7 Goldman Sachs Conviction List Dividend Stocks That Can Withstand a Huge Selloff – 24/7 Wall St.
When every rally attempt fails, aside from Thursday’s big risk day, market veterans know that the path of least resistance for the stock market is likely to be lower. Thursday’s preliminary reading of negative gross domestic product for the first quarter (the first such print since the second quarter of 2020) is a clear sign that things could get worse before they get better.
The highest inflation in 41 years, the ongoing war between Russia and Ukraine, supply chain issues and a host of additional issues continue to pressure equity markets. Many investors are getting nervous, especially with the Nasdaq already in and out of bear market status.
We’ve decided to sift through Goldman Sachs’ list of condemnations, looking for ideas for worried investors who have a defensive posture and pay strong dividends. The reason they make sense now is that they are the best ideas from the biggest investment bank, not just on Wall Street but in the whole world.
It is important to remember that no single analyst report should be used as the sole basis for any buy or sell decision.
Bank of America
Bank of America Corp. (NYSE: BAC) released very strong first quarter results, and rising interest rates are welcomed by banks. The company is ubiquitous in the United States, providing various banking and financial products and services to individuals, small and medium-sized businesses, institutional investors, corporations and governments in the United States and abroad. It operates 5,100 banking centers, 16,300 ATMs, call centers, and online and mobile banking platforms.
Bank of America has expanded into several new US markets, with scale across the country that positions it well to benefit from accelerating loan growth over the next two years. Moreover, unlike its smaller peers, the size allows the bank to significantly increase its investments over the next few years without significantly compromising returns, leading to further market share gains.
Banks of any size are a solid idea as the potential for higher net interest income (NII) on portfolio loans to homeowners, farmers and small business owners. The NII is one of the most powerful tailwinds provided to financial firms in a rising rate environment, as they can earn better returns on their cash balances while earning higher rates of return from customers. who apply for loans.
Bank of America stock investors receive a 2.32% dividend. Goldman Sachs’ target price of $47 is below the consensus target of $49.16 but well above Thursday’s close of $36.81.