When looking for dividend-paying stocks to add to your portfolio, it is always beneficial to consider the insights of Wall Street analysts who have a proven track record of success. OneMain Holdings (OMF) is a financial services company that caters to the needs of non-prime customers and offers an appealing dividend yield of 8.1%. In addition to regular dividends, OMF also enhances shareholder returns through share repurchases. Recently, RBC Capital analyst Kenneth Lee raised his price target for OMF stock to $55 from $50, underscoring the company’s reliable business model and capital generation ability. Lee believes that OMF deserves a premium valuation due to its potential to deliver a high return on tangible common equity and expects finance receivables to grow at a strong rate.
Walmart (WMT)
Walmart (WMT) is a well-known big-box retailer that recently announced a significant increase in its annual dividend, marking its 51st consecutive year of dividend raises. With a dividend yield of 1.4%, Walmart continues to deliver value to its shareholders. Following a meeting with Walmart’s management, Jefferies analyst Corey Tarlowe reiterated a buy rating on WMT stock and set a price target of $70. Tarlowe highlighted several positive developments, including improved customer experience scores, increased private label penetration, enhanced e-commerce capabilities, and a rise in Sam’s Club membership levels that are poised to drive top-line growth. Moreover, Tarlowe sees potential for substantial growth in Walmart’s international segment and advertising business, making WMT an attractive dividend stock.
Schlumberger (SLB)
Schlumberger (SLB) is an oilfield services company that recently reported better-than-expected fourth-quarter results and raised its quarterly cash dividend by 10%. With a dividend yield of 2%, SLB presents an opportunity for investors seeking exposure to the energy sector. Goldman Sachs added SLB to its Conviction List with a price target of $62, noting that the company is a leading provider of energy services. Analyst Neil Mehta highlighted SLB’s attractive valuation, strong free cash flow generation, and digital business potential. Mehta believes that SLB’s digital capabilities are underappreciated in the market and that the company is well-positioned to capitalize on the growing demand for digital solutions in the energy services industry.
Leveraging the expertise of top Wall Street analysts can help investors identify dividend-paying stocks with long-term growth potential and the ability to sustain dividend payments. Companies like OneMain Holdings, Walmart, and Schlumberger present compelling investment opportunities based on the insights of analysts like Kenneth Lee, Corey Tarlowe, and Neil Mehta. By considering analyst recommendations and conducting thorough research, investors can build a diversified portfolio of dividend stocks that provide stability and potential for capital appreciation.