Amidst macroeconomic challenges and geopolitical tensions impacting the stock market, investors are turning to dividend-paying stocks for stability and potential returns. Top Wall Street analysts have identified three dividend stocks that are worth considering for investors seeking higher returns.
1. Enterprise Products Partners (EPD):
– EPD is a midstream energy services provider that has consistently increased its cash distribution for 25 consecutive years. They recently announced a 5.1% increase in their quarterly cash distribution to $0.515 per unit, reflecting a dividend yield of 7.1%.
– Analyst Elvira Scotto of RBC Capital reiterated a buy rating on EPD stock with a price target of $35. She highlighted the company’s growth potential from organic projects, particularly in the Permian Basin, expecting mid-single-digit growth in distributions.
– Scotto’s track record ranks her among the top analysts on TipRanks, with a profitable rating history and average return of 17.8%.
2. Goldman Sachs (GS):
– As a leading investment bank, GS recently reported strong first-quarter results driven by increased trading and investment banking revenue. They returned $2.43 billion to shareholders through buybacks and dividends, offering a dividend yield of 2.7%.
– Argus analyst Stephen Biggar upgraded Goldman Sachs to a buy rating with a price target of $465, citing the bank’s performance during an investment banking upturn and positive outlook fueled by capital market activities.
– Biggar’s ranking among analysts on TipRanks, profitable history, and average return of 11.8% add credibility to his bullish stance on GS stock.
3. Cisco Systems (CSCO):
– Cisco, a networking equipment maker, returned $2.8 billion to stockholders in the second quarter of fiscal 2024 through dividends and share repurchases. They announced a 3% dividend increase to 40 cents per share, offering a dividend yield of 3.3%.
– Bank of America Securities analyst Tal Liani upgraded Cisco to a buy rating with a raised price target, citing AI-related growth opportunities, security business expansion, and synergy from recent acquisitions as catalysts for future success.
– Liani’s positive outlook, particularly on Cisco’s share gains in AI buildouts and security business growth, positions Cisco as a compelling dividend stock for investors.
In conclusion, these three dividend stocks recommended by top Wall Street analysts present attractive opportunities for investors looking to capitalize on stability and potential returns in the current market landscape. Investors may consider these stocks for their dividend income potential and growth prospects.
