In a market filled with uncertainty and volatility, investing in stable, high-quality dividend stocks can provide a sense of security for investors. Dividend-paying stocks not only offer income but also have the potential for growth over the long term. Analysts conduct in-depth research to identify companies with a solid track record of paying and increasing dividends.
To help navigate the current market environment, we’ve compiled a list of three attractive dividend stocks recommended by Wall Street’s top experts on TipRanks.
1. Enbridge (ENB):
Enbridge is an energy infrastructure company that plays a crucial role in the transportation of crude oil and natural gas in North America. The company has a strong history of increasing its dividend for 29 years and currently boasts a dividend yield of 7.7%. Following a recent investor day event, RBC Capital analyst Robert Kwan reiterated a buy rating on ENB stock, citing recent developments that support the company’s growth prospects.
2. Bank of America (BAC):
Bank of America is a leading banking institution that returned $12 billion to shareholders in dividends and share repurchases in 2023. With a dividend yield of 2.6%, BAC offers stability and profitability for investors. RBC Capital analyst Gerard Cassidy has a buy rating on BAC stock, highlighting the bank’s strong balance sheet and consistent profitability.
3. PepsiCo (PEP):
PepsiCo is a multinational snack food and beverage giant with a long history of increasing dividends. The company recently announced a 7% hike in its annualized dividend, marking the 52nd consecutive year of dividend growth. Morgan Stanley analyst Dara Mohsenian upgraded PepsiCo stock to buy, emphasizing the company’s strong growth prospects and undervalued stock price.
In conclusion, investing in dividend stocks can provide a steady stream of income and potential for growth in a volatile market. By selecting high-quality companies with a track record of paying and increasing dividends, investors can build a stable and resilient portfolio for the long term.
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