Investing in dividend-paying stocks is a common strategy for many investors looking to boost their portfolio returns while seeking stability in volatile markets. By following the recommendations of top Wall Street analysts, investors can identify dividend stocks with promising growth potential, leading to higher earnings and increased cash flows to support dividends. In this article, we will explore three attractive dividend stocks recommended by experts on TipRanks, a platform that evaluates analysts based on their past performance.
Northern Oil and Gas (NOG) is a company engaged in the acquisition, exploration, and production of oil and natural gas properties, primarily in the Williston, Permian, and Appalachian basins. In the first quarter, NOG paid a dividend of 40 cents per share, marking an 18% year-over-year increase and offering a dividend yield of 4.1%. Additionally, the company implemented stock buybacks worth $20 million in Q1 of 2024. A recent development includes NOG’s agreement to acquire a 20% undivided stake in Uinta Basin assets from XCL Resources for $510 million, in collaboration with SM Energy. RBC Capital analyst Scott Hanold reiterated a buy rating on NOG stock with a price target of $46, indicating further expansion opportunities in the Uinta Basin. The analyst raised his earnings per share and cash flow estimates, anticipating a 10% to 15% increase in dividends by 2025.
JPMorgan Chase (JPM), the largest U.S. bank by assets, announced a 9% increase in its dividend to $1.25 per share for the third quarter of 2024. With a dividend yield of 2.2%, JPM highlighted this as the second dividend hike of the year. Furthermore, the bank authorized a new share repurchase program of $30 billion to enhance shareholder returns. RBC Capital analyst Gerard Cassidy reaffirmed a buy rating on JPM stock with a price target of $211, citing a strong management team and a diverse business model across multiple sectors. The analyst expects JPM to gain market share and increase profitability, driven by its consumer and capital markets businesses.
Retail giant Walmart (WMT) raised its dividend by 9% to 83 cents per share, marking its 51st consecutive annual dividend increase. In the fiscal first quarter, WMT returned $2.73 billion to shareholders through dividends and share repurchases. With a payout ratio of 37.5%, the company foresees potential growth in dividends. Jefferies analyst Corey Tarlowe maintained a buy rating on WMT with a price target of $77, emphasizing the company’s artificial intelligence and automation initiatives. Tarlowe believes that AI and automation could double Walmart’s operating income by fiscal year 2029, driven by efficiency improvements and technological advancements.
Investing in dividend stocks recommended by top Wall Street experts can be a lucrative strategy for investors seeking to enhance their portfolio returns. Companies like Northern Oil and Gas, JPMorgan Chase, and Walmart offer attractive dividend yields and growth prospects, supported by favorable analyst ratings and future potential for increased dividends. By carefully analyzing the recommendations of industry experts, investors can make informed decisions to optimize their investment portfolios for long-term success.