Shaky tariff policies and tumultuous markets mean investors may have to take a defensive stance and find steady income to shield their portfolios — and Goldman Sachs has a few names that might fit the bill. Even as the three major averages were higher on Monday, the past month hasn’t been kind to stocks. The S & P 500 is off nearly 4% in the past month, while the Nasdaq Composite is down by nearly 6%. “As policy uncertainty (particularly around tariffs) weighs on market sentiment and growth expectations, investors have been increasingly looking to play defense as evidenced by recent outperformance of lower volatility stocks,” wrote Goldman’s Deep Mehta in a report last week. To that end, his team drew up a list of buy-rated names with estimated 2025 dividend yields of at least 2.5% and strong growth in dividends per share and free cash flow/earnings per share – that is, an expected compound annual growth rate of at least 5% in 2024 through 2026. The names also must have an estimated dividend coverage ratio of at least 1x EPS (for financials, real estate and utilities) or free cash flow (for all other sectors) in 2025 and 2026. This metric, also known as dividend cover, is equal to the company’s net income divided by the dividend paid. Here are the stocks that turned up in Goldman’s search. Zions Bancorporation made the cut. The stock has a current dividend yield of 3.4%, and shares are down nearly 7% in 2025. Wall Street is largely ambivalent on the stock, with 16 out of 22 analysts rating it hold, per LSEG. Still, consensus price targets call for 22% upside from current levels. Fourth-quarter earnings came in at $1.34 per share, topping consensus estimates for $1.26 per share, according to StreetAccount. Net interest income – or the difference between revenue generated by interest and the interest expenses paid out to depositors – of $627 million also surpassed the Street’s expectations of $620.8 million. “ZION increased its [net interest income] outlook to ‘moderately’ increasing in 2025 vs. 2024,” wrote D.A. Davidson analyst Peter Winter in a late January report. “The margin increased throughout 2024 to 3.05% in 4Q vs. 2.91% in 4Q23 and is expected to continue expanding throughout the year driven by fixed asset repricing and lowering deposit costs,” he added, lifting his price target to $69 per share from $66. Beverage and snacking giant PepsiCo was also on Goldman’s list. Last month, the company announced that it would hike its annualized dividend by 5% to $5.69 per share, starting with the June 2025 payment. That marks the company’s 53rd consecutive annual dividend increase. Shares are down 4% in 2025, and the stock has a current dividend yield of 3.7%. Goldman Sachs is in good company on its buy rating for Pepsi: Bank of America also deems it a buy. On Monday, the firm dialed back its expectations for Pepsi’s first-quarter organic sales “from slightly positive to slightly negative, but still rounding to flat for the quarter.” That change reflects lowered expectations for Frito organic sales, according to a report from Bank of America analyst Bryan Spillane. Analysts largely rate the name a hold, per LSEG, but consensus price targets see more than 11% upside from current levels. Finally, NextEra Energy also emerged on Goldman’s list. Shares are down more than 2% in 2025, and the stock has a dividend yield of 3.2%. Last month, the company declared a quarterly dividend of $0.5665 per share, reflecting a roughly 10% increase from the year-ago period. Mizuho’s Anthony Crowdell is neutral on NextEra, but notes that renewables offer a “bridge to gas and nuclear” – the energy sources data centers will need in order to proliferate. “NEE’s experience operating and developing renewables, gas-fired, and nuclear generation makes them the ultimate ‘all forms of energy’ company,” he wrote in a March 19 report. “While gas plants provide the 24/7 energy that data centers require, NEE noted gas-fired and nuclear generation cannot meet demand in the near-term (2025-30) because both supply chains will need to be rebuilt,” Crowdell added. Analysts are largely bullish on the name, with 15 out of 23 rating it a buy or strong buy, per LSEG. Consensus price targets suggest upside of about 20% from current levels. Other names on Goldman’s list include Citigroup , SLB and Brixmor Property Group .
