5 Top Goldman Sachs Stock Picks Pay Big Dividends (One Yields Over 6%)
Goldman Sachs builds its Conviction List by identifying stocks where analysts hold their highest confidence in outperformance, and this month's screen turned up five dividend payers with yields that income investors rarely find attached to names this established.
Goldman Sachs is a leading investment firm on Wall Street and worldwide. Its research team continues to deliver the best ideas for institutional and high-net-worth clients across the investment spectrum, and we expect it to do so for years to come. Founded in 1869, Goldman Sachs is the world’s second-largest investment bank by revenue and is ranked 36th on the Fortune 500 list of the largest U.S. corporations by total revenue.
The Wall Street firm offers financing, advisory services, risk distribution, and hedging for its institutional and corporate clients. It also provides investment advice, portfolio management, and trade 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 top stock ideas. One of our favorite avenues is the firm’s Conviction List of top picks, which we review and often update monthly. We screened the August Conviction List for the highest-yielding stocks among its top picks. Five look like outstanding ideas not only to generate passive income but also to deliver strong total return potential.
Why Do We Cover Goldman Sachs Conviction List Dividend 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’s 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.
UPS
United Parcel Service (NYSE: UPS | UPS Price Prediction) announced last year that it would cut its shipping volume for e-commerce giant Amazon (NASDAQ: AMZN) by more than 50% by the second half of 2026, part of UPS’s broader strategy to focus on more profitable, less risky business segments. The delivery giant remains one of the best ideas among the top dividend picks, with a dividend yield now at 6.43%.
The company faced headwinds from discontinuing its Amazon business and expectations of slower economic growth. While UPS has never trimmed its dividend since listing in 1999, that track record offers reassurance rather than a guarantee; growth may pause, but a cut remains off the table for now.
UPS provides integrated logistics solutions to customers in more than 200 countries and territories. Its segments include:
- U.S. Domestic Package
- International Package
The U.S. Domestic Package segment offers a range of domestic air and ground package transportation services within the United States. Its air portfolio offers time-definite, same-day, next-day, two-day, and three-day delivery alternatives as well as air cargo services. UPS’s ground network enables customers to ship using its day-definite ground service. UPS SurePost provides residential ground service for customers with non-urgent, lightweight residential shipments.
The International Package segment comprises its small package operations in Europe, the Indian subcontinent, the Middle East and Africa, Canada, Latin America, and Asia. It offers a selection of guaranteed day- and time-definite international shipping services. Its supply chain solutions include forwarding, logistics, and other services.
Goldman Sachs has a $132 target price, a 29% gain from current levels.
Citizens Financial
Citizens Financial Group (NYSE: CFG) is one of the nation’s oldest and largest financial institutions. Founded in 1828 and offering a dependable 2.56% dividend, this bank is a top choice for investors. It operates as a bank holding company, providing 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 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 $84, a 14.3% gain from current levels.
ConocoPhillips
The big always gets bigger, and this company completed a $22.5 billion purchase of Marathon Oil in November 2024. This deal added high-quality assets, particularly in the Eagle Ford and Bakken shales, to the company’s portfolio. ConocoPhillips (NYSE: COP) is an exploration and production company with a solid dividend yield of 2.55%.
Its Alaska segment primarily explores for, produces, transports, and markets crude oil, natural gas, and natural gas liquids. The Lower 48 segment comprises operations in the 48 contiguous states of the United States and the Gulf of Mexico. Canadian operations consist of the Surmont oil sands development in Alberta, the liquids-rich Montney unconventional play in British Columbia, and commercial operations.
The Europe, Middle East, and North Africa segment consists of operations principally located in:
- The Norwegian sector of the North Sea
- The Norwegian Sea
- Qatar
- Libya
- Equatorial Guinea
- United Kingdom
The Asia Pacific segment has exploration and production operations in China, Malaysia, and Australia, as well as commercial operations in China, Singapore, and Japan. The Other International segment includes interests in Colombia as well as contingencies associated with prior operations in other countries.
Jefferies has a $146 target price, a 13% gain.
TPG
This asset management company has been hit hard by industry concerns, yet it pays a strong 4.15% dividend yield and has rallied sharply off the 52-week lows. TPG (NASDAQ: TPG) is an alternative asset management company that invests across a diversified set of strategies, including private equity, impact, credit, real estate, and market solutions.
It consists of six multi-strategy investment platforms:
- Capital
- Growth
- Impact
- Credit
- Real Estate
- Market Solutions
The Capital platform focuses on control-oriented private equity investments, and its Capital platform products include:
- TPG Capital
- TPG Healthcare Partners
- TPG Asia
Its Growth platform products include:
- TPG Growth
- TPG Tech Adjacencies
- TPG Life Sciences Innovation
- TPG Emerging Companies Asia
- TPG Sports
The Impact platform products include:
- The Rise Funds
- TPG Rise Climate
- TPG Rise Climate Transition Infrastructure
- TPG Rise Climate Global South Initiative
- TPG NEXT
Its Credit platform products include:
- TPG Credit Solutions
- TPG Direct Lending
- TPG Asset-Based Finance
- TPG CLOs
- TPG Multi-Asset Credit
Goldman Sachs has a price target of $68, with 30.7% upside potential.
Tyson Foods
With well-known products and a solid business model, this is a great idea now, paying a solid 3.70% dividend. Tyson Foods (NYSE: TSN) is a food company with a portfolio of products and brands, including Tyson, Jimmy Dean, Hillshire Farm, Ball Park, Wright, State Fair, Aidells, and ibp.
Its Beef segment includes operations to process live-fed cattle and fabricate dressed beef carcasses into primal and sub-primal meat cuts and case-ready products. The Pork segment includes operations related to processing live market hogs and fabricating pork carcasses into primal and sub-primal cuts and case-ready products. The Chicken segment includes domestic operations to raise and process live chickens, purchase raw materials for fresh, frozen, and value-added chicken products, and sell specialty products.
The Prepared Foods segment includes operations to manufacture and market frozen and refrigerated food products, as well as logistics to move products through the supply chain.
The Goldman Sachs target price is $72, representing a strong 33% gain.
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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 and diverse career, which included a stint as the creative services director at the NBC affiliate in Austin, Texas, gives him unique insight into the financial industry and world.
Lee Jackson's journey in the financial industry spans over 30 years, with nearly two decades as an institutional equity salesperson at Bear Stearns, Lehman Brothers, and Morgan Stanley. His career was marked by his presence on the sell side during pivotal 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 is a testament to his resilience and adaptability in the face of market volatility.
Lee Jackson’s practical financial industry experience, acquired from a career at some of the biggest banks and brokerage firms, is complemented by a lifetime of writing on various platforms. This unique combination allows him to shed light on the intricacies and workings of Wall Street in a way that 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.
