The first dividend stock to consider is Enterprise Products Partners (EPD), a midstream energy services provider that has consistently increased its cash distribution for 25 years in a row. With a compound annual growth rate of 7%, EPD announced a 5.1% year-over-year increase in its quarterly cash distribution to $0.515 per unit. The stock boasts an attractive dividend yield of 7.1%. RBC Capital analyst Elvira Scotto is bullish on EPD, reiterating a buy rating with a price target of $35. Scotto believes that the company’s organic growth projects, particularly in the Permian Basin, will drive growth for at least another decade. She is confident in EPD’s ability to support its growth investments, projecting mid-single-digit growth in distributions.
Goldman Sachs (GS) is another dividend stock worth considering, especially after reporting better-than-expected first-quarter results. The investment bank saw solid performance driven by a rebound in capital market activities, leading to a return of $2.43 billion to shareholders through share repurchases and dividends. With a dividend yield of 2.7%, Argus analyst Stephen Biggar upgraded his rating on GS to buy from hold, setting a price target of $465. He is optimistic about the current recovery in investment banking, driven by strong sequential improvement in equity and debt underwriting. Biggar expects improved revenues in the second half of 2024, supported by significant year-over-year increases in capital formation and IPO issuance.
Cisco Systems (CSCO), a networking equipment maker, is the third dividend stock to consider. In the second quarter of fiscal 2024, Cisco returned $2.8 billion to stockholders through share repurchases and dividends. With a dividend yield of 3.3%, the company raised its dividend by roughly 3% to 40 cents per share. Bank of America Securities analyst Tal Liani upgraded Cisco to buy from hold, raising the price target to $60 from $55. Liani sees three catalysts for growth: AI-related tailwinds, growth in the security business, and synergies from the Splunk acquisition. Despite potential pressure in the next two quarters, Liani believes that Cisco’s share gains in Ethernet-based AI buildouts will drive growth.
The current macroeconomic challenges and geopolitical tensions have created uncertainty in the stock market, causing major averages to fluctuate. In such volatile times, investors may find comfort in dividend-paying stocks like Enterprise Products Partners, Goldman Sachs, and Cisco Systems. These companies offer stable dividends, strong financials, and growth potential, making them attractive investment options.
Dividend stocks have long been considered a safe haven for investors seeking stability and consistent income. By following the recommendations of top Wall Street analysts, investors can make informed decisions about dividend-paying stocks with the potential for long-term growth. Enterprise Products Partners, Goldman Sachs, and Cisco Systems are just a few examples of dividend stocks that analysts believe have the ability to grow their dividends and provide attractive returns to shareholders.
Amidst the current market uncertainties, dividend-paying stocks remain a solid choice for investors looking to weather the storm. By focusing on companies with strong fundamentals, growth potential, and solid dividend yields, investors can position themselves for success in the long run. The recommendations of top Wall Street analysts provide valuable insights into the prospects of dividend stocks like Enterprise Products Partners, Goldman Sachs, and Cisco Systems, making them worth considering for a well-rounded investment portfolio.