Goldman Sachs Top European Stock Picks Have a Hidden Perk for Income Investors

The Goldman Sachs European Conviction List is a curated list of stocks that the firm’s research team believes are highly likely to outperform the market. It’s a tool for investors to identify stocks with strong growth potential, frequently updated to reflect changes in market conditions and company performance. The list targets stocks in which Goldman Sachs analysts have the “highest level of conviction” regarding their outperformance. The list has focused on specific themes, such as artificial intelligence, consumer trends, and sustainability. The Conviction List offers investors a valuable perspective on the stock market, helping them identify potential investment opportunities.

Founded in 1869, Goldman Sachs is the world’s second-largest investment bank by revenue, and it ranks 32nd on the Fortune 500 list of the largest U.S. corporations by total revenue. The Wall Street white-glove giant offers financing, advisory services, risk distribution, and hedging to its institutional and corporate clients.

We screen the firm’s European Conviction List of top stock ideas each month, identifying new additions and removals. It makes sense for growth and income investors to own shares of the top dividend-paying European stocks on the Goldman Sachs Conviction List. Adding these companies helps reduce dependence on the U.S. stock indices.

Why We Recommend Goldman Sachs Stocks

Goldman Sachs is the acknowledged leader in the investment landscape on Wall Street and worldwide. The firm’s top-notch research department continues to provide institutional and high-net-worth clients with the best ideas across the investment spectrum. It will likely continue to do so for years.

Here are the four stocks on the Goldman Sachs European Conviction List for October. All pay solid dividends and trade on U.S. exchanges.

ASML

This semiconductor capital equipment giant leads the industry and pays a 0.50% dividend. ASML (NASDAQ:ASML | ASML Price Prediction) is a holding company based in the Netherlands and operates through subsidiaries in:

• Netherlands
• United States
• Italy
• France
• Germany
• United Kingdom
• Ireland
• Belgium
• South Korea
• Taiwan
• Singapore
• China
• Hong Kong
• Japan
• Malaysia
• Israel

The company operates through one business segment that develops, produces, markets, sells, upgrades, and services advanced semiconductor equipment systems, including lithography, metrology, and inspection systems.

ASML offers TWINSCAN systems equipped with lithography systems using a mercury lamp as the light source (i-line), krypton-fluoride, and argon-fluoride light sources for processing wafers in manufacturing environments that require imaging at a small resolution. TWINSCAN systems also include immersion lithography systems (TWINSCAN immersion systems).

Banco Bilbao Vizcaya Argentaria

Known as BBVA worldwide, this Spain-based financial leader offers a robust 4.4% dividend. Banco Bilbao Vizcaya Argentaria (NYSE:BBVA) is a diversified financial company engaged in retail banking, wholesale banking, asset management, and private banking. Its segments are:

• Spain
• Turkey
• Mexico
• South America
• Rest of Business

In Spain, it operates in banking and insurance. The Turkey segment is represented by Garanti BBVA, an integrated financial services group that also operates in Holland and Romania. And the Mexico segment activities include banking and insurance businesses. In South America, it provides banking and insurance businesses.

The Rest of Business segment includes business activity in the rest of Europe and Asia, and in the United States, where it offers services through BBVA USA and the BBVA New York branch.

Haleon

Haleon (NYSE:HLN) is a consumer healthcare company. It is under the radar and pays a solid 2.27% dividend. The company’s product portfolio spans six major categories, including:

• Oral health
• Vitamins, minerals, and supplements
• Pain relief
• Respiratory health
• Digestive health
• Therapeutic skin health

Haleon’s respiratory health brands offer product solutions for a range of respiratory issues, including cold and flu, nasal congestion, coughs, and allergies. Those brands include Otrivin, Theraflu, Flonase, Contac, and Beechams.

The company’s oral health brands include Sensodyne, Polident, and Parodontax. Its VMS brands include Centrum, Emergen-C, and Caltrate, and its pain relief brands include Voltaren, Panadol, and Advil.

Its digestive health brands include TUMS, ENO, and Benefiber, and its therapeutic skin health brands include Fenistil, Zovirax, and Bactroban.

Company segments include North America, Europe, Asia Pacific, and International.

HSBC

This worldwide financial giant pays a healthy 3.94% dividend. HSBC (NYSE:HSBC) is a banking and financial services company. Its business segments include:

• Hong Kong
• United Kingdom
• Corporate and Institutional Banking (CIB)
• International Wealth and Premier Banking (IWPB)

Its Hong Kong business comprises retail banking and wealth and commercial banking of HSBC Hong Kong and Hang Seng Bank. The UK business comprises UK retail banking and wealth (including First Direct and M&S Bank) and UK commercial banking, including HSBC Innovation Bank.

The CIB segment is formed from the integration of its commercial banking business (outside the UK and Hong Kong) with its global banking and markets business.

The IWPB segment comprises premier banking outside of Hong Kong and the UK, its private bank, and its wealth management businesses of asset management and insurance. It serves customers worldwide through a network covering 56 countries and territories. Customers range from personal banking and wealth customers to large corporates, institutions, and governments.

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