Investors are always on the lookout for dividend-paying stocks that can enhance their portfolio returns and provide stability in uncertain markets. One way to identify such stocks is by tracking Wall Street analysts’ ratings. According to TipRanks, a platform that evaluates analysts based on their past performance, there are three dividend stocks that stand out in the current market environment.
One of the top picks is Northern Oil and Gas (NOG), a company that specializes in the acquisition, exploration, and production of oil and natural gas properties. NOG recently paid a dividend of 40 cents per share for the first quarter, representing an 18% year-over-year increase. The stock offers a dividend yield of 4.1%, making it an attractive option for income-seeking investors.
In addition to its dividend payments, NOG has also been enhancing shareholder returns through stock buybacks. The company repurchased $20 million worth of stock in Q1 2024, signaling its commitment to returning capital to shareholders. Furthermore, NOG recently announced a new partnership with SM Energy to acquire a 20% stake in the Uinta Basin assets of XCL Resources for $510 million. This strategic move is expected to drive additional growth and value for NOG shareholders.
RBC Capital analyst Scott Hanold has reiterated a buy rating on NOG stock, with a price target of $46. Hanold believes that the partnership with SM Energy opens up new opportunities for NOG in the Uinta Basin, similar to its successful strategy in other regions. He expects the deal to be accretive to earnings and cash flow, potentially leading to an increase in the company’s base dividend. Hanold estimates a 10% to 15% dividend increase in 2025, reflecting his bullish outlook on NOG’s future prospects.
JPMorgan Chase (JPM)
Another dividend stock that has caught the attention of Wall Street analysts is JPMorgan Chase (JPM), the largest U.S. bank by assets. JPM recently announced plans to increase its dividend by 9% to $1.25 per share for the third quarter of 2024, following a previous hike earlier in the year. The bank currently offers a dividend yield of 2.2%, making it an attractive option for income-focused investors.
In addition to its dividend increases, JPM has also authorized a new share repurchase program of $30 billion to further enhance shareholder returns. RBC Capital analyst Gerard Cassidy has reaffirmed a buy rating on JPM stock, with a price target of $211. Cassidy is bullish on JPM’s prospects, citing its strong management team, diverse business lines, and robust balance sheet as key strengths.
Cassidy believes that JPM’s consumer and capital markets businesses are well-positioned to drive future growth and profitability, thanks to their competitive advantages in the industry. He also highlights the bank’s well-diversified revenue streams, which provide stability and resilience in various market conditions. Cassidy’s positive outlook on JPM reflects his confidence in the bank’s ability to deliver value to shareholders over the long term.
Walmart (WMT)
Lastly, big-box retailer Walmart (WMT) is another dividend stock that Wall Street analysts are bullish on. Walmart recently increased its dividend by 9% to 83 cents per share, marking its 51st consecutive annual dividend hike. The company has a payout ratio of 37.5%, leaving room for further dividend growth in the future.
Analyst Corey Tarlowe from Jefferies has reiterated a buy rating on WMT stock, with a price target of $77. Tarlowe sees Walmart as a top pick for his firm, citing the company’s early initiatives in artificial intelligence and automation as key drivers of future growth. He believes that AI and automation could double Walmart’s operating income by fiscal year 2029, unlocking significant value for shareholders.
Tarlowe points to Walmart’s strategic investments in AI technologies, such as a partnership with Fox Robotics for autonomous forklifts, as evidence of the company’s forward-thinking approach. He also highlights Walmart’s focus on enhancing its omnichannel capabilities and services to capture a larger share of customer spending. Tarlowe’s optimistic outlook on Walmart reflects his confidence in the company’s ability to innovate and adapt to changing consumer preferences.
Dividend-paying stocks like Northern Oil and Gas, JPMorgan Chase, and Walmart offer investors attractive opportunities to generate income and grow their wealth over time. By following the recommendations of top Wall Street analysts, investors can make informed decisions about which dividend stocks to add to their portfolios for long-term success.