A Citibank sign in front of one of the company’s offices in California.
Justin Sullivan | getty images
The ongoing volatility in the market is increasing the problems of investors, making it difficult for them to choose the right stock.
However, it is always better to have a long-term investment horizon and look for names that can enhance total returns with safe dividends and capital appreciation.
To that end, here are five fascinating dividend stockThat’s according to Wall Street’s top experts on TipRanks, a platform that ranks analysts based on their past performance.
Ares Capital
This week we take a first look at high-dividend yield stocks Ares Capital ,ARCC, Ares is a business development company that provides a variety of financing solutions to the middle market. The company recently reported a decline in third-quarter earnings due to higher interest rates and continued stagnant credit quality.
The company also declared a dividend of 48 cents per share for fourth quarterDue December 28th. ARCC offers a dividend yield of 9.8%.
Commenting on the third quarter results, RBC Capital analyst kenneth lee Noted that credit performance is still good, loans on non-accrual status declined slightly quarter-on-quarter to a very low 1.2% of the portfolio (on an amortized cost basis). That said, he believes non-collections could increase sometime next year.
The analyst highlighted other positives for Ares Capital, including portfolio diversification. Analysts also think the company’s dividend is strongly supported by its basic earnings per share and potential net profit.
Lee reiterated a buy rating on ARCC stock with a price target of $21, saying, “We still favor ARCC’s strong track record of managing risks through the cycle, well-supported dividend and massive profits.” Are.”
Lee is ranked 251st out of more than 8,500 analysts tracked by TipRanks. Their ratings have been profitable 57% of the time, each delivering an average return of 12.6%. (Look ARCC Stock Chart on TipRanks)
city group
Next on this week’s list is the banking giant city group ,C, In October, the bank reported better-than-expected results for the third quarter due to strength in its institutional clients and personal banking units. Citi recently announced a large-scale restructuring that will simplify its operating model and grow its business.
The bank announced Quarterly dividend of 53 cents per shareDue November 22nd. Citi’s dividend yield is 5%.
bmo capital analyst James Fotheringham noted that Citi’s Q3 results were driven by better-than-expected revenue (with total interest income coming in 5% above consensus), lower operating expenses and lower credit costs.
The analyst raised his core earnings per share estimates for 2023, 2024 and 2025 by 11%, 6% and 3%, respectively, reflecting lower-than-expected credit costs and a slower-than-expected decline in net interest margins. ,
Fotheringham raised his price target for the stock to $66 from $61 and reiterated a buy rating, saying, “C is our top pick among large-cap banks; shares at the biggest discount (by far) to TCE (total capital employed) Trade between money-center banks.”
Fotheringham is ranked 372nd among over 8,500 analysts on TipRanks. Additionally, 56% of their ratings have been profitable, with each delivering an average return of 9.4%. (Look Citigroup Blogger Opinion & Feelings on TipRanks)
McDonald’s
dividend aristocrat McDonald’s ,Delhi Municipal Corporation) recently reported its third quarter results. The fast-food chain beat Wall Street expectations, helped by higher prices that helped offset the weakness in traffic at U.S. restaurants.
MCD in early October 10% increase announced Its quarterly dividend is $1.67 per share, payable on Dec. 15. The company has increased its dividend for 47 consecutive years. The company pays a dividend yield of 2.5%.
BTIG Analyst peter salehRanked 667th among more than 8,500 analysts on TipRanks, he highlighted that MCD’s Q3 results led to sales and earnings growth coupled with cautious comments about US traffic. There was a slight decline in traffic due to reduced frequency of low-income customers and pressure on the “breakfast day”.
However, the analyst said MCD still has broad geographical strengths and is better positioned than its rivals. Looking ahead, Saleh expects the company to accelerate its US expansion next year, with his checks indicating that MCD has about 250 units in the pipeline. He also expects the company to focus more on value and digital engagement, as well as expand its automated order-taking technology in 2024.
“We view McDonald’s as one of the strongest restaurant concepts in the world that is in the middle stage of a multi-year sales recovery,” Saleh said.
Saleh reiterated a buy rating on McDonald’s stock with a price target of $300. His ratings have been successful 52% of the time, with each rating giving an average return of 7.9%. (Look McDonald’s financial statements on TipRanks)
AT&T
Now we are moving towards telecom giant AT&T ,Tea), which impressed investors by reporting strong subscriber growth in the third quarter thanks to promotions and phone upgrades. Additionally, the company raised its full-year free cash flow guidance to approximately $16.5 billion from $16 billion. AT&T offers an attractive dividend yield of 7%.
On October 26, Tigres Financial Partners analyst Evan Fenseth Reiterated a Buy rating on AT&T stock with a price target of $28. The analyst highlighted that the third quarter subscriber and cash flow growth marks a significant turnaround in AT&T’s business performance trends.
He said that while 2022 was a transitional year, the company’s revenue, cash flow and profitability will grow significantly in 2023 and beyond, with long-term growth driven by the ongoing 5G and broadband rollouts in business communications.
“AT&T will increasingly leverage its 5G high-speed fiber network to drive continued customer growth and expand its edge computing capabilities,” Feinseth said.
AT&T reduced its debt by more than $3 billion in the third quarter of 2023, which will reduce interest expense and drive more investment into its connectivity business, the analyst said. He believes the company will further optimize its dividend payout ratio so it can support ongoing investments while returning cash to shareholders.
Feinseth is ranked 453rd among over 8,500 analysts on TipRanks. Additionally, 54% of their ratings have been successful, with each delivering an average return of 8.2%. (Look AT&T hedge fund trading activity on TipRanks)
Target
Feinseth is also bullish on another dividend stock: the big-box retailer Target ,tgt, The analyst believes the near-term pressures create an attractive opportunity to buy the stock, as the company is well-positioned to drive revenue growth and profitability over the long term and further enhance shareholder value.
The analyst expects Target’s many strengths – including its loyal customer base, operational efficiencies and increased fulfillment capabilities – will help it overcome ongoing consumer disruptions, marketing errors and inventory shrinkage problems.
Feinseth also highlighted that the retailer is enhancing its product offering by adding several new products to its core product lines. It is also expanding its footprint by opening new stores while redesigning existing stores. (Look target insider trading activity on TipRanks)
He noted that TGT began its dividend in 1967 and has increased its dividend annually since 1971. June 2023After a massive 20% increase, the company raised its quarterly dividend by nearly 2% to $1.10 per share. June 2022 Up to $1.08 per share. TGT’s dividend yield is 3.9%.
Feinseth lowered TGT’s price target to $180 from $215 due to near-term challenges, but maintained a buy rating, saying, “Consumer spending trends include an increase in value focus, and easing of inflation pressures and input costs, “Business performance trends will accelerate again.”
(TagstoTranslate)Target Corp(T)AT&T Inc(T)McDonald’s Corp(T)Citigroup Inc(T)Ares Capital Corp(T)Investment Strategy(T)Markets(T)McDonald’s Corp(T)Target Corp(T)Citigroup Inc (T)Weekend Brief (T)Business News