consumer Banking
• Commercial Banking

The Consumer Banking segment offers:

• Deposit products
• Mortgage and home equity lending products
• Credit cards
• Business loans
• Wealth management and investment services
• Auto, education, and point-of-sale finance loans
• Digital deposit products

This segment serves its customers through telephone service centers as well as through its online and mobile platforms.

The Commercial Banking segment provides various financial products and solutions, including

• Lending and leasing
• Deposit and treasury management services
• Foreign exchange, interest rate, and commodity risk management solutions
• Syndicated loans, corporate finance
• Mergers and acquisitions
• Debt and equity capital markets services

This segment serves corporate banking, healthcare, technology, asset finance, franchise finance, leasing, asset-based lending, commercial real estate, mid-corporate, and private equity sponsor industries.

The Goldman Sachs price target is lifted from $48 to $59.

Comerica

Based in Dallas, this fast-growing banking center giant pays a hefty 4.09% dividend. Comerica Inc. (NYSE: CMA) provides various financial products and services.

The company operates through:

• Commercial banking
• Retail banking
• Wealth management
• Finance segments

The Commercial Bank segment offers:

• Commercial loans and lines of credit
• Deposits
• Cash management
• Capital market products
• International trade finance
• Letters of credit
• Foreign exchange management services
• Loan syndication services
• Payment and card services for small and middle-market businesses, multinational corporations, and governmental entities

The Retail Bank segment provides:

• Personal financial services, such as consumer lending
• Consumer deposit gathering
• Mortgage loan origination and various
• Consumer products that include deposit accounts, installment loans, credit cards, student loans, home equity lines of credit
• Residential mortgage loans and commercial products and services to micro-businesses.

The Wealth Management segment offers products and services comprising:

• Fiduciary
• Private banking
• Retirement
• Investment management and advisory
• Investment banking and brokerage services
• Annuity products and life, disability, and long-term care insurance products

The Finance segment engages in the securities portfolio and asset and liability management activities.

Comerica operates in:

• Texas
• California
• Michigan
• Arizona
• Florida
• Canada
• Mexico

Goldman Sachs lifts the $71 price objective to $85.

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