US stocks remain range-bound as uncertainty related to Trump’s tariffs and what they may mean for the economy moving forward continues to weigh on the overall sentiment.
Amidst such a macroeconomic backdrop, Goldman Sachs’ chief of US equity strategy, David Kostin, expects investors to “reward firms returning cash to shareholders relative to ones investing for growth.”
In particular, Kostin sees three steady dividend payers, Tapestry, Marathon Petroleum, and Hewlett-Packard, doing well in 2025.
Let’s take a closer look at what each of these three has in store for investors this year.
Tapestry Inc (NYSE: TPR)
Goldman Sachs has high hopes for the owner of Coach and Kate Spade this year, as it has a strong and steady history of returning cash to shareholders.
Tapestry stock currently pays a dividend yield of 2% and has trimmed its manufacturing exposure to China as well, easing concerns that higher tariffs under the Trump administration could hurt its business in 2025.
Plus, the fast fashion retailer also offers a trailing 12-month buyback yield of an exciting 24%.
TPR is scheduled to report its earnings for the third quarter on May 8th.
Consensus is for it to earn 89 cents a share, which translates to about a 9.9% increase on a year-over-year basis.
Marathon Petroleum Corp (NYSE: MPC)
Goldman Sachs forecasts significant further upside in Marathon shares this year, even though they have already rallied well over 15% in recent weeks.
Marathon stock currently pays a dividend yield of 2.63%.
Plus, the US petroleum giant plans on leaving the financial burden of tariffs on suppliers and consumers, which makes it an even better bet for 2025.
Additionally, the oil stock offers a rather lucrative buyback yield of 17% as well.
The investment firm currently rates MPC shares at “buy” with upside to $173, indicating potential upside of roughly 25% from current levels.
Hewlett-Packard Enterprise Co (NYSE: HPE)
HPE has been one of the hardest hit tech stocks amidst a broader tariffs-driven rout in US equities this year.
Still, Goldman Sachs continues to see better days ahead for Hewlett-Packard Enterprise as it pays a healthy dividend yield of 3.19% at writing, which will help attract massive interest in HPE shares amidst macro uncertainty in 2025.
The investment firm also commented about a $1.5 billion stake that activist investor Elliott recently disclosed in Hewlett-Packard stock, a huge positive in its research note.
In March, HPE reported better-than-expected revenue for its fiscal Q1 and announced plans to lower its global headcount by 2,500 to cut costs, which may help sustain strength in its financials moving forward.
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