This post includes affiliate links. If you purchase anything through these affiliated links, 247wallst.com may earn a commission.
24/7 Wall St. Insights
The artificial intelligence rally over the last year and a half, led by the so-called Magnificent 7 , has been remarkable if you owned those stocks. However, most of the S&P 500 is treading water and likely will not catch up to the hype-driven AI stocks soon.
One thing remains certain: with storm clouds gathering on the economic horizon, the risk of an escalating conflict in the Middle East, and the market once again very overbought many Wall Street strategists are cautious, predicting modest single-digit gains for the remainder of 2024. However, a significant 20% or more sell-off could also be possible. Something we got a taste of in July when the Nasdaq quickly slid into 10% correction territory.
We decided to screen the August Goldman Sachs U.S. Conviction List for stocks with solid total return potential that pay dependable dividends for those seeking passive income. Five top companies caught our eye, and when they are among the top stock picks at the world's most prestigious investment bank, they likely will also catch the eye of savvy investors. Also, grab this incredible free report today.
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 to for years.
Brixmor Property Group
Brixmor Property Group is a publicly traded real estate investment trust that invests in shopping centers.
This industry-leading real estate investment trust (REIT) looks ready to break out to a 52-week high and pays a solid 4.17% dividend. Brixmor Property Group Inc. ( NYSE: BRX ) is an REI that owns and operates a high-quality national portfolio of open-air shopping centers.
The company's 359 retail centers comprise approximately 64 million square feet of prime retail space in established trade areas. The company strives to own and operate shopping centers that reflect Brixmor's vision to be at the center of the communities they serve and are home to a diverse mix of thriving national, regional, and local retailers.
Brixmor is a real estate partner to over 5,000 retailers, including The TJX Companies, Kroger, Publix Super Markets, and Ross Stores. Goldman Sachs has a $29 target price objective on Brixmor.
Citigroup
Citigroup is an American multinational investment bank and financial services company based in New York City.
This is a top money center bank that Warren Buffett bought a massive $2.5 billion worth of stock in the summer of 2022. The stock pays a dependable 3.47% 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 reasonable in what remains a volatile stock market and in a sector that has lagged some in 2024 but looks to be gaining ground. Goldman Sachs has a $75 target price for the shares.
Kinder Morgan
Kinder Morgan is one of North America's largest energy infrastructure companies.
This is one of the top energy stocks and remains a favorite across Wall Street and pays a dependable 5.38% dividend. Kinder Morgan Inc. ( NYSE: KMI ) is an energy infrastructure company in North America.
The company operates through four segments:
- Natural Gas
- Products
- Terminals
- CO2
The Natural Gas Pipelines segment:
- Owns and operates the interstate and intrastate natural gas pipeline and underground storage systems
- Natural gas gathering systems and natural gas processing and treating facilities
- Natural gas liquids fractionation facilities and transportation systems
- Liquefied natural gas liquefaction and storage facilities
The Products Pipelines segment owns and operates refined petroleum products, crude oil and condensate pipelines, associated product terminals, and petroleum OKEpipeline transmit facilities.
The Terminals segment owns and operates liquids and bulk terminals that store and handle various commodities, including:
- Gasoline
- Diesel fuel
- Chemicals
- Ethanol
- Metals
- Petroleum coke
- Owns tankers
Lastly, the CO2 segment produces, transports, and markets CO2 to recover and produce crude oil from mature oil fields. It owns interests in/or operates oil fields, gasoline processing plants, and a natural oil pipeline system in West Texas. It holds and runs approximately 83,000 miles of pipelines and 144 terminals.
Philip Morris International
Philip Morris International is an American multinational tobacco company with products sold in over 180 countries.
This company has continued to grow its global market share and pays a big 4.40% dividend. Philip Morris International Inc. ( NYSE: PM ) is one of the largest international cigarette producers, with a share of 28% of the global cigarette/heated tobacco market.
Key combustible brands include:
The company is commercializing IQOS, a heat-not-burn product, in over 40 markets, which could drive earnings in the future. Most on Wall Street believe Philip Morris International offers superior underlying growth prospects, both near-term and long-term.
The share price has been substantial lately as investors have embraced the growth potential of its reduced-risk products. All sales are outside the United States. The Goldman Sachs price target is set at $126.
TPG
TPG manages investment funds in growth capital, venture capital, public equity, and debt investments.
While well off the proverbial radar, this stock pays a 3.43% dividend and also looks ready to challenge a 52-week high. TPG Inc. ( NASDAQ: TPG ) operates as an alternative asset manager in the United States and internationally.
The company offers investment management services to TPG Funds, limited partners, and other vehicles.
It also offers monitoring services to portfolio companies, advisory, debt and equity arrangement, underwriting and placement services, and capital structuring and other advisory services.
In addition , TPG invests in:
- Private equity funds
- Real estate funds
- Hedge funds
- Credit funds
These Six Ultra-High-Yield Stocks Are in Our Passive Income Hall of Fame
“The Next NVIDIA” Could Change Your Life
If you missed out on NVIDIA’s historic run, your chance to see life-changing profits from AI isn’t over.
The 24/7 Wall Street Analyst who first called NVIDIA’s AI-fueled rise in 2009 just published a brand-new research report named “The Next NVIDIA.”
Click here to download your FREE copy.
Most Popular
Comments / 0