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Shares of large, cash-rich companies have benefitted from a slowing growth environment this year while the broader market has sold off. The iShares Select Dividend ETF — composed of high-dividend-paying U.S. stocks — reflects this trend. It is up 1.63% this year compared to the 17.2% decline in the S & P 500 ETF (which includes the gains earned from cash dividends) over the same period. Given some analysts’ expectations of steep declines in share prices next year, Goldman Sachs has put together a basket of high-dividend stocks that could help investors hide from any potential carnage. Goldman Sachs analysts said that only companies making “sustainable” dividend payouts are included in their list. This process filters out companies that artificially boost dividends by borrowing excessively. Of the 50 equities listed by the investment bank in a note to clients on Dec. 16, CNBC Pro screened for those expected to pay at least 8% in dividends next year and see an appreciation in their share price. Perhaps unsurprisingly, banks are expected to be big dividend payers next year as most benefit from a high-interest rate environment. Goldman expects Madrid-headquartered Banco Bilbao Vizcaya Argentaria to increase its dividends to 8.2% next year from its current 6.48%. The median analyst price target on the stock also gives it 30% upside from current levels, according to FactSet. The world’s second-largest shipping company is also a Goldman favorite for high dividend yields. AP Moller-Maersk , which moves nearly a fifth of all container goods worldwide, is expected to payout 9.3% in dividends next year. The company has benefitted from the soaring cost of transportation during the pandemic. Shipping prices shot up by more than 550% to $10,000 a container in 2021, according to the Freightos freight index . But rather than buying up more ships to expand its fleet, Maersk has chosen to diversify its earnings instead. It invested nearly all of its windfall profits in land-based transportation and warehouse expansions, according to S & P Global Commodity Insights. Along with a big dividend, the median analyst price target gives the stock 22% upside from current levels, Factset data shows. Elsewhere, Norwegian fertilizer maker Yara International is expected to pay out 9% to shareholders, while Belgian mobile service operator Proximus is expected have a 11.6% dividend yield, according to Goldman.
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