As the aging bull market presses ahead, it is pretty easy to see there has been a big rotation out of growth and momentum stocks and into value and cyclical companies. That rotation could be reverting back to the mean. Given the massive move since the market lows of March 2020, many investors sense that it is time to move to stocks that still have growth potential but also pay a solid dividend. Despite some hand wringing over the potential for higher interest rates, they remain near generational lows across the board.
We decided to screen the Goldman Sachs Americas Conviction List, which is a collection of the top equity ideas that pay a solid and dependable dividend higher than the S&P 500 yield of 1.31% and the 30-year U.S. Treasury bond of 1.91%.
We found six that look like outstanding total return ideas now. All are positioned well for the rest of 2021 and beyond. It is important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.
This remains a solid pharmaceutical stock to own long term and offers among the best values now for investors. Bristol Myers Squibb Co. (NYSE: BMY) is a global pharmaceutical company focused on discovering, developing, licensing and marketing chemically synthesized drugs or small molecules and biologics in various therapeutic areas, including virology comprising human immunodeficiency virus infection (HIV), oncology, neuroscience, immunoscience and cardiovascular.
The company’s products include the following:
- Opdivo for anti-cancer indications
- Eliquis, an oral inhibitor targeted at stroke prevention in adult patients with non-valvular atrial fibrillation, and the prevention and treatment of venous thromboembolic disorders
- Orencia for adult patients with active RA and prostate-specific antigen, as well as reducing signs and symptoms in pediatric patients with active polyarticular juvenile idiopathic arthritis.
Shareholders receive a 2.88% dividend. Goldman Sachs has a massive $94 price target, while the Wall Street consensus target is $75.37. Bristol-Myers Squibb stock closed trading at $68.15 on Thursday.
This stock remains a top financial pick across Wall Street. Citizens Financial Group Inc. (NYSE: CFG) operates approximately 2,700 ATMs and 1,000 branches in 11 states in the New England, Mid-Atlantic and Midwest regions, as well as through online, telephone and mobile banking services, and it maintains approximately 130 retail and commercial non-branch offices.