Dividend-paying stocks are becoming increasingly attractive as the Federal Reserve is expected to cut interest rates in September. This move will make dividend yields on such stocks more appealing compared to returns from other income-generating assets like bonds. For investors looking to capitalize on this trend, selecting the right stocks from a vast pool of dividend-paying companies can be a daunting task.
EPR Properties, a real estate investment trust focused on experiential properties, is a top dividend pick highlighted by Wall Street’s top analysts. With an impressive dividend yield of 7.3%, EPR has caught the attention of investors. RBC Capital analyst Michael Carroll recently upgraded his rating for EPR citing the company’s resilience in navigating challenging operating conditions like the Covid-19 pandemic. Carroll believes that EPR is poised for favorable results as the headwinds diminish. Despite concerns about EPR’s exposure to theaters, management aims to reduce this over time. The analyst also noted that the company’s high dividend yield is well-protected by its strong financials.
Energy Transfer, a limited partnership in the midstream energy sector, offers a dividend yield of 8%. Stifel analyst Selman Akyol has expressed optimism about the company’s growth prospects, particularly in the natural gas space. With the rising demand for natural gas in data centers, Energy Transfer is well-positioned to capitalize on this trend. Akyol reiterated a buy rating on the stock with a price target of $19, highlighting the company’s solid footing and potential for growth in key markets like Texas and Florida.
Retail giant Walmart continues to impress investors with its strong financial performance and commitment to rewarding shareholders. Following its upbeat second-quarter results, Walmart raised its full-year outlook and increased its dividend for the 51st consecutive year. Baird analyst Peter Benedict reiterated a buy rating on the stock, citing Walmart’s market share gains and focus on value and convenience. Benedict also highlighted the company’s investments in areas like automation and generative AI, which have contributed to improved returns on investment.
Dividend-paying stocks present a compelling investment opportunity, especially in a low-interest-rate environment. By heeding the insights of top analysts and selecting companies with strong financials and growth potential, investors can build a robust portfolio of dividend stocks. Companies like EPR Properties, Energy Transfer, and Walmart exemplify the potential of dividend stocks to deliver attractive returns while providing a source of passive income for investors.
Leave a Reply