Goldman Sachs recommends solid dividend stocks for stability

Goldman Sachs has recommended several dividend-paying stocks for investors seeking stability in uncertain market conditions. With recent volatility in the markets, including declines in major stock indices, investors are looking for reliable income sources. The S&P 500 has dropped nearly 4% and the Nasdaq Composite is down about 6% in the past month. Goldman Sachs highlights that as tariff policies and market uncertainties persist, investors should consider less volatile stocks. Goldman's list includes stocks expected to have dividend yields of at least 2.5% for 2025, alongside strong growth forecasts for dividends per share and cash flow. The selected companies also meet criteria ensuring they can comfortably cover their dividend payments. One stock on the list is Zions Bancorporation, which has a current dividend yield of 3.4%. Although shares are down nearly 7% this year, analysts project a 22% increase in the stock price. Recent earnings exceeded expectations, suggesting a positive outlook. Another company highlighted is PepsiCo. The beverage giant will increase its annual dividend by 5% starting in June 2025. Shares are down 4% this year, but analysts still expect more than an 11% rise in stock price. NextEra Energy is also recommended. With a dividend yield of 3.2%, the company recently increased its quarterly dividend by about 10% compared to last year. Analysts remain optimistic about its potential, projecting a 20% increase in stock price. Other stocks mentioned in Goldman's recommendations include Citigroup, SLB, and Brixmor Property Group. These companies are positioned as strong dividend payers in a challenging market.