Top Dividend-Paying Stocks Recommended by Wall Street Analysts

One of the top dividend-paying stocks recommended by Wall Street analysts is tech giant IBM. Despite announcing mixed first-quarter results, IBM is considered a strong pick for investors looking for stable income. The company exceeded earnings expectations, while revenue fell short due to macroeconomic uncertainties. IBM recently acquired cloud software maker HashiCorp for $6.4 billion and paid dividends of $1.5 billion in the first quarter. With a current yield of about 4%, IBM is an attractive option for income investors.

Another dividend-paying stock to consider is toy maker Hasbro. With better-than-expected first-quarter earnings and a dividend yield of 4.7%, Hasbro is on the radar of Wall Street analysts. Following positive meetings with company management, JPM analyst Christopher Horvers upgraded Hasbro stock to buy and raised the price target. Horvers believes that Hasbro’s cost efficiency efforts and digital gaming prospects will drive growth in the second half of 2024 and the first half of 2025. The toy industry is expected to experience improved growth, and Hasbro is well-positioned to benefit from this trend.

Lastly, big-box retailer Target is a top pick for dividend investors. Despite slightly missing earnings per share expectations in the first quarter, Target remains a solid choice for income seekers. The company paid $508 million in dividends to shareholders and offers a dividend yield of 2.8%. Baird analyst Peter Benedict remains bullish on Target, noting that the company’s strategy for fiscal 2024 includes an investment in value and affordability through low pricing. Benedict believes that Target’s focus on restoring positive comparable sales growth is achievable, particularly in the fiscal second quarter. With a buy rating and a price target of $190, Target presents a compelling risk/reward profile for investors.

Dividend-paying stocks are an attractive option for investors seeking stable income and potential growth. Companies like IBM, Hasbro, and Target offer dividend yields and growth prospects that appeal to Wall Street analysts. By following the recommendations of top pros and conducting thorough analyses, investors can make informed decisions when selecting dividend stocks for their portfolios. It is essential to consider a company’s earnings growth potential, dividend history, and future outlook before making investment decisions in today’s turbulent markets.