At Extreme Investor Network, we understand the importance of finding quality companies that are not only paying dividends but also growing their payouts. With the Federal Reserve cutting interest rates, dividend-paying equities are back in the spotlight as income investors look for attractive yields compared to Treasury yields.
Goldman Sachs recently conducted a screening for stocks that offer both solid dividend yield and dividend growth, all while ensuring they are covered by the company’s earnings or free cash flow. The criteria included a buy rating at Goldman, an estimated dividend yield of 2% or more in 2025, and a compound annual growth rate (CAGR) of 5% or more in dividend-per-share.
One of the companies that made Goldman’s cut is Best Buy, with a current yield of 3.84% and a high dividend-per-share CAGR of 20% based on estimates from 2024 to 2026. The retailer, which is in the midst of a turnaround, has seen positive results in recent earnings reports and raised profit guidance for the year.
Citigroup is another stock on Goldman’s dividend-oriented buy list, sporting a 3.58% dividend yield and a 19% CAGR in dividend-per-share estimated between 2024 and 2026. The bank’s stock has also seen an increase this year, making it a promising investment option.
For investors interested in real estate investment trusts (REITs), American Homes 4 Rent and Prologis are worth considering. Both companies offer solid dividend yields and growth potential, with Prologis owning warehouses and industrial properties while American Homes 4 Rent focuses on single-family homes.
In the oil sector, integrated producer Chevron is expected to have a dividend yield of 4.9% next year, with an estimated 5% CAGR in dividends-per-share between 2024 and 2026. Despite some challenges with mergers and acquisitions, Chevron remains a strong contender for dividend-focused investors.
At Extreme Investor Network, we provide expert analysis and unique insights into the world of investing, helping our readers make informed decisions and maximize their returns. Stay tuned for more updates and recommendations on dividend stocks and other investment opportunities.