One of the top picks for dividend-paying stocks is Kimberly-Clark (KMB), known for brands like Huggies and Kleenex. The company has a strong track record as a dividend king, having raised dividends for over 50 years. In the first quarter of 2024, Kimberly-Clark returned a significant amount to shareholders through dividends and share repurchases. The quarterly dividend of $1.22 per share translates to an attractive dividend yield of 3.5%. Recent analyst upgrades and price target increases reflect confidence in the company’s growth prospects. RBC Capital analyst Nik Modi’s upgrade to a buy rating and a higher price target emphasize Kimberly-Clark’s shift towards a growth-oriented enterprise under CEO Mike Hsu’s leadership. The company’s reorganization into three business units has helped reduce costs and improve speed to market.
Chord Energy (CHRD)
Another promising dividend stock is Chord Energy (CHRD), an oil and gas operator in the Williston Basin. After completing its acquisition of Enerplus, Chord Energy expects to strengthen its position in the region and deliver solid shareholder returns. Analysts like Mizuho’s William Janela have reaffirmed buy ratings and raised price targets for CHRD stock, citing the increased estimate for deal synergies and above-average cash returns. The combined company’s enhanced operational scale and attractive valuation relative to peers make Chord Energy a compelling investment opportunity.
Cisco Systems (CSCO)
Cisco Systems (CSCO) is a dividend-paying technology stock that offers an enticing dividend yield of 3.5%. The networking giant’s strong financial performance, highlighted by $2.9 billion returned to shareholders in the third quarter of fiscal 2024, underscores its commitment to rewarding investors. Analysts like Jefferies’ George Notter have reiterated buy ratings on Cisco stock, citing positive prospects following recent events like the acquisition of Splunk. Cisco’s long-term growth targets, including revenue growth and earnings per share (EPS) expansion, position the company as a stable and lucrative investment option. Notter’s confidence in Cisco’s growth potential is supported by the company’s consistent revenue growth over the past decade.
Dividend-paying stocks like Kimberly-Clark, Chord Energy, and Cisco Systems offer investors an opportunity to generate attractive returns while benefitting from dividend payouts. These companies’ strong fundamentals, growth prospects, and commitment to rewarding shareholders make them top picks in the market. By considering these dividend stocks in your investment portfolio, you can build a diversified and resilient strategy that can withstand market volatility and deliver long-term value.