Even though the major averages have recently set new records, there are plenty of catalysts that could shake things up, including geopolitical tensions and the upcoming US presidential election.
Investors looking for some stability in their portfolio may want to consider high-quality dividend stocks, particularly those with a track record of steady income payments.
Analysts thoroughly research the fundamentals of companies and their ability to pay and grow dividends over the long term.
Here are three hotties dividend stockAccording to Wall Street’s top experts On TipRanks, a platform that ranks analysts based on their past performance.
Enbridge
energy infrastructure company Enbridge ,ENB) is this week’s first dividend-paying selection. The company moves about 30% of North America’s crude oil production and about 20% of the natural gas consumed in the US.
Enbridge has increased its dividend 29 years, Its dividend yield is 7.7%.
Following its recent investor day event, RBC Capital analysts robert quan Reiterated Buy rating on ENB stock. The analyst believes that recent developments, including regulatory approval of the acquisition of East Ohio Gas Company, will support the market’s confidence in the company’s ability to grow earnings.
It’s worth noting that East Ohio Gas is the largest of Enbridge’s three utilities (the other two are Questar Gas and Public Service Company of North Carolina). agreed to acquire From Dominion Energy.
“Dominion Utilities represents the next link in Enbridge’s series of development platforms,” Kwan said.
The analyst highlighted that the company has raised its growth targets to 2026 and now expects earnings before interest, taxes, depreciation and amortization to grow in the range of 7% to 9% from 2023 to 2026. This compares to the previous growth outlook of 4%. 6% from 2022 to 2025. Additionally, the company estimates that this forecast will enable it to increase its annual dividend.
Kwan is ranked 191st out of more than 8,700 analysts tracked by TipRanks. Their ratings have been successful 67% of the time, each of which generated an average return of 10.2%. (Look Enbridge hedge fund activity on TipRanks)
Bank of America
next is Bank of America ,BAC), one of the world’s leading banking institutions. The bank plans to return $12 billion to shareholders through dividends and share repurchases in 2023.
Bank Dividend declared 24 cents a share for the first quarter of 2024, payable March 29. BAC stock offers a dividend yield of 2.6%.
Recently, RBC Capital analyst gerard cassidy Reiterated a Buy rating on Bank of America with a price target of $39. Analysts are optimistic about the leadership of Chairman and CEO Brian Moynihan, who is helping the bank continue to generate improved profitability through a focus on expenses and solid credit underwriting principles.
Cassidy also noted that BAC has a solid balance sheet, with a common equity Tier 1 ratio of 11.8% and a supplemental leverage ratio of 6.1% as of December 31, 2023.
“Also, because of its strong capital position and PPNR (pre-tax, pre-provision revenues), it should be able to pay and raise its dividend during a recession,” Cassidy said.
The analyst highlighted the bank’s growing deposit market share, its dominant position in global capital markets and the stock’s attractive valuation. He expects the adoption of BAC’s mobile offerings will increase its profitability.
Cassidy is ranked 143rd out of more than 8,700 analysts tracked by TipRanks. Their ratings have been successful 62% of the time, with an average return of 14.9% each. (Look BAC technical analysis on TipRanks)
PepsiCo
This week’s third dividend pick is the snack foods and beverages giant PepsiCo ,Passion, Last month, the company reported better-than-expected fourth-quarter earnings, although its revenue declined and missed analysts’ expectations due to pressure on demand in its North American business.
Still, PepsiCo 7% hike announced Its annual dividend is $5.42 per share, effective with the dividend payable in June 2024. This increase marked 52Ra Consecutive years in which it boosted its dividend payments. PepsiCo’s current dividend yield is 2.9%.
Overall, PepsiCo targets a cash return of about $8.2 billion to shareholders in 2024, including a $7.2 billion dividend and $1 billion of share repurchases.
Morgan Stanley analysts on March 18 Dara Mohsenian Upgraded PepsiCo stock to Buy from Hold with a price target of $190. The analyst cited two reasons behind the stock’s earlier downgrade – valuation concerns and his opinion that the consensus organic sales growth (OSG) guidance seemed too high.
However, Mohsenian said, “Both of these issues are now over, and we will be aggressive buyers here before a powerful turnaround in H2 after PEP was basically down in Q1, and with PEP’s overdone valuation compression.” “Consensus and counterparts will return above the OSG.”
The analyst named PepsiCo the top pick, arguing that the market was not fully valuing the growth prospects of the company’s international business.
Mohsenian is ranked 383rd out of more than 8,700 analysts tracked by TipRanks. Analysts’ ratings have been profitable 68% of the time, with an average return of 9.2% each. (Look PepsiCo Stock Buyback on TipRanks)
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