Founded in 1869, Goldman Sachs is the world’s second-largest investment bank by revenue and is ranked 35th on the Fortune 500 list of the largest U.S. corporations by total revenue. The Wall Street white-glove giant offers financing, advisory services, risk distribution, and hedging for the firm’s institutional and corporate clients. In addition, it provides advice, investing, and execution for institutions and individuals across public and private markets. At 24/7 Wall St., we have followed the company’s research for 15 years to bring our readers their top stock ideas.
The Goldman Sachs Conviction List is a curated list of stocks that the firm’s research team believes have a high likelihood of outperforming the market. It is a tool for investors to identify stocks with strong growth potential and is frequently updated to reflect changes in market conditions and company performance. The list aims to pinpoint stocks where Goldman Sachs analysts have the “highest level of conviction” for outperformance. Given the recent market volatility, we screened the August Conviction list of the top strong Buy stocks the firm recommends, and found four very safe dividend ideas for what could be a volatile month.
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 institutional and high-net-worth clients with the best ideas across the investment spectrum. It is likely to continue doing so for years.
AT&T
AT&T Inc. (NYSE: T | T Price Prediction) is the world’s fourth-largest telecommunications company in terms of revenue. The company has lowered its once huge debt level and is a solid buy now. AT&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 provided professional services
- Customer premises equipment for multinational corporations, small and mid-sized businesses, and governmental and wholesale customers
In addition, this segment 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.
The Goldman Sachs price target for the stock is $32.
Duke Energy
Duke Energy Corp. (NYSE: DUK) is an American electric power and natural gas holding company headquartered in Charlotte, North Carolina. This is another excellent idea now in a very frothy market. It is located in a growing part of the country and pays a hefty dividend. Duke Energy and its subsidiaries operate as energy companies in the United States.
It operates through two segments:
- Electric Utilities and Infrastructure (EU&I)
- Gas Utilities and Infrastructure (GU&I)
The EU&I segment generates, transmits, distributes, and sells electricity in the Carolinas, Florida, and the Midwest.
To develop electricity, Duke Energy uses the following:
- Coal
- Hydroelectric
- Natural gas
- Oil
- Solar and wind sources
- Renewables
- Nuclear fuel
This segment also sells electricity to municipalities, electric cooperative utilities, and load-serving entities.
The GU&I segment distributes natural gas to
- Residential
- Commercial
- Industrial
- Power generation natural gas customers
The segment also invests in pipeline transmission projects, renewable natural gas projects, and natural gas storage facilities.
The Goldman Sachs target price is set at $133.
Johnson & Johnson
Johnson & Johnson (NYSE: JNJ) is an American multinational corporation specializing in pharmaceuticals, biotechnology, and medical devices. Johnson & Johnson is among the most conservative of the major pharmaceutical companies with a diverse product portfolio and a familiar, solid brand. The company researches, develops, manufactures, and sells a range of healthcare products. Its primary focus is products related to human health and well-being.
It operates through two segments. The Innovative Medicine segment is focused on various therapeutic areas, including:
- Immunology
- Infectious diseases
- Neuroscience
- Oncology
- Pulmonary hypertension
- Cardiovascular and metabolic diseases
Products in this segment are distributed directly to retailers, wholesalers, distributors, hospitals, and healthcare professionals for prescription use.
The MedTech segment encompasses a diverse portfolio of products utilized in orthopedics, surgery, interventional solutions, cardiovascular intervention, and vision. It also offers a commercially available intravascular lithotripsy (IVL) platform for the treatment of coronary artery disease (CAD) and peripheral artery disease (PAD).
Goldman Sachs has a $185 price objective.
Viper Energy
Viper Energy Inc. (NASDAQ: VNOM) owns and acquires mineral and royalty interests in oil and natural gas properties in the Permian Basin. With a strong dividend and a value entry point for the shares, this mid-cap energy play has tremendous upside to the Goldman Sachs target price. Viper Energy is an independent oil and natural gas company focused on the acquisition, development, exploration, and exploitation of unconventional, onshore oil and natural gas reserves, primarily in the Permian Basin in West Texas.
The company’s assets consist of mineral and royalty interests in oil and natural gas properties, substantially all of which are leased to working interest owners who bear the costs of operation and development. Its assets consist of mineral interests and royalty interests underlying 987,861 gross acres and 35,671 net royalty acres primarily in the Permian Basin.
Viper’s mineral and royalty interests located in Howard County, Texas, include approximately 1,691 net royalty acres in the Permian Basin and have an average net royalty interest of roughly 8.6%.
A Goldman Sachs price target of $56 represents a stunning 49% gain from current levels.
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