Investing in the stock market can be a rollercoaster ride, especially during volatile times like earnings season and the upcoming elections. However, one way to smooth out the bumps in your portfolio is by investing in dividend-paying stocks. These stocks not only provide a steady stream of income but also offer the potential for long-term growth. In this article, we will explore three attractive dividend stocks recommended by Wall Street’s top analysts.
One of the top dividend stocks to consider is Western Midstream Partners (WES), a limited partnership that owns and operates midstream assets in several states. WES offers a high dividend yield of 8.8% and has recently increased its base distribution by 52%. Analysts are bullish on WES, with Mizuho analyst Gabriel Moreen raising the price target and reaffirming a buy rating. Moreen believes that WES has the potential for further distribution hikes, thanks to its strong financials and solid outlook.
Another promising dividend stock is Diamondback Energy (FANG), a company focused on onshore oil and natural gas reserves in West Texas. FANG recently paid a base cash dividend and a variable cash dividend to its shareholders. RBC Capital analyst Scott Hanold reiterated a buy rating on FANG stock, with expectations of improved production and shareholder returns for the upcoming quarters. Hanold is confident that FANG shares will outperform its peers in the next 12 months, making it an attractive pick for dividend investors.
Lastly, beverage giant Coca-Cola (KO) is a solid choice for investors looking for dividend stocks. KO recently announced better-than-anticipated second-quarter results, including an increase in its quarterly dividend. RBC Capital analyst Nik Modi raised the price target for KO stock and reaffirmed a buy rating, citing strong demand for the company’s products and improved gross margins. Despite challenges in certain markets, Modi is optimistic about KO’s fundamentals and its ability to meet its targets for the year.
Dividend-paying stocks can be a valuable addition to any investor’s portfolio, providing a mix of income and growth potential. By following the recommendations of top Wall Street analysts, investors can identify high-quality dividend stocks like Western Midstream Partners, Diamondback Energy, and Coca-Cola. These stocks offer attractive dividend yields, strong financial performance, and positive outlooks, making them solid choices for both income and growth investors. Consider adding these dividend stocks to your portfolio for a steady stream of income and long-term wealth accumulation.