Goldman Sachs' Conviction List Highlights High-Yield Dividend Stocks

Goldman Sachs' August Conviction List features five high-yield dividend stocks that analysts believe will outperform the market. These stocks offer yields ranging from 2.57% to 6.39% and have strong upside price targets. One of the top picks, United Parcel Service (UPS), has a dividend yield of 6.43% and a Goldman Sachs price target of $132, which implies a 29% gain from current levels.

UPS announced last year that it would cut its shipping volume for e-commerce giant Amazon by more than 50% by the second half of 2026 as part of its strategy to focus on more profitable business segments. Despite this move, UPS has never trimmed its dividend since listing in 1999, providing reassurance to investors.

The other top picks from Goldman Sachs' Conviction List include Citizens Financial Group (CFG), ConocoPhillips (COP), and TPG (TPG). CFG offers a dependable 2.56% dividend yield and has a Goldman Sachs price target of $84, which represents a 14.3% gain. COP has completed a $22.5 billion purchase of Marathon Oil in November 2024 and has a solid dividend yield of 2.55%. TPG pays a strong 4.15% dividend yield and has rallied sharply off its 52-week lows.