Goldman Sachs is a leading investment firm on Wall Street and worldwide. The firm’s top-tier 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. Founded in 1869, it is the world’s second-largest investment bank by revenue and, according to published reports, ranked 32nd 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. At 24/7 Wall St., we have followed the company’s research for 15 years to bring our readers top stock ideas.
One of our favorite avenues is the firm’s Conviction List of top picks, which is reviewed and updated monthly. With the firm raising its year-end target for the S&P 500 to 8000, we decided to screen the Conviction List for the highest-yielding passive-income ideas. With the stock market hitting all-time highs seemingly every week, it may be time to shift to safer dividend-paying stocks. The Goldman Sachs Conviction List is a curated list of stocks that the firm’s research team believes are highly likely to outperform 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 identify stocks where Goldman Sachs analysts have the “highest level of conviction” in their outperformance.
The Goldman Sachs team said this when explaining the S&P 500’s increase to 8000 by year-end.
Continued earnings growth should drive further upside in the equity market. We expect the S&P 500 to rise by 6% to our revised year-end target of 8000. Our previous target was 7600. The increased return forecast reflects higher earnings estimates for the S&P 500 following an exceptionally strong Q1 reporting season. We raise our S&P 500 EPS forecasts to $340 (+24% year/year) in 2026 and $385 (+13%) in 2027. The beneficiaries of AI infrastructure investment will account for roughly half of S&P 500 EPS growth this year.
Here are the five highest-yielding Conviction List stocks.
Ares Management
A leader in alternative investments, this company pays a solid 3.67% dividend. Ares Management (NYSE: ARES | ARES Price Prediction) is an alternative investment manager offering clients complementary primary and secondary investment solutions across various asset classes.
Its segments include:
- Credit Group, which manages credit strategies across the liquid and illiquid spectrum, including liquid credit, alternative credit, direct lending, and APAC credit.
- Private Equity Group categorizes its investment strategies as corporate private equity, special opportunities, and APAC private equity.
- Real Assets Group manages comprehensive equity and debt strategies across real estate and infrastructure investments.
- Secondaries Group invests in secondary markets across alternative asset classes, including private equity, real estate, infrastructure, and credit.
The company has operations across:
- North America
- South America
- Europe
- Asia Pacific
- The Middle East
Goldman Sachs has a $138 target price, representing a 10% gain.
Brixmor Property
This quality real estate investment trust (REIT) offers steady, reliable income, a portfolio of outstanding properties, and a rich 3.95% dividend. Brixmor Property (NYSE: BRX) is an internally managed REIT that conducts its operations primarily through Brixmor Operating Partnership and subsidiaries.
The company owns and operates open-air retail portfolios in the United States, measured by gross leasable area (GLA), consisting primarily of community and neighborhood shopping centers. The company’s portfolio consists of approximately 360 retail centers totaling over 64 million square feet of GLA.
Brixmor Property projects include:
- Dickson City Crossings
- East Port Plaza
- Fox Run
- Gateway Plaza
- Old Bridge Gateway
- Pointe Orlando
- Shops at Palm Lakes
- Stewart Plaza
- Tinley Park Plaza
- Tyrone Gardens
- Vail Ranch Center
- Venice Village
- Village at Mira Mesa
- Westminster City Center
The company’s national portfolio is primarily located within established trade areas in the top 50 Core-Based Statistical Areas (CBSAs) in the United States.
Goldman Sachs has a $35 target price for the stock, representing 12% upside.
Citizens Financial
This is one of the nation’s oldest and largest financial institutions. Founded in 1828 and offering a dependable 2.82% dividend, this bank is a top choice for investors. Citizens Financial (NYSE: CFG) 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. 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 and 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 $77, representing a 21% gain from current levels.
Duke Energy
Duke Energy (NYSE: DUK) is an American electric power and natural gas holding company headquartered in Charlotte, North Carolina. It is located in a growing part of the country and pays a 3.50% dividend. Duke Energy and its subsidiaries operate as energy companies in the United States.
It operates through two segments. The Electric Utilities and Infrastructure 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 Gas Utilities and Infrastructure 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 $145 Goldman Sachs price target represents a 16% gain.
Kontoor Brands
While somewhat off the radar, this company has tremendous upside, well-known brands, and pays a reasonable 3.08% dividend. Kontoor Brands (NYSE: KTB) is a global lifestyle apparel company. The company designs, manufactures, procures, sells, and licenses apparel, footwear, and accessories.
The lifestyle, outdoor, and workwear brands include Wrangler, Lee, and Helly Hansen.
The Wrangler brand offers multiple sub-brands, collections, and product lines within the Wrangler brand to target specific consumer demographics and end-users, including:
- 20X
- Aura from the Women at Wrangler
- Cowboy Cut
- Premium Patch
- Riggs Workwear
- Rock 47
- Rustler
- Wrangler Retro
- Wrangler Rugged Wear
- Wrangler All Terrain Gear
The Lee segment offers denim, apparel, footwear, and accessories for adults and children. The Lee brand offers multiple sub-brands, collections, and product lines, including:
- Lee101
- Riders
- Storm Rider
- Lee MVP
- Lee X
The Helly Hansen brand is an outdoor and workwear brand. Helly Hansen offers sub-brands, including Helly Hansen Sport and Helly Hansen Workwear.
The Goldman Sachs price target of $95 would be a massive 33% gain for shareholders.
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