4 Strong Buy Passive Income Dividend Stocks Goldman Sachs Loves in January
These four Goldman Sachs Buy-rated dividend stocks for quality names that offer outstanding total return potential and solid upside.
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Founded in 1869, Goldman Sachs is the world’s second-largest investment bank by revenue and ranks 55th on the Fortune 500 list of the largest United States 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, they produce some of Wall Street’s most coveted research and serve as a bellwether for the financial industry. With the stock market hitting record highs seemingly every day, we decided to look at Goldman Sachs Buy-rated dividend stocks, some of which are new initiations, for quality names that offer outstanding total return potential and solid upside to the Goldman Sachs price targets.
Why do we cover 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 and is likely to do so for years to come. Four dividend companies that look like strong buys now make sense for growth and income investors looking for passive income and quality holdings for total return.
Constellation Brands
Constellation Brands Inc. (NYSE: STZ | STZ Price Prediction) is the largest beer importer in the U.S. by sales and has the third-largest market share among major beer suppliers. If there is any company whose products remain in style, it’s this one, which achieves only 7% of its sales abroad and pays a solid 2.90% dividend. Constellation 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, and Nelson’s Green Brier brands.
The Goldman Sachs price target is $180.
MPLX
MPLX L.P. (NYSE: MPLX) is a diversified, large-cap master limited partnership formed by Marathon Petroleum Corp. (NYSE: MPC). This company is one of the top holdings in the Alerian MLP Energy exchange-traded fund and pays a healthy 7.39% dividend. MPLX is primarily engaged in transporting crude oil and refined products, with termini in the U.S. Midwest and Gulf Coast regions, and in natural gas gathering and processing in the Northeast, following its 2015 acquisition of MarkWest Energy.
The company’s assets include:
- Network of crude oil and refined product pipelines
- Inland marine business
- Light-product terminals
- Storage caverns
- Refinery tanks
- Docks
- Loading racks and associated piping
- Crude and light-product marine terminals
MPLX also owns:
- Crude oil and natural gas gathering systems
- Pipelines, natural gas, and NGL processing and fractionation facilities in key U.S. supply basins
Goldman Sachs has a $56 target price.
Omega Healthcare Investors
This top company is among the highest-yielding in the healthcare real estate investment trust (REIT) group, with a 5.94% dividend yield. It focuses heavily on skilled nursing facilities (over 80% of revenue) and senior housing, with a portfolio generating strong cash flows. Omega Healthcare Investors Inc. (NYSE: OHI) operates through a single segment that invests in healthcare-related real estate properties located in the United States and the United Kingdom.
The company’s core business is to provide financing and capital to the long-term healthcare industry with a particular focus on:
- Skilled nursing facilities
- Assisted living facilities
- Independent living facilities
- Rehabilitation and acute care facilities
- Medical office buildings
Its core portfolio comprises long-term leases and real estate loans with healthcare operating companies and their affiliates. In addition, Omega Healthcare makes loans to operators or their principals.
The company’s portfolio of real estate investments includes over 1,026 healthcare facilities located in 42 states and the United Kingdom, which 87 third-party operators operate.
Goldman Sachs has a $54 price target.
Ventas
This is another healthcare name that offers a 2.50% dividend, safety, and solid upside potential. Ventas Inc. (NYSE: VTR) is a REIT. The company holds a portfolio of senior housing communities, outpatient medical buildings, research centers, hospitals, and healthcare facilities located in North America and the United Kingdom.
Ventas owns approximately 1,400 properties in North America and the United Kingdom. It operates in three segments:
- Senior housing operating portfolio (SHOP)
- Outpatient medical and research portfolio (OM&R)
- Triple-Net Leased Properties (NNN)
In the Senior Housing Operating Portfolio segment, it owns and invests in senior housing communities. It engages third-party managers to operate the communities on its behalf.
The Outpatient Medical and Research Portfolio segment primarily acquires, owns, develops, leases, and manages outpatient medical buildings and research centers.
In its Triple-Net Leased Properties segment, it invests in and owns senior housing communities, skilled nursing facilities, long-term acute care facilities, and freestanding inpatient rehabilitation facilities.
The Goldman Sachs price target for the shares is $94.
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Lee Jackson has covered Wall Street analysts' equity and debt research and equity strategy daily for 24/7 Wall St. since 2012. His broad, diverse career, including a stint as creative services director at an NBC affiliate in Austin, Texas, gives him unique insight into the financial industry.
Lee Jackson's journey in the financial industry spans more than 30 years, including nearly two decades as an institutional equity salesperson at Bear Stearns, Lehman Brothers, and Morgan Stanley. His career spanned pivotal sell-side Wall Street events, from the dot-com rise and bubble to the Long-Term Capital Management debacle, 9/11, and the Great Recession of 2008. This reflects his resilience and adaptability amid market volatility.
Lee Jackson’s practical financial industry experience, gained through a career at some of the biggest banks and brokerage firms, is complemented by a lifetime of writing across various platforms. This unique combination allows him to shed light on the intricacies of Wall Street in a way only someone with deep insider experience and knowledge can. Moreover, his extensive network across Wall Street continues to provide direct access for him and 24/7 Wall St., a privilege few firms enjoy.
Since 2012, Jackson’s work for 24/7 Wall St. has been featured in Barron’s, Yahoo Finance, MarketWatch, Business Insider, TradingView, Real Money, The Street, Seeking Alpha, Benzinga, and other media outlets. He attended the prestigious Cranbrook Schools in Bloomfield Hills, Michigan, and has a degree in broadcasting from the Specs Howard School of Media Arts.
