OGN - Goldman highlights top sector picks for high dividend growth and yield

Goldman Sachs boosted its forecast for dividend growth this year, with earnings growth the primary driver. The equity team now sees dividend growth of +10% for 2022. S&P 500 (SP500) (SPY) dividends per shares "grew by +11% year/year in 1Q 2022," strategist David Kostin wrote in a note. "In contrast, the futures market is expecting S&P 500 dividend growth to be negative in 2023 and 2024."  "LTM dividends have not declined year/year outside of a recession in over 60 years," Kostin said. "Looking ahead, our forecast implies 6.7% CAGR dividend growth over the next ten years, significantly above market pricing of 0.4%." "We continue to recommend investors own stocks with high dividend yield and growth," he added. "Dividend stocks currently trade at attractive valuations and have historically outperformed during periods of elevated inflation." Goldman's High Dividend Growth basket comprises stocks with above-average dividend yields, high projected DPS growth and moderate

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Goldman highlights top sector picks for high dividend growth and yield