Macroeconomic woes and geopolitical tensions are weighing on investor sentiment, shaking up major averages last week.
Investors looking for stability may turn to dividend-paying stocks.
They can follow the recommendations of Wall Street analysts, who rigorously analyze the funds of dividend-paying corporations and assess their ability to extend dividends in the long term.
Here are three attractive ones dividend stocksAccording to The best experts from Wall Street on TipRanks, a platform that rates analysts based on their past performance.
Enterprise Product Partners
The first dividend stock this week is (EPD), mid-tier energy services provider. The limited partnership has increased its money distribution for 25 consecutive years, at a compound annual growth rate of seven%.
On April 5, Enterprise Products announced quarterly money distribution of $0.515 per unit, payable on May 14. This payment reflects a 5.1% year-over-year increase. EPD shares offer a sexy dividend yield of seven.1%.
An RBC Capital analyst after the corporate’s call to supply updated information to investors, which took place earlier this month Elvira Scotto maintained a buy rating for EPD shares with a goal price of USD 35. The analyst said the decision reinforced her view that the corporate is well-positioned to profit from organic growth projects expected to return online by 2026.
Scotto added that the corporate’s organic designs (resembling Menton West 2 natural gas processing plants in Delaware) are mainly focused on the Permian Basin, where regular growth is predicted for a minimum of the following 10 years.
The analyst is confident that EPD will have the opportunity to support growth investments because of its strong operating base and balance sheet. Additionally, he expects mid-single-digit growth in the corporate’s distribution.
“EPD continues to comfortably return 55-60% of CFO adjusted (operating cash flow) to investors through distributions and repurchases,” Scotto said.
Scotto is ranked 84th amongst over 8,700 analysts tracked by TipRanks. Its rankings were profitable 64% of the time, with each providing a median return of 17.8%. (See EPD technical evaluation in TipRanks)
Goldman Sachs
Lets go to (GS), certainly one of the leading investment banks within the U.S. The bank recently announced better-than-expected first-quarter results, driven by growth in trading and investment banking revenues. A rebound in capital market activity helped the corporate deliver solid results.
Goldman Sachs returned in the primary quarter Capital price $2.43 billion shareholders through a $1.5 billion share repurchase and a $929 million dividend. The bank declared a dividend of $2.75 per share, payable on June 27. GS shares offer a dividend yield of two.7%
In response to the impressive first quarter print, the Argus analyst Stephen Biggar upgraded Goldman Sachs to purchase from hold with a $465 price goal, saying the outcomes “demonstrated the significant strength of the Goldman franchise during the investment banking recovery.”
While there have been some signs of a false rebound within the investment banking space in 2023, the analyst believes the present recovery appears to have the strength to sustain itself. His optimism is supported by encouraging sequential improvement in equity and debt underwriting. His additional motivation is the high annual increase in the worth of mergers and acquisitions announced across the industry in the primary quarter.
Biggar expects these aspects to translate into improved revenues within the second half of 2024. He highlighted data from the Securities Industry and Financial Markets Association, which shows a triple-digit year-on-year increase in capital formation in the primary quarter of 2024. In particular, the variety of IPO issuances increased in the primary quarter by 239%, while the variety of secondary issues increased by 110%.
Biggar is ranked 603rd amongst over 8,700 analysts tracked by TipRanks. Its rankings were profitable 60% of the time, with each providing a median return of 11.8%. (See Buyout of Goldman Sachs shares in TipRanks)
Cisco systems
Finally, let’s take a look at (CSCO), manufacturer of network equipment. During the second quarter of fiscal 2024, the corporate returned a complete of $2.8 billion to shareholders through share repurchases and a dividend of 39 cents per share.
Cisco announced a dividend increase of roughly 3% to 40 cents per share, starting payout in April 2024. The company’s stock has a dividend yield of 3.3%.
April 15, Bank of America Securities analyst Talk to Liani upgraded Cisco Systems to carry buy and raised its price goal to $60 from $55, citing valuation and three catalysts: AI positive tailwinds, security industry growth and synergies with recently accomplished Splunk acquisition.
(*3*) Liani said.
While the analyst agrees that the following two quarters should be under pressure, he says the downward trend is fully reflected in Wall Street expectations. He believes management’s guidance is appropriately conservative.
Meanwhile, Liani expects growth in the corporate’s security business to speed up, driven by stabilization within the firewall space and recently launched products.
Liani is ranked 532nd amongst over 8,700 analysts tracked by TipRanks. His assessments were successful 55% of the time, with each delivering a median return of 10.9%. (See Cisco ownership structure in TipRanks)
