Dividend-paying stocks are a great way for investors to boost their portfolio returns and find stability in unpredictable markets. By keeping an eye on the recommendations of Wall Street analysts, investors can choose dividend stocks from companies with promising growth potential that could lead to higher dividends and earnings.
One such recommended dividend stock is Northern Oil and Gas (NOG), a company that focuses on acquiring, exploring, and producing oil and natural gas properties in various basins. Recently, NOG paid a dividend of 40 cents per share, marking an 18% year-over-year increase and offering a dividend yield of 4.1%. The company also engaged in stock buybacks worth $20 million in the first quarter of 2024. Additionally, NOG announced a partnership with SM Energy to acquire a stake in Uinta Basin assets, which was well received by RBC Capital analyst Scott Hanold. Hanold believes that this strategic move aligns with NOG’s expansion plans and could lead to a significant increase in earnings, cash flow, and free cash flow, potentially enabling NOG to raise its base dividend in the future.
Moving on to JPMorgan Chase (JPM), the largest U.S. bank by assets, the company recently announced plans to increase its dividend by 9% to $1.25 per share for the third quarter of 2024. JPM also authorized a new share repurchase program of $30 billion to enhance shareholder returns. RBC Capital analyst Gerard Cassidy reiterated a buy rating on JPM stock, highlighting the company’s strong management team, diverse revenue streams, and robust balance sheet. Cassidy believes that JPM’s consumer and capital markets businesses will continue to drive profitability and market share gains in the banking industry.
Lastly, big-box retailer Walmart (WMT) increased its dividend by 9% earlier this year, representing the 51st consecutive annual dividend hike. Walmart returned $2.73 billion to shareholders in the fiscal first quarter through dividends and share repurchases. Jefferies analyst Corey Tarlowe reaffirmed a buy rating on WMT, emphasizing the company’s focus on artificial intelligence and automation initiatives. Tarlowe believes that these efforts could double Walmart’s operating income by fiscal year 2029, driven by automation efficiencies, advertising, theft mitigation, and autonomous driving technology. He also mentioned Walmart’s strategic investments in AI technologies, such as partnering with Fox Robotics for autonomous forklifts and deploying automatic receipt verification arches at Sam’s Club.
In conclusion, following the recommendations of top Wall Street analysts can help investors identify promising dividend stocks with growth potential. Companies like Northern Oil and Gas, JPMorgan Chase, and Walmart are examples of dividend-paying stocks that analysts believe have attractive prospects for future earnings and dividend increases. By staying informed and conducting thorough research, investors can make informed decisions to enhance their investment portfolios and achieve financial goals.
