Dividend-paying stocks are a great way for investors to enhance their portfolios and increase returns. To find these stocks, it’s important to look for companies with a history of consistent payments and strong financials. Here are three top dividend stocks recommended by Wall Street analysts on TipRanks.
First up is Darden Restaurants (DRI), the company behind popular dining brands like Olive Garden and LongHorn Steakhouse. Despite slightly missing sales expectations in the fourth quarter of fiscal 2024, Darden exceeded earnings projections. The company also increased its dividend by nearly 7% to $1.40 per share, resulting in a dividend yield of 3.5%. Analyst Peter Saleh from BTIG reiterated a buy rating on DRI with a price target of $175, citing the company’s strong performance in the industry.
International Seaways (INSW) is a tanker company that offers energy transportation services. The company paid a combined dividend of $1.75 per share, representing 60% of its first-quarter adjusted net income. Analyst Benjamin Nolan from Stifel reaffirmed a buy rating on INSW with a price target of $68, noting the strong tanker market driven by global oil consumption. Nolan expects the company to continue delivering higher cash flows and sustain high supplemental dividends.
Lastly, Citigroup (C) is a banking giant offering a quarterly dividend of 53 cents per share, yielding 3.3%. Following the bank’s Services Investor Day, analyst Richard Ramsden from Goldman Sachs reiterated a buy rating on Citigroup with a price target of $72. Ramsden highlighted the bank’s strategic transformation plan gaining momentum, with a focus on risk control and data quality. He also noted the Services business as a key revenue driver for the bank through 2026.
Overall, these three dividend stocks offer attractive opportunities for investors looking to boost their portfolios with steady income. With strong backing from Wall Street analysts, Darden Restaurants, International Seaways, and Citigroup are worth considering for higher returns in the long run.