Goldman Sachs Says Foreign Investors Love These 4 U.S. Passive Income Dividend Stocks

According to the analysts at Goldman Sachs, foreign investor ownership of U.S. equities has increased by 11% during the past 25 years, to 18% from just 7% in 2000. While there are numerous reasons for this increase, according to them, one thing is for sure. The percentage of foreign ownership most likely stays at least at current levels. Still, it is likely to continue its move higher as the United States leads in product innovation and quality, and with strangling bureaucratic regulations likely to decline, the top companies may even become more efficient in producing goods and services that will enhance revenue and boost the stock prices.

Passive income is characterized by its ability to generate revenue without requiring the earner’s continuous active effort, making it a desirable financial strategy for those seeking to diversify their income streams or achieve financial independence. The more passive income can help cover rising costs like mortgages, insurance, taxes, and other expenses, the easier it is for investors to put away money for future needs as they prepare for retirement. Dependable recurring dividends from quality, high-yield stocks are a recipe for success.

Goldman Sachs screened the S&P 500 stocks, looking for the companies with the highest percentage of foreign ownership. We screened the 30 companies with the highest ownership percentage, looking for the stocks that pay the highest dividends. Five companies made the cut, and all are outstanding ideas for investors looking for safe and dependable passive income.

Why do we cover dividend stocks?

Since 1926, dividends have contributed approximately 32% of the total return for the S&P 500, while capital appreciations have contributed 68%. Therefore, sustainable dividend income and capital appreciation potential are essential for total return expectations. A study from Hartford Funds, in collaboration with Ned Davis Research, found that dividend stocks delivered an annualized return of 9.18% over the half-century period from 1973-2023. Over the same timeline, this was more than double the annualized return for non-payers (3.95%).

Smurfit Westrock

Being based in Dublin, Ireland, and paying a strong dividend could be the primary reason foreign investors hold 44% of the company’s shares. Smurfit Westrock PLC (NYSE: SW) is a multinational sustainable fiber-based paper and packaging solutions provider. Its segments include:

• Europe
• The Middle East and Africa (MEA)
• Asia-Pacific (APAC)
• North America, which includes operations in the United States, Canada, and Mexico

The Europe, MEA APAC, North America, and LATAM segments include a system of mills and plants that primarily produce a full line of containerboard, which is converted into corrugated containers within each segment or sold to third parties.

In addition, the Europe, MEA, and APAC segment also produces types of paper, such as:

• Solid board
• Honeycomb
• Solid board packaging
• Folding cartons, inserts, and labels
• Bag-in-box packaging

The LATAM segment comprises forestry, types of paper, such as boxboard and sack paper, and paper-based packaging, such as folding cartons, honeycomb, and paper sacks

Morgan Stanley

This Wall Street white-glove investment giant has a stunning 33% of its shares in the hands of foreign investors. Morgan Stanley (NYSE: MS) is a global financial services company that, through its subsidiaries, provides a range of investment banking, securities, wealth management, and investment management services.

The firm’s segments include:

• Institutional Securities
• Wealth Management
• Investment Management

Its Institutional Securities segment provides investment banking, equity and fixed income, and lending activities to corporations, governments, financial institutions, and high-net-worth clients.

The Wealth Management segment provides financial services and solutions to individual investors and small-to-medium-sized businesses and institutions, covering financial advisor-led:

• Brokerage
• Custody
• Administrative and investment advisory services
• Self-directed brokerage services
• Financial and wealth planning services
• Residential real estate loans and other lending products
• Banking; and retirement plan services

Its Investment Management segment provides a range of investment strategies and products.

Host Hotels & Resorts

Host Hotels & Resorts Inc. (NASDAQ: HST) is the world’s largest publicly traded lodging real estate investment trust (REIT), with a geographically diverse portfolio of luxury and upper upscale hotels, and foreign investors own 28% of the stock. This stock will stay in demand as travel continues to pick up in 2025. This S&P 500 company is one of the largest owners of luxury and upper-upscale hotels.

The company owns 76 properties in the United States and five internationally, totaling approximately 43,400 rooms. It also holds non-controlling interests in seven domestic and one international joint venture. A disciplined approach to capital allocation and aggressive asset management guides the company.

Host Hotels & Resorts partners with premium brands such as:

• Marriott
• Ritz-Carlton
• Westin
• Sheraton
• W
• St. Regis
• The Luxury Collection
• Hyatt
• Fairmont
• 1 Hotels
• Hilton
• Four Seasons
• Swissôtel
• ibis

Regency Centers

With a 3.86% dividend, this is a quality real estate idea for 2025. Regency Centers Corp. (NASDAQ: REG) is a REIT based in Jacksonville, Florida, and it is one of the largest shopping center operators. It is a preeminent national owner, operator, and developer of shopping centers in suburban trade areas with compelling demographics.

The company’s portfolio includes thriving properties merchandised with highly productive:

• Grocers
  Restaurants
  Service providers
  Best-in-class retailers that connect to their neighborhoods, communities, and customers

The company raised the shareholder dividend by 5.2% in December. That marked the 11th year in a row for a dividend increase. The company has steadily lifted its dividend since 2014.

Operating as a fully integrated real estate company, Regency Centers is a qualified REIT that is self-administered and self-managed and a member of the S&P 500 Index.

J.P. Morgan’s target price for the shares is $80.

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