Dividend Lovers Bet Big on 6 ‘Strong Buy’ Goldman Sachs Conviction List Picks for Rest of 2023

The artificial intelligence rally this year, led by the so-called Magnificent 7, has been awesome if you owned those stocks. However, most of the S&P 500 has been treading water, and they are unlikely to catch up to the hype-driven AI stocks any time soon. One thing is for sure. With the looming storm clouds on the horizon and the potential for as many as two more interest rate increases, many Wall Street strategists feel we will be fortunate to have high single-digit gains for the balance of 2023, and we could very well have a 20% or bigger sell-off added to the mix at some juncture.

We screened the Goldman Sachs Conviction List of top stock picks looking for dividend-paying blue chips that worried investors can look at now. Six top companies hit our screens, all of which are of course rated Buy. It is important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.

Chevron

This integrated giant is a safer way for investors looking to get positioned in the energy sector, and shares have backed up some. Chevron Corp. (NYSE: CVX) engages in integrated energy and chemicals operations worldwide. The company sports a sizable dividend and has a solid place in natural gas and liquefied natural gas (LNG).

The Upstream segment participates in the exploration, development, production and transportation of crude oil and natural gas; processing, liquefaction, transportation and regasification associated with LNG; transportation of crude oil through pipelines; and transportation, storage and marketing of natural gas, as well as operates a gas-to-liquids plant.

The Downstream segment engages in refining crude oil into petroleum products; marketing crude oil, refined products and lubricants; manufacturing and marketing of renewable fuels; transporting crude oil and refined products by pipeline, marine vessel, motor equipment and rail car; and manufacturing and marketing of commodity petrochemicals, plastics for industrial uses and fuel and lubricant additives. It is also involved in the cash management and debt financing activities; insurance operations; real estate activities; and technology businesses.

Chevron posted strong second-quarter results and remains one of the best ways to play energy safely.

The company offers a 3.78% dividend. Goldman Sachs has a $187 target price on Chevron stock. The consensus target is $185.36, and shares closed on Friday at $160.90.

ALSO READ: 5 Red-Hot Well-Known Stocks Trading Under $10 That Fast Money Traders Absolutely Love

JPMorgan Chase

This stock trades at a still reasonable 10.7 times estimated 2023 earnings. JPMorgan Chase & Co. (NYSE: JPM) is a leading global financial services firm and one of the largest banking institutions in the United States, with about $2.6 trillion in assets.

Sponsored: Find a Qualified Financial Advisor

Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to 3 fiduciary financial advisors in your area in 5 minutes. Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests. If you’re ready to be matched with local advisors that can help you achieve your financial goals, get started now.

Source: Read Full Article