In the face of macroeconomic challenges and geopolitical tensions, investors are constantly seeking stability in their portfolios. One way to achieve this is by turning to dividend-paying stocks, which provide a steady stream of income regardless of market fluctuations. According to Wall Street analysts on TipRanks, Enterprise Products Partners (EPD) is considered as one of the top dividend stocks to invest in. The midstream energy services provider has a strong track record of increasing its cash distribution for 25 consecutive years at a compound annual growth rate of 7%. With a recently announced quarterly cash distribution of $0.515 per unit, payable on May 14, EPD offers an attractive dividend yield of 7.1%. Analysts like Elvira Scotto from RBC Capital are bullish on the company’s growth prospects, citing its organic projects in the Permian Basin and a strong balance sheet. Scotto’s ratings have been profitable 64% of the time, with an average return of 17.8%.
Another dividend stock that investors can consider is Goldman Sachs (GS), a leading investment bank in the U.S. Despite the market volatility, Goldman Sachs reported better-than-expected first-quarter results, driven by increased trading and investment banking revenue. The bank returned $2.43 billion to shareholders through share repurchases and dividends in the first quarter. With a declared dividend of $2.75 per share, payable on June 27, GS offers a dividend yield of 2.7%. Analysts like Stephen Biggar from Argus are optimistic about the bank’s future performance, especially in the investment banking space. Biggar’s ratings have been profitable 60% of the time, with an average return of 11.8%. He believes that the current recovery in the market is sustainable, supported by positive trends in equity and debt underwriting, as well as M&A deal value growth.
Lastly, Cisco Systems (CSCO) is another dividend stock that investors may find attractive. As a networking equipment maker, Cisco returned $2.8 billion to stockholders in the second quarter of fiscal 2024 through share repurchases and dividends. With a dividend yield of 3.3%, the company announced a 3% increase in its dividend to 40 cents per share. Analysts like Tal Liani from Bank of America Securities are bullish on Cisco’s future growth, citing three key catalysts: AI-related tailwinds, growth in the security business, and synergies from recent acquisitions. Liani’s ratings have been successful 55% of the time, with an average return of 10.9%. He believes that Cisco’s share gains in Ethernet-based AI buildouts of hyperscalers will drive growth in the networking segment.
Amidst market turbulence and uncertainty, dividend-paying stocks provide a sense of stability and income for investors. Companies like Enterprise Products Partners, Goldman Sachs, and Cisco Systems have shown resilience and growth potential in challenging times. By following the recommendations of top Wall Street analysts, investors can make informed decisions about including dividend stocks in their portfolios for long-term wealth accumulation.