Top 5 Dividend Stocks: Wall Street’s Experts Recommend These Stable Investments
Attractive Dividend Stocks for Stability in a Volatile Market
The recent volatility in the market has led investors to seek stability, making dividend-paying stocks more appealing. Before adding these stocks to their portfolio, investors should assess the company’s fundamentals and its ability to sustain dividend payments in the long run. Wall Street’s top experts on TipRanks, a platform that ranks analysts based on their past performance, have identified five attractive dividend stocks.
Civitas Resources (CIVI) is an oil and gas producer focused on assets in the Denver-Julesburg and Permian Basins. The company recently paid a dividend of $1.74 per share, which included a quarterly base dividend of 50 cents per share and a variable dividend of $1.24. Civitas has announced an agreement to acquire oil-producing assets in the Midland Basin of West Texas, which is expected to boost its free cash flow per share by 5% in 2024. Analysts have a positive view on this acquisition and have raised their price target for CIVI.
Bristol Myers Squibb
Biopharmaceutical company Bristol Myers Squibb (BMY) recently announced a quarterly dividend of 57 cents per share, marking a year-over-year increase of 5.6%. The company has also entered into an agreement to acquire biotechnology company Mirati Therapeutics, which is expected to strengthen its oncology portfolio. The acquisition will provide commercial and pipeline support to Bristol Myers Squibb.
Chesapeake Energy (CHK), an oil and gas exploration and production company, has returned about $515 million to shareholders year-to-date through dividends and share repurchases. The company recently increased its quarterly base dividend per share by 4.5%. Chesapeake is focused on maintaining operational flexibility based on gas prices and has a strong balance sheet and capital returns.
EOG Resources (EOG) is committed to returning a minimum of 60% of annual free cash flow to shareholders through dividends and share repurchases. The company has a robust free cash flow, supporting attractive shareholder returns. Analysts expect a potential special dividend and a hike in base dividend as EOG continues to generate strong free cash flow.
Cisco Systems (CSCO), a computer networking giant, has consistently increased its dividend for the past 12 years. The company offers a dividend yield of 2.9%. Analysts are optimistic about Cisco’s long-term prospects, as it benefits from higher spending on information technology and the recently announced acquisition of cybersecurity firm Splunk.
These dividend-paying stocks offer stability in a volatile market. Investors should carefully evaluate the fundamentals and long-term sustainability of these companies before adding them to their portfolio.