4 Goldman Sachs Conviction List Dividend Stocks are Perfect Ideas for 2022 – 24/7 Wall St.
Most investors were very sad to say goodbye to 2021, and with good reason. All major indexes had an incredible year, with the S&P 500 leading the group with a 26.9% gain, followed by the Nasdaq up 21.4% and the Dow Jones Industrial at 17.7%. The S&P 500 posted 70 new all-time highs during the year, a record that was only broken in 1995. Ultimately, if you didn’t make money last year, you you may want to change your financial advisor.
With storm clouds looming on the horizon and the potential for up to four interest rate hikes, many Wall Street strategists believe we’ll be lucky for high gains to single digits in 2022. We could very well have a 20% or bigger sell-off added to the mix. Goldman Sachs believes that quality energy and utility stocks are among the best ways for investors to go this year. These four stocks all pay big dividends and could very well provide shelter from the storm. Durable assets like real estate should also do well in a rising interest rate environment, and we found a very strong pick on the convictions list.
While all four picks on the convictions list are some of Goldman Sachs’ best ideas, it’s important to remember that no single analyst report should be used as the sole basis for any buy or sell decision.
With the potential for a colder winter, this company could look to extend its gains into 2022. DTE Energy Co. (NYSE: DTE) is Michigan’s largest utility. Its largest operating units are DTE Electric, an electric utility serving 2.2 million customers in southeast Michigan, and DTE Gas, a natural gas utility serving 1.3 million customers in the state. DTE Energy also has non-utility energy businesses that focus on energy and industrial projects, midstream natural gas and energy trading.
The Company’s Gas segment purchases, stores, transports, distributes and sells natural gas to residential, commercial and industrial customers throughout Michigan, and sells storage and transmission capacity. This segment has approximately 19,800 miles of distribution lines, 1,305,000 service lines and 1,273,000 active meters, as well as approximately 2,000 miles of transmission lines.
Its Gas Storage and Pipelines segment owns natural gas storage fields, lateral and gathering pipeline systems, and compression and surface facilities. It also has interests in interstate pipelines serving Midwest, Ontario and Northeast markets.
The Company’s Power and Industrial Projects segment offers metallurgical coke; pulverized coal and petroleum coke for steel, pulp and paper and other industries; and power generation, steam and chilled water, and wastewater treatment services, as well as the supply of compressed air to industrial customers.
Shareholders receive a dividend of 2.97%. Goldman Sachs’ price target on DTE Energy stock is $138, well above the consensus target price of $129.00 and Thursday’s closing price of $119.83.
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This stock has rallied nicely from the lows and is another solid idea for more conservative investors. NRG Energy Inc. (NYSE: NRG) is an integrated electricity company in the United States that generates, sells and supplies electricity and related products and services to 3.6 million residential, industrial and commercial consumers.