Goldman Sachs identifies dividend-paying stocks like PepsiCo, Citigroup, and Xcel Energy as potential safe havens for investors navigating market volatility.
Goldman Sachs identifies dividend-paying stocks like PepsiCo, Citigroup, and Xcel Energy as potential safe havens for investors navigating market volatility.

Tidying Up Your Portfolio: A Call to Order

Right so the markets are a bit of a bloody mess aren't they? Like a teenager's room after a week long gaming binge. You've got Trump tweeting about tariffs Powell at the Fed doing... well who knows what he's doing. The S&P is down and frankly it's enough to make a sane man want to retreat into a darkened room with nothing but a bottle of scotch and a well worn copy of 'Maps of Meaning'. But that my friends is precisely what we *cannot* do. We must face the chaos tidy our rooms and invest wisely. Goldman Sachs bless their capitalist hearts has offered a potential solution: dividend paying stocks. Now I'm not saying this is the key to eternal financial bliss but it's a start. It's about imposing order on chaos wouldn't you say?

The Goldman Gospel: Dividends and Discipline

Goldman in their infinite wisdom (or perhaps just their algorithms) has screened for stocks that offer a dividend yield of at least 2.5%. But it's not just about the immediate payout is it? It's about the *potential* for growth the *sustainability* of the payments. They're looking for companies that can weather the storm that have a dividend coverage ratio exceeding 1.0x in 2025 and 2026. It's about delayed gratification about building a foundation for the future. Remember chaos is information but you can't let it drown you. Find the signal in the noise and for heaven's sake clean your room! It is not the casino!

PepsiCo: A Salty Sugary Safe Haven?

First up we have PepsiCo. Now I'm not one for promoting sugary drinks and processed snacks but let's be honest people *crave* that garbage. And when people crave companies profit. Pepsi's down 7% in 2025 but they've raised their annual dividend for 53 consecutive years. Fifty three years! That's longer than some marriages last. Bank of America downgraded them citing concerns about Frito Lay North America but they still acknowledge the company's 'phenomenal gross margin productivity' in international markets. The analysts are 'largely neutral' which in analyst speak probably means 'we have no bloody idea what's going to happen but we need to keep our jobs'. Still a 13% upside from current levels is nothing to scoff at. It is something to behold!

Citigroup: Too Big to Fail...Again?

Next we have Citigroup. Shares are off but their dividend yield is 3.4%. They just posted first quarter earnings that topped estimates thanks to gains in fixed income and equities trading. Sounds a bit like rearranging deck chairs on the Titanic doesn't it? But hey at least they're making money. Wells Fargo analyst Mike Mayo says they didn't 'stub their toe'. Which is analyst speak for it did not come crashing down. So there you have it. A bank that hasn't screwed up... *recently*. Maybe it's a sign of the apocalypse.

Xcel Energy: Powering Your Portfolio (and Your Home)

Finally we have Xcel Energy. A utility company. About as exciting as watching paint dry but at least the lights stay on. They raised their dividend by 4.1% and analysts largely like the company. Consensus price targets call for upside of more than 5%. I'd not invest in anything less but that is just me. It is something to be proud of!

Clean Your Room...and Your Portfolio

So there you have it. A few potential safe havens in a sea of chaos. But remember investing is not a substitute for taking responsibility for your own life. Clean your room stand up straight with your shoulders back and for God's sake don't fall for the siren song of identity politics. And if all else fails blame the lobsters. Those sneaky crustaceans are always up to something. The underlying frame work of this system is absolutely absurd!


Comments

  • Grampy profile pic
    Grampy
    5/23/2025 7:22:08 PM

    Are there any other suggestions other than these companies, I do not really feel like these suggestions are that good.

  • skamatha profile pic
    skamatha
    5/19/2025 5:56:32 PM

    I prefer Coke, but I guess dividends are dividends.

  • lainikuumba profile pic
    lainikuumba
    5/3/2025 11:15:39 AM

    JP is always good for a laugh... and some solid advice!

  • huttriver profile pic
    huttriver
    5/2/2025 5:10:12 AM

    Thanks Jordan, cleaning my room now!

  • DAVINDER profile pic
    DAVINDER
    4/29/2025 7:47:32 PM

    So, I should buy Pepsi and blame my failures on shellfish? Got it.

  • mizzwright27 profile pic
    mizzwright27
    4/23/2025 5:25:38 PM

    This is great advice! Now to clean my room...