Buy these 16 high-cash-returning stocks to secure the best chance at outperformance as the economy keeps slowing
David Kostin at Goldman Sachs says investors should buy stocks that return a lot of cash. Kostin also says that companies with higher capex rates will have a more difficult time.
Goldman Sachs is part of that consensus, and the firm expects the S&P 500 index to slip to 4,000 sooner rather than later. Chief US Equity Strategist David Kostin wrote in a recent note to clients that investors should focus on total returns in the form of dividends and stock repurchases, in addition to stock price appreciation., he wrote that companies that return cash to their shareholders will become appealing investments in the months to come.
The opposite has happened over the first few months of 2023, as high-growth stocks — which generally plow more money into their businesses — have outperformed. That was a reversal of what happened in 2022, when growth names were crushed."We expect capex spending to slow in 2023, representing a headwind to capex-exposed stocks," he wrote.
Kostin wrote that he expects dividends to grow 5% in 2023, while buybacks are cut by 10%, which indicates to Kostin and his team that dividend-paying companies will have an easier road ahead.
Malaysia Latest News, Malaysia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Goldman Sachs says these 'compelling' stocks are earnings season winnersGoldman Sachs named a slew of stocks to buy following a busy earnings season.
Read more »
First Republic asset sales would pose 'contained damage' to residential mortgage bond market, says GoldmanAny rescue plan of First Republic Bank that includes sales of its government backed housing bonds is unlikely to stress the market, says Goldman Sachs.
Read more »
Mark Zuckerberg's wealth surges to $87 billion amid mass layoffsMark Zuckerberg, whose Meta laid off thousands of people, is now the 12th richest person on the planet after his wealth surged to $87 billion
Read more »
Rick Rieder investing strategy: portfolio ideas and adviceBlackRock bond chief Rick Rieder manages $2.7 trillion and just took home a Morningstar award for best portfolio manager. He told us how he's investing as the economy fades.
Read more »
8 stocks with strong buy ratings, and high dividends: Fintech company8 stocks with strong buy ratings, high dividends, and above 20% upside, according to a fintech company that ranks them
Read more »
20 cities where rent is falling as prices rise nationally: reportRent continues to climb across the nation — but apartments in these 20 cities are actually getting more affordable
Read more »