Top Dividend Stocks to Enhance Portfolio Returns, According to Wall Street Analysts
As investors grapple with a spike in bond yields and a tumultuous stock market, dividend-paying stocks have become increasingly attractive. Wall Street's top experts on TipRanks have identified five dividend stocks that have the potential to boost portfolio returns.
Exxon Mobil (XOM): A Dividend Aristocrat with Solid Earnings
Exxon Mobil, the first stock on the list, is a dividend aristocrat that offers a yield of 3.4%. The company's 40th consecutive year of annual dividend growth, marked by a 3.4% hike last year, demonstrates its commitment to rewarding shareholders. With solid earnings and cash flows, Exxon's dividends are well-supported. Mizuho analyst Nitin Kumar, who ranks No. 67 among more than 8,500 analysts tracked by TipRanks, reiterated a buy rating on Exxon. He believes the company is on track to meet its target of boosting its product solutions earnings by $10 billion by 2027. Kumar expects strategic projects, such as the Beaumont crude expansion and chemical expansions at Baytown, to contribute to Exxon's improvement in earnings.
Coterra Energy (CTRA): Promising Returns in the Oil and Gas Sector
Coterra Energy, an oil and gas exploration and production company, has attracted the attention of analyst Nitin Kumar. The company recently increased its annual base dividend by 33% and has a shareholder return strategy that focuses on distributing 50% of its free cash flow. Kumar considers Coterra Energy his top pick, emphasizing the company's ability to deliver solid returns on investment. With a flexible asset base and capital allocation strategy, Coterra Energy is well-positioned to outperform its three-year plan for oil growth.
Brookfield Infrastructure (BIP): Operating Assets in Key Sectors
Brookfield Infrastructure operates assets in utilities, transport, midstream, and data sectors. The company paid a quarterly dividend reflecting a 6% year-over-year increase in its distribution. With a dividend yield of 5.5%, Brookfield Infrastructure offers an attractive opportunity for investors. RBC Capital analyst Robert Kwan, ranking 194th among over 8,500 analysts, believes that the company's targeted growth in funds from operations per unit, driven by its organic capital backlog, sets it up for enhanced returns.
American Electric Power (AEP): A Resilient Utility Stock
Utility stock American Electric Power (AEP) remains a top pick for analyst Shelby Tucker. Despite a high-interest environment, Tucker reaffirms a buy rating on the stock. AEP's $40 billion regulated capital spending plan, focusing on transmission deployment, provides resiliency against macro challenges and cost inflation. The company's investments in regulated renewable energy and rapid decarbonization of its generation fleet further contribute to its potential for growth.
In conclusion, these dividend stocks identified by Wall Street analysts offer promising opportunities to enhance portfolio returns. Exxon Mobil, Coterra Energy, Brookfield Infrastructure, and American Electric Power present compelling investment options in various sectors. Investors seeking stable income and potential growth should consider these stocks as part of their portfolio strategy.
Dividend Stocks: A New Business's Key to Portfolio Growth?
In the face of a tumultuous stock market and rising bond yields, dividend-paying stocks are emerging as an attractive investment option. Wall Street experts on TipRanks have identified several such stocks that could potentially boost portfolio returns, offering insights that new businesses could leverage.
Exxon Mobil (XOM): Solid Earnings and Consistent Growth
Exxon Mobil stands out as a dividend aristocrat, offering a yield of 3.4%. The energy giant's commitment to shareholders is evident in its 40th consecutive year of annual dividend growth. Analyst Nitin Kumar believes Exxon is well on its way to boosting its product solutions earnings by $10 billion by 2027, a promising prospect for new businesses looking to invest.
Coterra Energy (CTRA): A Top Pick in the Oil and Gas Sector
Coterra Energy, an oil and gas exploration and production company, also comes highly recommended by Kumar. The company's shareholder return strategy, which focuses on distributing 50% of its free cash flow, coupled with its flexible asset base and capital allocation strategy, positions it to outperform its three-year plan for oil growth.
Brookfield Infrastructure (BIP): A Potential Goldmine in Key Sectors
Brookfield Infrastructure, operating in utilities, transport, midstream, and data sectors, offers an attractive dividend yield of 5.5%. Analyst Robert Kwan believes the company's targeted growth in funds from operations per unit sets it up for enhanced returns, a promising opportunity for new businesses.
American Electric Power (AEP): A Robust Utility Stock
Despite a high-interest environment, American Electric Power remains a top pick for analyst Shelby Tucker. The company's $40 billion regulated capital spending plan and investments in regulated renewable energy make it a resilient choice in the face of macro challenges and cost inflation.
In essence, these dividend stocks present compelling investment options in various sectors for new businesses seeking stable income and potential growth.
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