Here are three attractive dividend stocks, according to top Wall Street experts at TipRanks, a platform that ranks analysts based on past performance.
First of all, telecommunications giant Verizon Communications (VZ) recently reported fourth-quarter results, impressing investors with strong growth in wireless postpaid phone subscribers.
In 2023, the company will increase its dividend for the 17th consecutive year. Verizon's quarterly dividend is $0.665 per share (annualized dividend is $2.66), giving it a yield of 6.7%.
Following Verizon's fourth-quarter results, Tigress Financial analyst Ivan Feinseth reiterated his buy rating on the stock and raised his price target from $45 to $50 per share. The analyst noted that the company is expected to achieve strong subscriber and cash flow growth in 2023, with further acceleration this year.
“Continued 5G and fixed wireless broadband momentum, increased service offerings, combined with improved operating efficiencies and margins, should reaccelerate cash flow growth and improve operating trends.” Seth said.
The analyst believes Verizon's strong balance sheet and cash flow will support the company's continued investment in spectrum expansion and other growth strategies, as well as dividend increases. Overall, he believes the company offers an attractive investment opportunity given its high dividend yield and industry-leading position that allows it to benefit from long-term telecommunications trends.
Mr. Feinseth is ranked #214 out of over 8,700 analysts tracked by TipRanks. His rating is that he is profitable 61% of the time, and the average return for each is 11.7%. (See his Verizon hedge fund activity on TipRanks)
enterprise product partner
This week's second dividend candidate is Enterprise Products Partners (EPD) is a master limited partnership providing midstream energy services. Last month, the company announced a quarterly cash distribution of $0.515 per unit in the fourth quarter of 2023, to be paid on February 14th. This quarterly distribution is up 5.1% year over year and reflects a yield of nearly 8%. .
Following EPD's fourth-quarter results, Stifel analyst Selman Akiolu reaffirmed his buy rating on the stock and raised his price target from $35 to $36 per share. The analyst said fourth-quarter 2023 results were slightly better than expected. He raised his forecast for 2024 earnings before interest, taxes, depreciation and amortization by more than 2%, largely due to the company's natural gas and liquids pipeline division.
Additionally, Akyol expects EPD's pipeline and export throughput momentum to continue in the short term. The analyst also noted that EPD has been increasing its dividend for 25 years. He expects dividends to be the primary means of returning capital to investors, and share buybacks to be opportunistic.
Explaining his investment stance, Akyol said, “We believe Enterprise has the strongest financial profile in the midstream sector and can withstand disruptions caused by a volatile macro environment.”
Akyol is ranked #695 out of over 8,700 analysts tracked by TipRanks. His rating is that he is profitable 64% of the time, and the average return on each is 5%. (See his EPD insider trading activity on TipRanks)
Our third dividend candidate is another midstream energy company, MPLX LP (MPLX). Last month, the master limited partnership announced a quarterly distribution of 85 cents per common unit in the fourth quarter of 2023, payable on February 14th. MPLX's dividend yield is 9%.
Based on the recently released fourth quarter results, RBC Capital analyst Elvira Scott reiterated her buy rating on MPLX stock and raised her price target from $45 to $46 per share. The analyst expects the company's adjusted EBITDA in the fourth quarter of 2023 to increase, thanks to higher product volumes, higher pipeline rates in logistics and storage, and higher throughput in gathering and processing. He pointed out that this was 4% higher than expected.
Given the high yield offered by the stock, Scott believes MPLX remains one of the most attractive sources of income in the large-cap MLP space. Analysts expect cash distributions of $3.57 per unit in 2024 and $3.84 in 2025. This is an increase from his $3.40 in 2023.
“Future cash flow generation, combined with the financial flexibility afforded by lower leverage and appropriate distribution coverage, could result in incremental capital returns for investors over time,” Scott said. ” I think.
Scott is ranked #83 out of over 8,700 analysts tracked by TipRanks. Her rating is that she is profitable 64% of the time, and the average return on each is her 17.8%. (See her MPLX technical analysis on TipRanks)