Investors seeking to enhance their portfolio returns often turn to dividend-paying stocks for stability and income, especially during uncertain market conditions. By selecting stocks from companies that not only pay dividends but also have strong growth prospects, investors can potentially benefit from higher earnings and cash flows supporting increased dividends. One popular platform for tracking Wall Street analysts’ ratings is TipRanks, where experts provide insights into promising dividend stocks.

Northern Oil and Gas (NOG) is a company involved in acquiring, exploring, and producing oil and natural gas properties in various basins, including the Williston, Permian, and Appalachian regions. In the first quarter of 2024, NOG paid a dividend of 40 cents per share, marking an 18% year-over-year increase and offering a dividend yield of 4.1%. Additionally, the company allocated $20 million for stock buybacks during the same period. A recent announcement revealed NOG’s agreement to acquire a 20% stake in XCL Resources’ Uinta Basin assets for $510 million, in partnership with SM Energy.

Analyst Scott Hanold from RBC Capital expressed optimism about NOG’s growth prospects, reiterating a buy rating on the stock with a price target of $46. He highlighted the potential for further expansion in the Uinta Basin through additional deals, in line with NOG’s strategy of collaborating with high-quality operators like SM Energy. Hanold raised his earnings per share and cash flow per share estimates for 2025 by 11% to 12%, anticipating increased free cash flow due to the XCL deal’s accretive nature. He suggested the possibility of NOG raising its dividend by 10% to 15% in 2025.

As the largest U.S. bank by assets, JPMorgan Chase (JPM) offers investors a dividend yield of 2.2% and recently announced plans to raise its dividend by 9% to $1.25 per share for the third quarter of 2024. This marks the second dividend increase this year, following a rise to $1.15 per share in March. In addition to dividend hikes, JPM’s board authorized a $30 billion share repurchase program to enhance shareholder returns.

Analyst Gerard Cassidy from RBC Capital reiterated a buy rating on JPM stock, with a price target of $211. He emphasized the company’s strong management team, diverse business lines, and robust balance sheet as key drivers of future profitability. Cassidy highlighted JPM’s strategic positioning in various sectors, including Consumer and Community banking, Corporate and Investment Banking, Asset and Wealth Management, Commercial Banking, and Corporate operations.

Walmart (WMT)

Walmart (WMT) increased its dividend by 9% earlier this year, reaching 83 cents per share and extending its streak of annual dividend hikes to 51 consecutive years. In the first quarter of the fiscal year, Walmart returned $2.73 billion to shareholders through dividends and share repurchases, signaling its commitment to rewarding investors. With a payout ratio of 37.5%, the company anticipates further dividend growth in the future.

Analyst Corey Tarlowe from Jefferies maintained a buy rating on WMT, setting a price target of $77 and highlighting the company’s initiatives in artificial intelligence (AI) and automation. Tarlowe believes that Walmart’s investment in AI and automation could double its operating income by fiscal year 2029, generating over $20 billion in incremental earnings before interest and taxes. The analyst pointed out specific AI developments, such as the partnership with Fox Robotics and the deployment of automated receipt verification arches at Sam’s Club, as part of Walmart’s AI strategy.

These three dividend stocks – Northern Oil and Gas, JPMorgan Chase, and Walmart – present compelling opportunities for investors looking to benefit from both steady income and potential growth in their portfolios. By staying informed about analysts’ recommendations and the companies’ strategic moves, investors can make well-informed decisions to maximize their returns in 2024 and beyond.

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