When it comes to navigating the uncertainties of the stock market, finding reliable sources of income can be crucial for investors looking to protect their portfolios during volatile times. One way to achieve this is by investing in dividend-paying stocks, as they can provide a steady stream of income regardless of market conditions. According to Wall Street experts on TipRanks, Chord Energy (CHRD) is one such stock that stands out for its dividend potential.
Chord Energy operates in the oil and gas sector, specifically in the Williston Basin. The company recently declared a base-plus-variable cash dividend of $3.25 per share, making it an attractive option for income-seeking investors. Analyst Gabriele Sorbara from Siebert Williams Shank initiated coverage of Chord Energy with a buy rating and a price target of $262, citing the company’s attractive valuation and capital returns strategy.
Sorbara highlighted Chord Energy’s commitment to returning more than 75% of free cash flow to shareholders through dividends and buybacks. The analyst projected capital returns of $778.8 million and $1.15 billion in 2024 and 2025, respectively, with above-average yields compared to its peers. By focusing on capital efficiencies and acquisition synergies, Chord Energy is poised to deliver strong returns for investors. Sorbara’s track record as an analyst ranks him at No. 391 out of 8,800 analysts on TipRanks, with a profitable rating of 52% and an average return of 12.4%.
Energy Transfer (ET) is a master limited partnership (MLP) that operates over 125,000 miles of pipeline and related infrastructure. With a focus on midstream energy, ET offers investors a diversified income stream through its quarterly cash distributions. Analyst Gabriel Moreen from Mizuho sees ET as a top pick in the midstream sector, emphasizing the company’s solid free cash flow outlook and leverage in the Permian basin.
Moreen raised the price target for ET to $19 and reiterated a buy rating, noting that the company has outperformed its peers in 2024. By providing a detailed capital allocation framework, ET could further enhance its credibility with investors and capitalize on its healthy free cash flow yield. Despite the stock’s discounted valuation, Moreen sees significant upside potential for equity returns, making ET an attractive choice for income-focused investors. Moreen ranks at No. 183 on TipRanks, with a success rate of 79% and an average return of 10.3%.
For investors seeking stability and consistent income, Coca-Cola (KO) stands out as a dividend king with a track record of 62 consecutive years of dividend increases. The company recently raised its quarterly dividend by 5.4% to $0.485 per share, offering a dividend yield of 3.1% to investors. Despite challenges in the beverage industry, Coca-Cola reported better-than-expected first-quarter results and raised its organic revenue growth forecast.
RBC Capital analyst Nik Modi reiterated a buy rating on KO stock with a price target of $65, citing the company’s strong performance and resilience in the face of currency headwinds. Modi believes that Coca-Cola’s restructuring efforts and organizational changes will drive growth and market expansion. With a focus on international markets, Coca-Cola is well-positioned to benefit from a weaker U.S. dollar and continue its momentum in revenue and earnings. Modi ranks at No. 620 on TipRanks, with a successful rating of 60% and an average return of 6.5%.
Diversifying your portfolio with dividend-paying stocks like Chord Energy, Energy Transfer, and Coca-Cola can provide stability and income opportunities in volatile market conditions. By following the recommendations of Wall Street experts, investors can make informed decisions that align with their income goals and long-term investment strategies.