3 top Goldman Sachs dividend stocks yielding as high as 13.6% — they're all attractively valued and provide growth upside to boot

But you don’t necessarily need a rallying market to make money in stocks — you can also collect dividends.

Of course, given the number of dividend stocks on the market, it can be hard to find a starting point.

Luckily, a team of Goldman Sachs analysts — led by chief investment officer David Kostin — have just compiled a list of stocks that could be an opportunity for income hunters. These companies offer attractive valuations, high dividend yields, and solid growth prospects.

The team points out that dividend stocks are well-positioned for inflationary periods. In July, U.S. consumer prices rose 8.5% from a year ago.

At the same time, Kostin’s team notes that dividend-paying companies often boast strong balance sheets. In the event of an economic downturn, strong balance sheets can help them withstand the storm.

Here’s a look at three companies on the list that are particularly generous.

Pioneer Natural Resources (PXD)

Pioneer Natural Resources is an independent oil and gas exploration and production company.

Thanks to the strong rallies in oil and gas prices this year, the company is firing on all cylinders. Year to date, PXD shares are up 35% — in stark contrast to the broad market’s double-digit loss.

But it’s the sheer size of Pioneer’s shareholder payout that makes it stand out.

The company’s board recently declared a cash dividend of $8.57 per share for the third quarter. On an annualized basis, that translates to a yield of 13.6%

However, note that Pioneer has a base-plus-variable dividend policy. Its newly-declared payout includes a $1.10 base quarterly dividend and a $7.47 variable dividend.

In other words, the payouts are not carved in stone. But if the market for energy commodities remains strong, the company will likely continue dishing out oversized dividends.

Lumen Technologies (LUMN)

Lumen Technologies is a technology and communications company with 450,000 route miles of fiber and customers in more than 60 countries. It offers a wide range of network, edge cloud, security, communication and collaboration solutions.

Unlike Pioneer, Lumen stock hasn’t been a hot commodity — shares are down about 14.5% year to date. But the company still deserves dividend investors’ attention.

Paying quarterly dividends of 25 cents per share, Lumen offers an annual dividend yield of 9.2%.

If you are wondering whether that level of payout is sustainable, management’s latest outlook might cheer you up.

In the Q2 earnings release, the company reiterated its full-year outlook, which includes paying dividends of $1.00 per share for the year — amounting to approximately $1.04 billion in total. Meanwhile, management expects Lumen to generate free cash flow of $2.0 to $2.2 billion for the year.