Traders can enrich their investment collections and boost profits by putting money into dividend-distributing equities.
In order to pinpoint favorable opportunities, traders ought to search for corporations with an established history of distributing dividends backed by robust financial achievements.
Listed below are three enticing dividend equities highly favored by eminent analysts on Wall Street, according to TipRanks, a platform that assesses analysts’ performance using their past accuracy.
Darden Restaurants
The primary recommended dividend equity is Darden Restaurants (DRI), the proprietor of renowned full-service dining brands like Olive Garden, LongHorn Steakhouse, and Yard House. In the most recent fiscal quarter, Darden posted a mixed outcome, surpassing earnings projections but slightly missing revenue expectations due to intensified competitive pricing.
During fiscal year 2024, Darden dispensed $628 million in dividends, earmarked $454 million for share buybacks, and increased its quarterly dividend by almost 7% to $1.40 per share, leading to a 3.5% dividend yield.
In light of the earnings report, BTIG analyst Peter Saleh upheld a buy recommendation on DRI with a target price of $175, highlighting the company’s anticipated double-digit total shareholder return and favorable growth prospects fueled by pricing tactics, marketing initiatives, and moderation in inflation.
Saleh accentuated Darden’s consistent outperformance in the industry in terms of sales and restaurant margins, positioning it as a sturdy player in the market.
Saleh holds the 360th position among more than 8,900 analysts monitored by TipRanks, boasting a 61% success rate and an average return of 11.7%. (Check out Darden’s Financial Statements on TipRanks)
International Seaways
The subsequent recommended equity is International Seaways (INSW), a shipping firm providing energy transit services for crude oil and petroleum products. In June, the firm dispensed a dividend of $1.75 per share, representing 60% of its first-quarter adjusted net income.
INSW reported a cumulative dividend payout of $5.74 per share in the last twelve months, translating to a dividend yield exceeding 13%.
After dialogues with INSW’s management, analyst Benjamin Nolan from Stifel reaffirmed a buy rating with an increased target price of $68, pointing out a robust tanker sector propelled by increasing global oil demand, restricted new vessel supply, and extended voyage distances due to geopolitical hurdles.
Nolan anticipates INSW to maintain substantial additional dividends, underpinned by an expected surplus cash flow of $200-300 million after capital expenditures. The analyst projects a 2024 dividend of $5.51 per share but envisions the potential for higher distributions.
Nolan holds the 68th rank among more than 8,900 analysts monitored by TipRanks, flaunting a 67% success rate and an average return of 19.5%. (Examine International Seaways’ Stock Charts on TipRanks)
Citigroup
Lastly, the third recommended dividend equity this week is the financial behemoth Citigroup (C), offering a 3.3% return with a quarterly dividend of 53 cents per share.
During the Services Investor Day on June 18, Citigroup management expressed confidence in achieving the 2024 guidance, driven by revenue expansion in core operations despite economic uncertainties and potential drops in interest rates.
In the aftermath of the event, Goldman Sachs analyst Richard Ramsden reiterated a buy recommendation on Citigroup, elevating the target price to $72 from $71, indicating improved EPS projections for 2024-2026 based on the bank’s progress in strategic overhauls.
Ramsden commended Citi’s focused stance on risk management, enhancement of data quality, and strategic advancements in the Services division, projecting substantial revenue growth contribution by 2026.
The analyst’s confidence in Citi stems from its expansive global network, robust client connections, and investments in technology fostering an expansion in market share.
Ramsden occupies the 969th position among more than 8,900 analysts tracked by TipRanks, with a success rate of 65% and an average return of 11.9%. (Explore Citigroup Technical Analysis on TipRanks)
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