Investing in dividend-paying stocks can be a wise decision, especially with the Federal Reserve expected to cut interest rates soon. One such attractive dividend stock is EPR Properties (EPR), a real estate investment trust that focuses on experiential properties such as movie theaters, amusement parks, and ski resorts. With a dividend yield of 7.3%, EPR Properties offers investors an attractive opportunity for income generation. RBC Capital analyst Michael Carroll recently upgraded his rating for EPR to buy from hold and raised the price target to $50 from $48. His positive outlook is based on the company successfully navigating tough operating conditions, including the Covid-19 pandemic and the actors/writers strikes. Carroll believes that EPR is well-positioned to deliver favorable results as these challenges subside. Additionally, he emphasized that EPR’s high dividend yield is protected by its solid financials, including a 5.2-times net debt to earnings before interest, taxes, depreciation, and amortization ratio.
Energy Transfer: A Limited Partnership
Another dividend stock worth considering is Energy Transfer (ET), a limited partnership in the midstream energy sector. With a dividend yield of 8%, Energy Transfer recently reported a quarterly cash distribution increase of 3.2% year-over-year. Stifel analyst Selman Akyol expressed optimism about ET’s growth prospects, particularly in the company’s Permian to Gulf Coast value chain. Akyol highlighted the positive sentiment around natural gas and its potential to meet the energy needs of artificial intelligence data centers. He also noted the rising demand from utilities in states like Texas and Florida, which present attractive growth opportunities for ET. Akyol reaffirmed a buy rating on ET stock with a price target of $19, citing the company’s strong positioning and continued growth potential.
Walmart: The Big-Box Retailer
Walmart (WMT) is another dividend-paying stock that has impressed investors with its recent performance. The company raised its full-year outlook after a strong second quarter in fiscal 2025. Walmart’s commitment to rewarding shareholders through dividends and share repurchases is evident in its consistent track record of dividend hikes, with the most recent increase of 9% earlier this year. Baird analyst Peter Benedict reiterated a buy rating on Walmart and raised the price target to $82, emphasizing the retailer’s market share gains and transformation efforts. Benedict highlighted Walmart’s focus on value and convenience, which contributed to strong digital growth and higher-margin income streams. He also pointed out the company’s improved return on investment, driven by investments in automation and generative AI. Walmart’s strong performance and commitment to shareholder value make it a compelling dividend stock for investors seeking long-term growth and income.
Investing in dividend-paying stocks can be a smart strategy in a low-interest-rate environment. Companies like EPR Properties, Energy Transfer, and Walmart offer attractive dividend yields and strong financial positions, making them compelling investment opportunities. By carefully evaluating the recommendations of top analysts and considering the long-term growth prospects of these dividend stocks, investors can build a diverse and income-generating portfolio that aligns with their financial goals.