Top Wall Street analysts pick these 3 dividend stocks for the long haul

Top Wall Street analysts pick these 3 dividend stocks for the long haul


A robust fourth-quarter earnings season is underway, and it is time for dividend-paying corporations to shine.

Resilient dividend-paying corporations can provide long-term development potential and regular revenue. Investors ought to think about the perception of prime Wall Street execs as they hunt for dividend stocks with stable fundamentals.

Here are three enticing dividend stocks, in line with Wall Street’s top experts on TipRanks, a platform that ranks analysts primarily based on their previous efficiency.

Verizon Communications

First up is telecom big Verizon Communications (VZ), which not too long ago reported its fourth-quarter outcomes and impressed buyers with the strong leap in wi-fi postpaid telephone subscriber additions.

In 2023, the firm raised its dividend for the seventeenth consecutive 12 months. Verizon’s quarterly dividend of $0.665 per share (annualized dividend of $2.66), displays a yield of 6.7%.

Following Verizon’s This fall outcomes, Tigress Financial analyst Ivan Feinseth reiterated a purchase score on the inventory and elevated the worth goal to $50 per share from $45. The analyst famous that the firm delivered robust subscriber and money stream development in 2023, with additional acceleration anticipated this 12 months.

“Ongoing 5G and stuck wi-fi broadband momentum and elevated providers choices mixed with working efficiencies and margin enchancment will drive a reacceleration in money stream development and enhancing Business Performance developments,” stated Feinseth.

The analyst thinks that Verizon’s stable stability sheet and money stream assist the firm’s ongoing investments in spectrum growth and different development initiatives in addition to dividend hikes. Overall, he thinks that the firm presents a compelling funding alternative, given its excessive dividend yield and industry-leading place that permits it to learn from long-term telecom developments.    

Feinseth ranks No. 214 amongst greater than 8,700 analysts tracked by TipRanks. His rankings have been worthwhile 61% of the time, with every delivering a median return of 11.7%. (See Verizon Hedge Fund Activity on TipRanks)

Enterprise Products Partners

This week’s second dividend pick is Enterprise Products Partners (EPD), a grasp restricted partnership that gives midstream vitality providers. Last month, the firm announced a quarterly cash distribution of $0.515 per unit for the fourth quarter of 2023, to be paid on Feb. 14. This quarterly distribution marks a 5.1% year-over-year improve and displays a yield of almost 8%.

In response to EPD’s fourth-quarter outcomes, Stifel analyst Selman Akyol reaffirmed a purchase score on the inventory and raised the worth goal to $36 per share from $35. The analyst acknowledged that This fall 2023 outcomes barely surpassed his expectations. He elevated his 2024 earnings earlier than curiosity, tax, depreciation and amortization estimate by greater than 2%, primarily as a result of the firm’s pure gasoline liquids pipeline section.

Further, Akyol anticipates that the momentum in EPD’s pipeline and export throughputs will proceed in the close to time period. The analyst additionally identified that EPD has elevated its distributions for 25 years. He expects distributions to be the main mode of returning capital to unitholders, with buybacks projected to be opportunistic.

Explaining his funding stance, Akyol stated, “We imagine Enterprise has one in every of the strongest monetary profiles inside the midstream sector, and may face up to turbulence from a risky macro setting.”

Akyol holds the 695th place amongst greater than 8,700 analysts tracked by TipRanks. His rankings have been worthwhile 64% of the time, with every delivering a median return of 5%. (See EPD Insider Trading Activity on TipRanks)

MPLX LP

Our third dividend pick is one other midstream vitality participant, MPLX LP (MPLX). Last month, the grasp restricted partnership announced a quarterly distribution of 85 cents per widespread unit for the fourth quarter of 2023, payable on Feb. 14. MPLX presents a dividend yield of 9%.

Based on the not too long ago introduced fourth-quarter outcomes, RBC Capital analyst Elvira Scotto reiterated a purchase score on MPLX inventory and elevated the worth goal to $46 per share from $45. The analyst famous that the firm’s This fall 2023 adjusted EBITDA surpassed consensus expectations by 4%, because of elevated product volumes, larger pipeline charges in the logistics and storage section, and better processing volumes in the gathering and processing unit.

Given the excessive yield provided by the inventory, Scotto thinks that MPLX stays one in every of the most engaging revenue performs in the large-cap MLP area. The analyst expects a money distribution of $3.57 per unit in 2024 and $3.84 per unit in 2025. That’s up from $3.40 in 2023.   

Scotto thinks that “future money stream era along side the monetary flexibility offered by lowering leverage and satisfactory distribution protection can drive incremental capital returns to buyers over time.”    

Scotto ranks No. 83 amongst greater than 8,700 analysts tracked by TipRanks. Her rankings have been worthwhile 64% of the time, with every delivering a median return of 17.8%. (See MPLX Technical Analysis on TipRanks)



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