Allocating funds to dividend-dispensing stocks can act as a shield for investor assets amidst market uncertainties whilst enhancing overall profits.
Yet, pinpointing the most lucrative dividend-paying stocks presents a formidable task. Analysts with top-notch credentials on Wall Street possess the expertise to pinpoint enterprises likely to ensure enduring dividend receipts and capital growth over an extended period.
Presented here are three attractive dividend stock picks, as suggested by top-rated analysts on TipRanks, which evaluates analysts based on their track record’s accuracy and performance.
Kimberly-Clark
Esteemed household product giant Kimberly-Clark (KMB), housing celebrated labels like Huggies and Kleenex, commands attention as the initial premier dividend stock of the week. This illustrious dividend monarch has commendably escalated its dividends for more than five decades in succession.
During the year’s first quarter, Kimberly-Clark returned $452 million to its shareholders through distributions and repurchasing initiatives. Its quarterly dividend resides at $1.22 per share, which is an annualized $4.88, reflecting a 3.5% yield.
Subsequent to the Kimberly-Clark Analyst Day meet in March, Nik Modi from RBC Capital bump up his stance on KMB’s shares from a hold to a buy, improving the target price from $126 to $165. Modi’s positivity springs from the shift in the company’s strategy towards growth-driven objectives from cost-saving measures.
He is of the view that Kimberly-Clark is on a trajectory for more steady, enhanced expansion and is certain in its ability to attain its expansive financial targets, including sustaining a 40% gross margin and surpassing 3% revenue growth annually in local currencies by 2030’s entrance.
Modi lauds CEO Mike Hsu for breathing new life into KMB’s game plan and reorganizing into three sectors, resulting in lower costs for products and expedited introductions to the market.
Landing at 593 among the 8,800-plus analysts followed on TipRanks, strategies suggested by Modi succeeded 61% of the time, with an average gain of 6.8%. (Investigate Kimberly-Clark’s Buyback Information on TipRanks)
Chord Energy
Next, we consider the significant Williston Basin hydrocarbon prospector Chord Energy (CHRD). Generosity is displayed through its $1.25 per share routine dividend and a special issuance of $1.69 per share in June.
The completed transaction of Enerplus acquiring Chord Energy is anticipated to reinforce the company’s dominance in the Williston Basin, incurring an augmented scope, economically efficient reserves, and robust returns for shareholders.
Endorsing CHRD’s shares, William Janela from Mizuho Securities continues with a buy rating and a $214 target price, highlighting an excellent merger integration and a 33% hike in the forecast for yearly cost synergy savings, which now surpasses $200 million.
Janela projects the union to prioritize operational efficacy and reap monetary benefits, with a forecast of a 9% dividend yield and an enhanced fiscal situation.
“Considering its comparison to peers in terms of Free Cash Flow against the Enterprise Value, the stock appears attractively valued at a lower multiple,” Janela postulates.
Janela stands at the 333rd spot out of 8,800+ analysts ranked on TipRanks, manifesting a success rate of 57% and an average return of 29.9%. (Peruse Chord Energy’s Performance Data on TipRanks)
Cisco Systems
Concluding the recommendations is the industry-leading technology purveyor Cisco Systems.(CSCO). In the fiscal third quarter of 2024, Cisco endowed $2.9 billion to its investors, which includes dividends of $1.6 billion and share repurchases worth $1.3 billion. CSCO’s yield sits at 3.5%, with a 40 cents dividend each quarter per share.
Renewing a buy status and a $56 price target on Cisco shares, analyst George Notter from Jefferies expressed greater assurance in Cisco’s strategic roadmap, especially considering its Splunk buyout completed in the March of 2024.
Reasserting projections for fiscal 2024’s fourth quarter at the same event, Cisco anticipates modest to moderate revenue increases for the fiscal year 2025. According to Notter, Cisco’s yearly revenue growth prediction of 4-6% over fiscal 2026-2027, alongside bolstered gross margins, places the enterprise in an advantageous spot, bearing in mind its past growth record of 1-3% annually.
With a position of 629th among the analysts on TipRanks, Notter’s assessments have paid off 62% of the time, delivering a return on investment averaging 10.1%.
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