Tags: goldman | dividend | stocks | yields

Goldman: Buy 10 Dividend Stocks Amid Diving Yields

Goldman: Buy 10 Dividend Stocks Amid Diving Yields
(Dollar Photo Club)

By    |   Thursday, 22 August 2019 09:45 AM

Goldman chief U.S. equity strategist David Kostin recently urged investors to buy 10 high-dividend yielding stocks as rates continue to fall.

Kostin said high-dividend payers are trading at their cheapest levels in nearly 40 years relative to stocks with low yields, CNBC explained.

With the 10-year Treasury yield at just above 1.5% and the Fed likely to cut two more times this year, “investors should look for opportunities in dividend stocks,” Kostin said in a recent note.

  1. AT&T (T)
  2. Kohl's (KSS)
  3. Archer-Daniels-Midland (ADM)
  4. Valero Energy (VLO)
  5. Citizens Financial Group (CFG)
  6. AbbVie (ABBV)
  7. Eaton (ETN)
  8. Seagate Technology (STX)
  9. Simon Property Group (SPG)
  10. Evergy (EVRG)

The S&P 500 dividends rose by 9% in the first and second quarters this year, Goldman says.

AT&T, Kohl’s and data storage company Seagate Technology all sport a dividend yield of about 6%, Goldman notes.

To be sure, defensive equity strategies focused on high payouts and steady earnings have gained in popularity this year as investors flock to safety, worried the biggest stock market rally in decades is about to come crashing down, Reuters recently explained.

Investors have piled into defensive sectors, which generate higher dividends and have steady revenue streams, for the first time in two years, viewing them as the safest bet as global growth slows and trade tensions rise, data shows.

Globally, utilities stocks have pulled in $4.5 billion this year while consumer goods stocks have drawn in $3.2 billion, according to EPFR data. This breaks a two-year exodus from those sectors and is the latest sign of how uneasy investors are with stocks at record-high levels in a worsening economic climate.

The inflows accelerated at the start of May, when hopes of a truce in a trade war between the U.S. and China were dashed.

The strategy has paid off.

Unusually, focusing on the parts of the stock market considered safer not only protected investors from the worst of the sell-off late last year, but also helped them outperform during the first-quarter rally of 2019.

High-dividend and “low volatility” stocks, which tend to move less sharply than the average stock, have beaten market benchmarks. That underscores how “defensive”, not to mention hated, this year’s rally has been.

“You have your equity market that’s up 16% (year-to-date) but low volatility is beating it. You certainly don’t expect that in any other bull market,” said Nick Alonso, director of multi-asset at PanAgora Asset Management in Boston.

“Defensive assets did well in Q4, they protected on the downside and they also picked up that upside in Q1,” he added.

© 2019 Newsmax Finance. All rights reserved.

   
1Like our page
2Share
StreetTalk
Goldman chief U.S. equity strategist David Kostin recently urged investors to buy 10 high-dividend yielding stocks as rates continue to fall.
goldman, dividend, stocks, yields
424
2019-45-22
Thursday, 22 August 2019 09:45 AM
Newsmax Media, Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved