Goldman Sachs analysts say more of the Magnificent Seven members are likely to follow Meta platforms in introducing a dividend this year.
In particular, Alphabet and Amazon.com would be in a good position to do so, the analysis said. They noted that investor interest in dividend-paying stocks has grown since earlier this month, when Meta introduced its first quarterly dividend.
Additionally, during the final quarter of 2023, many major U.S. firms Wall Street earnings forecasts. In light of these factors, the team of analysts raised its forecast of S&P 500 companies’ dividend-per-share payouts this year from 4% to 6%.
The analysts said companies most likely to introduce or increase dividends will be those with stable earnings, wide profit margins, relatively low valuations and existing share buyback programs.
