U.S. stocks have been under pressure recently amid fears of an economic slowdown, but dividend-paying stocks can help investors weather the period.
Investors looking for stocks with strong financials and the ability to consistently pay dividends can consider the advice of Wall Street's top analysts.
Here are three attractive dividend stocksaccording to Wall Street's Top Professionals TipRanks is a platform that ranks analysts based on their past performance.
Pfizer
healthcare giant Pfizer (PTFE) is the first dividend stock of the week. The company announced better-than-expected second-quarter results, helped by its cost-cutting measures and solid sales of non-COVID-19 products. Pfizer raised its full-year guidance, reflecting strong demand for its non-COVID-19 business, which has benefited from several acquired drugs and recently launched products.
In the first six months of 2024, Pfizer $4.8 billion returned Distributed to shareholders through dividends. The stock's dividend yield is 5.9%.
Goldman Sachs analysts react to upbeat second-quarter results Chris Shibuya Reaffirmed a Buy rating on PFE stock and raised the price target to $34 from $31. The analyst said that while he expected Pfizer to raise its outlook, the increase was larger than he expected.
The analyst raised his revenue forecast to reflect the strength of PFE's heart disease drug Vyndaqel and cancer treatment Padcev. He also raised his earnings per share forecast due to improved revenue expectations and higher gross margins.
Shibuya said that while management didn't provide any major updates related to the company's obesity program, he did see “room for further cuts and improved quarterly results throughout the remainder of the year.” He also noted that the company's capital allocation priorities, primarily dividends and debt reduction, remain unchanged.
Shibutani ranks No. 462 among more than 8,900 analysts tracked by TipRanks. His ratings were profitable 46% of the time, with an average return of 13%. (look Pfizer stock chart on prompt ranking)
Civitas Resources
We turn to oil and gas producers Civitas Resources (national). On August 1, the company announced its second quarter results. Declared quarterly dividend of $1.52 per sharepaid on September 26th.
The amount includes a basic dividend of 50 cents per share and a variable dividend of $1.02 per share.
CIVI's shareholder return policy involves paying At least 50% free cash flow (after payment of basic dividends) as the variable component. Interestingly, the company has now revised its shareholder return plan to provide more flexibility in how it rewards shareholders with variable returns. Starting in the third quarter of 2024, the variable portion of CIVI will consist of a combination of repurchases and dividends, to be distributed at the discretion of management and the Board of Directors. CIVI also announced a new share repurchase program of up to $500 million.
Mizuho analysts after announcing second-quarter results William Janela Reaffirmed a Buy rating on CIVI stock with a price target of $98, calling the company a top pick. The analyst said Civitas delivered another quarter of solid execution on Permian assets it acquired in 2023.
Commenting on the revised shareholder return plan, Janela said the plan gives the company “more flexibility with buybacks, which should resonate with investors and set the stage for meaningful FCF (free cash flow) expansion in the second half of 2024.” Make a positive contribution.
The analyst highlighted that Civitas will lower its capital expenditure budget for this year by about 3% as it consolidates its Permian Basin acquisitions, resulting in lower well costs. Additional well cost savings in the DJ Basin also helped the company lower its 2024 capital expenditure forecast.
Janela is ranked No. 406 among more than 8,900 analysts tracked by TipRanks. His rating success rate is 52%, with an average return of 25.6%. (look Civitas Resources Share Buyback on prompt ranking)
International Business Machines Corporation
Finally a tech giant International Business Machines Corporation (International Business Machines Corporation), which recently impressed investors with better-than-expected second-quarter results. The company sees a solid generative AI business and now expects full-year free cash flow to exceed $12 billion, compared with the previous forecast of about $12 billion.
IBM is back US$1.5 billion Distributed dividends to shareholders in the second quarter. The stock's dividend yield is 3.5%. IBM's dividend is supported by strong cash flow. The company is confident in its growth potential, supported by its diversified business model and hybrid cloud and artificial intelligence strategies.
After the report was released, Evercore analysts Amit Dayanani Reiterate a buy rating on IBM stock with a price target of $215. He noted that growth in the company's software and infrastructure businesses was partially offset by pressure on the consulting business due to soft discretionary spending by corporate clients. The analyst added that overall second-quarter results were better than expected.
Commenting on shareholder returns, Daryanani noted that the company did not conduct any share repurchases in the second quarter but remains “committed to a stable and growing dividend.” He expects IBM to allocate more money to mergers and acquisitions than to stock buybacks.
Daryanani ranks No. 429 among more than 8,900 analysts tracked by TipRanks. His ratings were profitable 54% of the time, with an average return of 10.4%. (look IBM ownership structure on prompt ranking)