**Goldman Sachs' Top Dividend Stock Picks Amid Market Rally Slowdown**

As the current market rally marks its second anniversary, investors are being advised to prepare for lower returns over the next decade. To navigate this evolving landscape, many are turning to high-yield dividend stocks, which offer a mix of steady income and capital appreciation.

David Kostin, Chief U.S. Strategist at Goldman Sachs, alongside his team, has forecasted a mere 3% annualized nominal total return for the S&P 500 index over the next 10 years. Moreover, there is a 72% probability that the index will underperform Treasury bonds, and a 33% chance it will lag behind inflation through 2034. These projections highlight the increasing appeal of dividend stocks, known for their reliable income streams and potential for long-term growth.

Among the top picks recommended by Goldman Sachs, Devon Energy stands out. Engaged in hydrocarbon exploration across the United States and Canada, Devon Energy Corporation (NYSE: DVN) focuses on oil, natural gas, and natural gas liquids. The company employs a variable dividend strategy, paying shareholders a significant 5% dividend. Operating about 19,000 wells, Devon Energy also offers midstream energy services and owns stakes in the publicly traded EnLink midstream company (NYSE: ENLC).

Another notable recommendation is Kodiak Gas Services Inc. (NYSE: KGS), which operates in the compression infrastructure sector for the oil and gas industry in the United States. Divided into Compression Operations and Other Services segments, Kodiak Gas Services provides a range of services including station construction and maintenance. The stock currently pays an attractive 5.31% dividend and appears poised for significant growth.

Pfizer Inc. (NYSE: PFE), an American multinational pharmaceutical and biotechnology giant, also made Goldman Sachs' list. Despite recent declines as the demand for COVID-19 boosters wanes, Pfizer continues to offer a robust dividend yield of 5.81%, with consistent annual increases over the past 14 years. The company has showcased revenue growth in its non-COVID product portfolio and raised its full-year 2024 revenue guidance to between $59.5 and $62.5 billion. Third-quarter results are anticipated on November 8.

Lastly, Verizon Communications Inc. (NYSE: VZ), a leading telecommunications conglomerate, has been highlighted for its value proposition. Trading at 9.5 times estimated 2025 earnings, Verizon offers a compelling 6.20% dividend. The company provides a range of wireless and wireline services, including fixed wireless access broadband and fiber-optic network services under the Verizon and TracFone brands.

In summary, with the market expected to cool, Goldman Sachs' carefully selected high-yield dividend stocks offer a promising route for steady income and capital growth. Investors are encouraged to consider these recommendations for their portfolios as they navigate the expected economic shifts.