Amid fears of an economic slowdown, investors are turning to dividend-paying stocks to weather the storm. Pfizer, a renowned health-care giant, has emerged as a top pick for Wall Street analysts. The company recently announced better-than-expected second-quarter results, driven by cost-cutting efforts and strong sales of non-Covid products. With a dividend yield of 5.9%, Pfizer returned $4.8 billion to shareholders via dividends in the first half of 2024. Goldman Sachs analyst Chris Shibutani reiterated a buy rating on PFE stock and raised the price target to $34, citing the company’s robust outlook and performance. Shibutani’s past predictions have been profitable 46% of the time, with an average return of 13%.
Civitas Resources (CIVI):
Another attractive dividend stock amidst the economic uncertainty is Civitas Resources, an oil and natural gas producer. The company recently declared a quarterly dividend of $1.52 per share, signaling its commitment to rewarding shareholders. Mizuho analyst William Janela reaffirmed a buy rating on CIVI stock, highlighting its solid performance and shareholder-friendly initiatives. Civitas’ revised shareholder-return program, which includes a combination of buybacks and dividends, has resonated positively with investors. Janela’s track record shows that his ratings have been successful 52% of the time, with an average return of 25.6%.
IBM (IBM):
Tech giant IBM is also on the radar of investors seeking stable dividend stocks. The company impressed investors with better-than-expected second-quarter results, driven by its strong artificial intelligence business. IBM’s dividend yield of 3.5% is supported by robust cash flows, reflecting the company’s confidence in its growth potential. Evercore analyst Amit Daryanani reiterated a buy rating on IBM stock, emphasizing the company’s growth prospects and shareholder-friendly approach. Daryanani, whose ratings have been profitable 54% of the time, with an average return of 10.4%, expects IBM to focus more on mergers and acquisitions for capital allocation.
As the stock market faces volatility and economic uncertainty, dividend-paying stocks like Pfizer, Civitas Resources, and IBM offer investors stability and income. These companies, backed by strong financials and the ability to pay dividends consistently, are top picks among Wall Street analysts. In times of market turmoil, focusing on dividend stocks can help investors navigate through rough waters and build a reliable source of passive income.