Goldman Sachs Names Top Dividend-Paying Financials Among Hedge Funds and Mutual Funds

Goldman Sachs has analyzed $10 trillion in equity positions and identified four dividend-paying financials as top picks by both hedge fund and mutual fund managers.

The report, which analyzed portfolios at the start of the third quarter of 2026, found that hedge funds remain closely tied to the AI trade, while mutual funds are underweight in this complex. Outside of AI, however, both groups agree on sector tilts, with large overweights in Health Care and underweights in TMT.

The four shared favorites among hedge fund and mutual fund portfolio managers are all large-cap financial stocks that pay dividends. Bank of America (BAC), Capital One Financial (COF), Mastercard (MA), and Visa (V) have all been rated a Buy by Goldman Sachs, with target prices set at $74 for BAC, $247 for COF, $701 for MA, and $438 for V.

The dividend yields on these stocks range from 0.59% to 1.74%, and the companies' quarterly dividends have been increased in recent months, with Bank of America raising its payout twice in the past year.