When it comes to investing, dividend-paying stocks have always been a popular choice among investors looking for consistent returns. Not only can these stocks enhance portfolio returns, but they also provide a sense of stability, especially in turbulent markets. One way investors can identify promising dividend-paying companies is by following the recommendations of Wall Street analysts who have a track record of success. Here are three dividend stocks that have been highlighted by some of the top experts on Wall Street, according to 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, showing an 18% year-over-year increase and offering a dividend yield of 4.1%. In addition to dividends, the company has also allocated $20 million for stock buybacks in Q1 2024.
One notable development for NOG is its recent agreement to acquire a 20% stake in the Uinta Basin assets of XCL Resources for $510 million, in partnership with SM Energy. Following this news, RBC Capital analyst Scott Hanold reiterated a buy rating on NOG stock with a price target of $46. He mentioned the potential for further expansion in the Uinta Basin through additional deals, demonstrating NOG’s strategy of collaboration with high-quality operators. Hanold’s optimistic outlook led him to increase his earnings per share and cash flow estimates for 2025, anticipating a significant boost from the XCL deal. He even predicted a potential dividend increase of 10% to 15% in 2025.
As the largest bank in the U.S. by assets, JPMorgan Chase (JPM) has consistently rewarded its shareholders with a strong dividend track record. The bank recently announced plans to raise its dividend by 9% to $1.25 per share for the third quarter of 2024, offering a dividend yield of 2.2%. This increase marks the second dividend raise this year, following a hike to $1.15 per share in March. Moreover, JPM authorized a share repurchase program of $30 billion to further enhance shareholder returns.
RBC Capital analyst Gerard Cassidy reaffirmed a buy rating on JPM stock with a price target of $211, citing the company’s strong management team and diversified business lines. Cassidy emphasized JPM’s well-balanced revenue streams coming from various sectors, which contribute to its overall profitability. With a bullish investment thesis, he believes JPM can gain market share and drive enhanced profitability across its business segments.
Walmart (WMT) is a retail giant that has been a favorite among dividend investors for its consistent dividend increases. Earlier this year, the company raised its dividend by 9% to 83 cents per share, marking its 51st consecutive annual dividend hike. In the first quarter, WMT returned $2.73 billion to shareholders through dividends and share repurchases. With a payout ratio of 37.5%, Walmart sees potential for further dividend growth.
Jefferies analyst Corey Tarlowe maintained a buy rating on WMT with a price target of $77, pointing out the company’s focus on artificial intelligence and automation. Tarlowe believes that AI and automation initiatives could substantially increase Walmart’s operating income by fiscal year 2029, driven by efficiencies and technological advancements. With strategic investments in AI technologies and partnerships, Walmart aims to enhance its omnichannel capabilities and customer services, securing a larger share of customer spending in the long run.
These three dividend stocks offer attractive opportunities for investors seeking stable returns and potential growth in their portfolios. By considering the insights and recommendations of top Wall Street analysts, investors can make informed decisions when adding these stocks to their investment portfolios.