Investors seeking a steady stream of income may look to attractive dividend stocks to enhance their portfolios. Among the plethora of dividend-paying companies, selecting the right stocks can be a daunting task for investors. Seeking guidance from top analysts can provide valuable insights to help make informed decisions. Wall Street’s top experts on TipRanks, a platform that ranks analysts based on their past performance, have identified three appealing dividend stocks. One such stock is Energy Transfer (ET), a master limited partnership (MLP) operating over 125,000 miles of pipeline and related energy infrastructure. Earlier this year, Energy Transfer declared a quarterly cash distribution of $0.3150 per common unit for Q4 2023, marking a 3.3% year-over-year increase. With an annualized distribution per unit of $1.26, ET stock presents an attractive yield of 8.4%.
Garmin (GRMN)
Garmin (GRMN), a manufacturer of navigation devices, impressed investors with better-than-expected fourth-quarter earnings and strong guidance, driven by the robust performance of its auto and fitness segments. The company announced a quarterly dividend of 73 cents per share, payable in March, with a proposed dividend increase of 2.7% to 75 cents per share at the upcoming annual meeting in June. Additionally, Garmin unveiled a new share repurchase program of up to $300 million through December 2026. With a dividend yield of 2.1%, GRMN stock appeals to income-seeking investors. Tigress Financial analyst Ivan Feinseth reiterated a buy rating on GRMN stock and raised the price target to $175 from $165. Feinseth emphasized Garmin’s revenue growth in Q4 2023 and for the full year, driven by strong demand for its advanced smart wearables and new product launches, as well as momentum in the auto OEM business. The analyst highlighted Garmin’s strong financial position and cash flow, enabling investments in new products, strategic acquisitions, and increased shareholder returns.
Target (TGT)
Another attractive dividend pick recommended by Wall Street analysts is Target (TGT), which exceeded fourth-quarter revenue and earnings expectations despite macroeconomic challenges impacting the retail sector. Target’s quarterly dividend of $1.10 per share reflects a 1.9% year-over-year increase, offering a dividend yield of 2.6%. With a track record of increasing dividends for 52 consecutive years, Target appeals to income-focused investors. Jefferies analyst Corey Tarlowe reaffirmed a buy rating on TGT stock and raised the price target to $195 from $170 following impressive Q4 results. Tarlowe noted that Target’s revenue growth in Q4 was driven by a 10% increase in other revenue, primarily from advertising. The analyst anticipates further growth as Target expands its advertising business. Emphasizing Target’s operational improvements in inventory management, shrink reduction, and supply chain efficiencies, Tarlowe remains optimistic about the long-term prospects for Target. Target stands as a promising investment opportunity with room for margin expansion and continued growth potential.
These top dividend stocks recommended by Wall Street experts – Energy Transfer (ET), Garmin (GRMN), and Target (TGT) – offer attractive opportunities for investors seeking a regular income stream. With strong fundamentals, solid growth prospects, and favorable analyst ratings, these dividend stocks stand out as compelling investment options in today’s market environment.
Leave a Reply