Top Dividend Stocks Recommended by Wall Street Analysts

Enbridge, an energy infrastructure company, is considered an attractive dividend stock by Wall Street’s top experts. The company has a track record of increasing its dividend for 29 years and currently boasts a dividend yield of 7.7%. Analysts are particularly optimistic about Enbridge following recent developments, such as the regulatory approval of the acquisition of the East Ohio Gas Company. RBC Capital analyst Robert Kwan reiterated a buy rating on ENB stock, highlighting the company’s extended growth targets through 2026. Enbridge now expects earnings before interest, taxes, depreciation, and amortization growth in the range of 7% to 9% from 2023 through 2026, compared to the previous growth outlook of 4% to 6%. Kwan’s success rate and average return make him a trusted analyst among the many tracked by TipRanks.

Bank of America (BAC)

Bank of America, one of the leading banking institutions worldwide, is another top dividend pick recommended by Wall Street analysts. BAC returned $12 billion to shareholders through dividends and share repurchases in 2023 and currently offers a dividend yield of 2.6%. RBC Capital analyst Gerard Cassidy reiterated a buy rating on BAC stock, citing the leadership of chairman and CEO Brian Moynihan and the bank’s strong balance sheet with solid capital ratios. Cassidy also mentioned BAC’s growing deposit market share, dominant position in global capital markets, and attractive valuation. With a focus on profitability and mobile offerings, BAC is expected to provide consistent dividend payments even through downturns. Cassidy’s success rate and average return further solidify his analysis as valuable among TipRanks-tracked analysts.

PepsiCo (PEP)

PepsiCo, a snack food and beverage giant, rounds out the top dividend picks recommended by Wall Street experts. Despite analysts noting lower-than-expected revenues in the fourth quarter, PepsiCo announced a 7% increase in its annualized dividend, marking the 52nd consecutive year of dividend payment growth. The company currently offers a dividend yield of 2.9% and is targeting significant cash returns to shareholders in 2024. Morgan Stanley analyst Dara Mohsenian upgraded PepsiCo stock to buy from hold, emphasizing the growth prospects of the company’s international business. Mohsenian sees a potential inflection point in the company’s performance, making PepsiCo an attractive investment opportunity. With a successful track record and impressive average returns, Mohsenian’s analysis is valued by investors looking for reliable guidance.

Investors looking for stability and consistent income in their portfolios can consider these top dividend stocks recommended by Wall Street’s top analysts. Enbridge, Bank of America, and PepsiCo each offer unique opportunities for growth and income, backed by thorough research and analysis. By following expert recommendations and conducting further due diligence, investors can make informed decisions to achieve their financial goals.