Top Wall Street analysts pick these dividend stocks to boost returns

When markets become volatile, dividends provide investors’ portfolios with some support in the form of income.

Dividends provide a great opportunity to enhance investors’ total returns over the long term. Investors should not base their stock purchases on dividend yields alone, but should evaluate the strength of a company’s fundamentals and analyze the consistency of those payouts first. Analysts have insight into those details.

To that end, here are five attractive ones Dividend stocksaccording to top Wall Street experts at TipRanks, a platform that ranks analysts based on their past performance.

Let’s first take a look at telecom giant Verizon (VZ). The stock offers a dividend yield of 8%. Last week, the company announced a quarterly dividend of 66.50 cents per outstanding share. An increase of 1.25 cents From the previous quarter. This marks the 17th consecutive year that the company’s Board of Directors has approved a quarterly dividend increase.

Recently, a Citi analyst Michael Rollins Verizon upgrades and competes with AT&T (T) to buy from waiting. The analyst increased his price target for Verizon stock by $1 to $40, while maintaining his price target for AT&T at $17.

Rollins noted that several headwinds such as competition, industry structure, rising prices and concerns about lead-covered cables have weighed on investor sentiment about telecom companies. However, he has a more positive view of large-cap telecom stocks.

“The wireless competitive environment is showing positive signs of stabilization which should help operating performance,” said Rollins, who is ranked No. 298 out of more than 8,500 analysts on TipRanks.

The analyst emphasized that the recently announced price hikes by Verizon and AT&T indicate a stable competitive backdrop for wireless communications. He also noted that customers are keeping their phones longer, which reduces device upgrade costs and stabilizes the rate of lag.

Overall, the analyst sees the possibility of some of the lingering market concerns fading over the next 12 months. Improving free cash flow prospects are also expected to reduce net debt and support dividend payments.

Rollins has a 65% success rate and each of his reviews returned an average of 13.3%. (be seen Verizon hedge fund trading activity on TipRanks)

Medtronic Medical Devices Company (MDT) newly It announced a quarterly dividend of $0.69 per share For the second quarter of fiscal year 2024, payable on October 13. MDT has increased its annual dividend for 46 consecutive years and has a dividend yield of 3.5%.

In response to MDT’s upbeat first-quarter financial results and improving earnings outlook, Stifel analyst Rick Wise Continued recovery in elective procedure volumes, supply chain improvements, and product launches helped drive revenue performance across multiple business units, he explained.

The analyst believes Medtronic’s guidance indicates it is now well positioned to deliver better-than-expected growth and margins on an ongoing basis. He also expressed optimism about the company’s transformation initiatives under the leadership of CEO Jeff Martha.

“We view Medtronic as an essential healthcare company and a total return vehicle in any market environment for investors seeking safety and stability,” Wise said, while raising his price target to $95 from $92 and reaffirming a buy rating.

Wise holds the No. 729 spot among more than 8,500 analysts on TipRanks. Furthermore, 58% of his evaluations were profitable, with each generating an average return of 6.3%. (be seen Medtronic Insider Trading Activity on TipRanks)

Another Stifel analyst, Drew CrumBullish on toy maker Hasbro (he have). He increased his price target on Hasbro to $94 from $79 while maintaining a Buy rating, and moved the stock to the Stifel Select List.

Crum acknowledged that HAS stock has been a relative underachiever over the past several years due to several fundamental issues that have led to investor dissatisfaction.

However, the analyst is bullish on the stock and expects earnings strength and cash flow generation to increase, driven by multiple catalysts such as portfolio adjustments, more cost discipline, greater focus on gaming and licensing, as well as a new senior leadership team.

Crum noted that Hasbro has grown its dividend for 10 consecutive years (2010-2020) at a compound annual growth rate of more than 13%, with the annual distribution representing more than 50% of free cash flow, on average. However, any upward adjustments have yet to be limited Entertainment acquisition oneWith only one increase during the period from 2021 to 2023.

The analyst believes that given the current dividend yield of around 4%, Hasbro’s board may be less inclined to approve an aggressive raise from here. However, with cash flow expected to increase, Crum said the company “should have more flexibility around increasing its dividend in the future.”

Crum is ranked 322nd among more than 8,500 analysts tracked by TipRanks. His ratings were profitable 59% of the time, with each rating generating an average return of 12.9%. (be seen Hasbro stock chart on TipRanks)

Next is del(Dale), maker IT hardware and infrastructure technology, which rose after its second-quarter financial results far exceeded Wall Street estimates. The company returned $525 million to shareholders through stock buybacks and dividends that quarter. DELL offers a dividend yield of 2.1%.

Evercore Analyst Amit Daryanani Maintained a Buy rating following the results and raised the price target on DELL stock to $70 from $60. Daryanani is ranked No. 249 out of more than 8,500 analysts tracked by TipRanks.

Dell posted an impressive rise in July quarter revenue and earnings per share (EPS), driven by broad-based strength across both its infrastructure and customer segments, the analyst highlighted. Specifically, the notable upside in the infrastructure sector has been fueled by GPU-enabled servers.

The analyst also noted that Dell generated $3.2 billion in free cash flow in the quarter, and is currently running on free cash flow of more than $8 billion on a trailing-twelve-month basis. This means the company has “plenty of dry powder” to significantly boost its capital allocation program, he added.

“We believe the catalysts at DELL are starting to build up in a notable way ranging from – a cap allocation update during the next analysis day, AI-centric revenue acceleration and potential inclusion in the S&P 500,” Daryanani said.

In total, 60% of his evaluations were profitable, with each generating an average return of 11.5%. (be seen Dell financial statements on TipRanks)

We finally arrived at the major retailer Walmart (And die), which is a dividend aristocrat. Earlier this year, the company raised its annual dividend for fiscal 2024 by about 2% to $2.28 per share. Distinguish this 50^y A consecutive year of increased profits For the sake of the company. WMT’s dividend yield is 1.4%.

Following WMT’s upbeat second-quarter financial results and full-year forecast update, Baird analyst Peter Benedict She highlighted that traffic gains in stores and online channels reflect that consumers are choosing Walmart for the combination of value and convenience.

Benedict also noted that the company’s efforts to improve productivity and profitability are gaining momentum.

The analyst reiterated a buy rating on WMT and raised the price target to $180 from $165, saying the new price target “assumes ~23x EPS in FY25E, which is slightly above the stock’s five-year average of ~22x given the company’s defensive sales mix.” , market equity gains, and improves long-term profit/ROI profile as alternative revenue streams expand.”

Benedict ranks 94th out of more than 8,500 analysts tracked by TipRanks. His ratings were profitable 68% of the time, with each rating generating an average return of 13.7%. (be seen Technical analysis of Walmart on TipRanks)