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Analyzing Goldman Sachs’s Stock Picks with Growing Dividends

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Top stock picks

In the previous part, we looked at Goldman Sachs’s outlook on the current market (VOO) (SPY) scenario. It focuses on high dividend paying stocks with cheap valuations. In this part, we’ll look at the stocks that Goldman Sachs (GS) recommended.

Goldman Sachs’s top stock picks are AIG (AIG), Amgen (AMGN), Corning (GLW), and Qualcomm (QCOM). According to Goldman Sachs, these stocks are providing higher dividends and their valuations are cheap.

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Amgen 

Amgen is a biotechnology stock. On a YTD (year-to-date) basis, it returned 8% as of August 24, 2016. On a yearly basis, the company’s revenue and earnings are also growing. Currently, it’s trading at a PE (price-to-earnings) multiple of 17.48x. Its valuation is lower compared to its competitor Biogen (BIIB). Biogen is trading at a PE multiple of 18.07x. The dividend yield of this stock is growing gradually. A high dividend yield is good for investors. It measures how much cash flow investors are getting for investing in this stock. Many hedge fund managers are also looking at this factor.

AIG

AIG is a property and casualty insurance company that provides various insurance products and services to individual, institutional, and commercial customers. On a YTD basis, it returned -2.5% as of August 24, 2016. On a yearly basis, the company’s revenue and earnings are falling. It’s trading at a PE multiple of -205.2x. However, the company’s dividend yield is growing.

In the next part of this series, we’ll analyze how Corning and Qualcomm performed.

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