Core Viewpoint - Major Wall Street firms have curated lists of top stock picks for both institutional and retail clients to consider for investment [1] Group 1 - The article highlights that all major Wall Street firms maintain a selection of preferred stocks for their clients [1]

Core Insights - Not all investors prioritize high-growth stocks; many seek investments that provide reliable passive income [1] - As investors age, the appeal of steady income sources increases, allowing for reinvestment of dividends to build wealth over time [2] - High-yield dividend ETFs may be preferable to individual high-yield stocks to avoid potential value traps [3] Investment Options - The Schwab U.S. Dividend Equity ETF (SCHD) offers a yield of 3.9% and has a low expense ratio of 0.06%, making it attractive for income-focused investors [5] - This ETF tracks the Dow Jones U.S. Dividend 100 Index, which employs strict criteria to avoid unsustainable high-yield stocks, focusing on metrics like free cash flow to total debt ratio and return on equity [6] - The index is reconstituted annually, ensuring that only companies meeting its standards remain, with 20 new stocks added and 17 removed last year, including Pfizer due to increased debt from an acquisition [7] - The Schwab U.S. Dividend Equity ETF has delivered a 12.2% average annual return since its inception in October 2011 [7] Market Context - High-yield ETFs can provide a reliable income stream for retirees, with the Schwab U.S. Dividend Equity ETF helping to mitigate the risk of value traps [8] - The Alerian MLP ETF also offers a high yield, with MLPs currently at low valuations and showing strong growth potential and improved balance sheets [8]

Group 1 - Low-yielding growth stocks have dominated the market, but many do not provide significant dividends [1] - The "Magnificent Seven" stocks heavily influence the S&P 500's low yield of 1.16%, prompting investors to consider combining income-generating assets with growth stocks [2] - High-yield dividend ETFs are popular among investors seeking to enhance income, but not all such ETFs perform equally [3] Group 2 - The Fidelity High Dividend ETF (FDVV) distinguishes itself by holding stocks with yields higher than the broader market, focusing less on traditional defensive sectors [4] - FDVV allocates 26% of its weight to technology stocks, which typically have lower yields, including top holdings like Nvidia, Microsoft, and Apple [5][6] - Despite Nvidia's low yield of 0.02%, FDVV has significantly outperformed other high-yield dividend ETFs, turning $10,000 into over $23,000 in five years [6][7] Group 3 - FDVV's trailing 12-month yield is 3.08%, more than double that of a basic S&P 500 ETF, indicating that tech exposure does not hinder yield [8]

Core Insights - Goldman Sachs, founded in 1869, is recognized as the world's second-largest investment bank by revenue [1] - The company is ranked 55th on the Fortune 500 list of the largest U.S. companies [1]

Core Viewpoint - Target and RH are facing significant challenges in a turbulent economic environment, with both companies experiencing substantial stock price declines in 2025, but they remain industry leaders with potential for recovery [1][2]. Target - Target's stock is down 31% year to date, with net sales declining by 2.8% year over year in Q1, and adjusted EPS of $1.30 reflecting a 36% decline from the previous year, missing Wall Street estimates [5][6]. - The company is adapting by increasing promotional efforts and shifting its sales mix to attract value-conscious shoppers, with e-commerce sales growing by 4.7% year over year [6][7]. - Target maintains profitability with a projected adjusted EPS between $7 and $9 for 2025, and offers a quarterly dividend of $1.12 per share, yielding 4.8% [7][8]. RH - RH, a leader in premium home furnishings, has seen its stock fall 58% in 2025 due to concerns over tariffs affecting its supply chain, primarily sourced from Asia [1][11]. - Despite the challenges, RH reported an 18% year-over-year growth in comparable net revenue for Q4 of fiscal 2024, with a projected revenue increase of 11% for 2025 [12]. - The company is optimistic about long-term growth potential and is working to diversify its supply chain, which could lead to a rebound in stock price if tariff uncertainties are resolved [11][13]. Investment Considerations - While Target offers a high-yield dividend, RH may present a better investment opportunity due to its unique position in the luxury market and potential for significant long-term growth [8][15]. - RH's forward P/E ratio is 16, compared to Target's 12, indicating that Target may offer better value despite its dividend yield [8].