To The Moon

As global stock markets repeatedly reach new highs, investors are actively seeking the next phase of investment opportunities. $Goldman Sachs(GS)$ , a top Wall Street investment bank, recently released a research report pointing out that against the backdrop of anticipated market corrections, sectors with sustainable dividend growth potential may become safe havens for funds, and specifically favors the dividend growth potential of the healthcare, utilities, and industrial sectors in 2026.

Goldman Sachs forecasts positive outlook for U.S. stocks through 2026

Goldman Sachs Predicts 6% Dividend Growth in 2026

Goldman Sachs has lifted its 12-month $S&P 500(.SPX)$ target to 6,900, up from 6,500 — its second upgrade in just two months. The 3-month and 6-month targets? 6,400 and 6,600, respectively. 🔼📈
Goldman Sachs predicts in its report that the $S&P 500(.SPX)$'s dividend growth rate will reach 6% in 2026. This forecast is higher than the market consensus of 5%.

Goldman Sachs Research forecasts that US economic growth will accelerate to 2-2.5% in 2026 because of reduced impact from tariffs as well as tax cuts and easier financial conditions.

Goldman says, $Gold - main 2602(GCmain)$ to Hit $4,900 in 2026, The Rally Has Legs.

Goldman Sachs analyzes that dividend growth is typically a function of earnings growth in the current year and the preceding two years. Although the $S&P 500(.SPX)$'s per-share dividend has already achieved a 7% year-on-year increase in the first three quarters of this year, the futures market remains pessimistic about future dividend pricing, indicating potential investment opportunities.

After 3 years of a bull market, the market generally expects a healthy correction of 10% to 15%. Analysis suggests that now may be the time for investors to lock in profits from tech stocks and shift towards high-quality companies with generous dividends and the potential for significant payouts in 2026. For investors seeking a balance between growth and income, rotating funds into these dividend-growth sectors favored by Goldman Sachs is a highly attractive strategy.

Goldman Sachs Favors Three Sectors and Five "Strong Buy" Stocks

Based on the above assessment, Goldman Sachs has selected several high-quality companies within the healthcare, utilities, and industrial sectors from its research portfolio. Below are five stocks that received a "Buy" rating and are considered to offer outstanding value at current prices:

Utilities Sector $Utilities Select Sector SPDR Fund(XLU)$

1. $American Electric Power(AEP)$ : One of the largest electric utility companies in the United States, serving over 5 million customers in 11 states. The company offers a reliable and generous dividend with a dividend yield of 3.12%. Goldman Sachs has given the stock a target price of $128.

2. $Eversource(ES)$ : An energy company serving customers in Connecticut, Massachusetts, and New Hampshire, with an impressive 23-year track record of increasing its dividend. The stock offers a respectable 4.11% dividend yield. Goldman Sachs has a target price of $79.

Healthcare Sector $Health Care Select Sector SPDR Fund(XLV)$

1. $Johnson & Johnson(JNJ)$: A diversified healthcare giant with businesses spanning pharmaceuticals, biotechnology, and medical devices. The stock has a forward P/E ratio of only 14.5 and a dividend yield of 2.81%. Goldman Sachs believes the current share price is highly attractive and has a target price of $213.

2. $Merck(MRK)$ : A global leader in the pharmaceutical industry, dedicated to developing and manufacturing pharmaceuticals, vaccines, and animal health products. Despite a more than 30% pullback in its share price over the past year, its 3.61% dividend yield remains particularly strong. Goldman Sachs has a target price of $93.

Industrial Sector $Industrial Select Sector SPDR Fund(XLI)$

1. $L3Harris Technologies, Inc.(LHX)$ : Focused on defense technologies, providing technology solutions connecting the space, air, land, sea, and cyber domains. This industrial/defense stock offers shareholders a reliable dividend with a dividend yield of 1.66%. Goldman Sachs has a target price of $327.

Investment Implications: As a leader in global investment banking, Goldman Sachs' research and market views are highly valued by institutional and high-net-worth investors. In the current market environment, this report provides investors with a clear sector allocation strategy: early positioning in industry leaders with stable earnings, strong cash flow, and the ability to continuously increase dividends may allow for relatively stable returns amidst potential market volatility and prepare for dividend growth in 2026.

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