Goldman: Fed could hike 3 times, buy these stocks

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Goldman Sachs said a tough stock market for money managers to outperform is about to get a lot tougher with the possibility the Federal Reserve hikes rates as many as three times this year. But the firm believes there is a way for these underperfoming managers to stay afloat.

"Stocks with high dividend yield, high dividend growth and low valuation should outperform, irrespective of the Fed's tightening path, help investors 'Stay Alive' in this, precarious market, and avoid the fate of Alexander Hamilton," wrote Goldman's David Kostin in a note, referencing the song in the Broadway sensation "Hamilton."

In anticipation of strong data in April and May, Goldman's economic team currently forecasts three 2016 rate increases, starting in June. But even if the firm's forecast is incorrect and the Fed is slower to raise rates, the strategist is bullish on its "dividend growth" basket.

The stocks in the basket have a higher dividend yield than the market (2.8 percent versus 2.1 percent), higher estimated dividend growth for the next two years than the market (12 percent versus 6 percent) and a lower P/E than the market (15 times versus 17.1 times).

Here is a selection of Goldman Sachs "dividend growth" recommended stocks.

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