Goldman Sachs: Like Dividends? Check Out These Names

Dividends: some people think they’re totally meaningless, and other people view them as central to their investing strategy.

Goldman Sachs (GS) has a new piece of research aimed at the latter.

First, here’s a chart indicating where you should begin your hunt.

So, telecom, utilities, beverage/food/tobacco, pharama all are obvious, solid choices.

But of course, a fat dividend could be a big red flag that something’s wrong, so you can just chase the highest yield.

What does Goldman recommend?

  • Companies with at least 3% yield.
  • Companies with a consistent dividend history.
  • A likelihood of dividend growth.
  • No companies with FCF yield below 5%
  • No companies with debt-to-equity greater than 100%
  • Only companies that are “buy-rated” (seems a little tautological to us)

Anyway, here are the names they found through their screening:

For another take, here’s a list of companies where the dividend is higher than the bond yield — always an interesting situation.

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