Northern Oil and Gas (NOG) is a company that engages in the acquisition, exploration, and production of oil and natural gas properties in various basins. They recently paid a dividend of 40 cents per share for the first quarter, marking an 18% year-over-year increase, resulting in a dividend yield of 4.1%. Additionally, they have enhanced shareholder returns through stock buybacks worth $20 million in Q1 2024. NOG has also announced an agreement to acquire a 20% stake in the Uinta Basin assets of XCL Resources for $510 million. This move was met with positivity from Wall Street analysts, with RBC Capital analyst Scott Hanold reiterating a buy rating on NOG stock and increasing his price target to $46. Hanold believes that the acquisition aligns with NOG’s strategic goals and could lead to further expansion in the Uinta Basin through additional deals. He has also revised his earnings per share and cash flow estimates following the announcement, predicting a 10% to 15% increase in dividends for 2025.
JPMorgan Chase (JPM)
JPMorgan Chase (JPM) is the largest U.S. bank by assets and has recently announced plans to increase its dividend by about 9% to $1.25 per share for the third quarter of 2024, resulting in a dividend yield of 2.2%. This would mark the second dividend hike for the year, with the previous increase bringing the dividend to $1.15 per share. In addition to dividend increases, JPM has authorized a $30 billion share repurchase program to further enhance shareholder returns. Wall Street analysts, including RBC Capital’s Gerard Cassidy, have reaffirmed their buy ratings on JPM stock, citing reasons such as a strong management team, impressive business lines, and a well-diversified revenue stream. Cassidy believes that JPM’s consumer and capital markets businesses are poised for enhanced profitability as the company gains market share from competitors.
Walmart (WMT)
Walmart (WMT) is a big-box retailer that increased its dividend by 9% earlier this year to 83 cents per share, marking its 51st consecutive annual dividend hike. In the fiscal first quarter, WMT returned $2.73 billion to shareholders through dividends and share repurchases. With a payout ratio of 37.5%, the company has room for further dividend growth. Analysts, like Jefferies’ Corey Tarlowe, have reiterated their buy ratings on WMT stock, with price targets reflecting confidence in the company’s future. Tarlowe believes that Walmart is at the forefront of artificial intelligence and automation adoption, which could double the company’s operating income by fiscal year 2029. He highlights initiatives like strategic investments in autonomous technologies and automated processes that could drive significant earnings growth for Walmart in the coming years.
Overall, dividend-paying stocks like NOG, JPM, and WMT present attractive opportunities for investors looking to enhance their portfolio returns and secure steady income in volatile markets. By following the advice of top Wall Street analysts and monitoring companies with strong growth prospects, investors can make informed decisions to capitalize on dividend-paying stocks in 2024.