As the Federal Reserve plans a September interest rate cut, dividend-paying stocks are gaining attention as potential outperformers. This is due to the fact that dividend yields on these stocks may appear more attractive compared to returns on other income-generating assets, such as bonds. Identifying the right dividend stocks from a wide array of companies can be a challenge for investors. Therefore, relying on recommendations from top analysts on platforms like TipRanks can be beneficial in selecting strong dividend stocks with solid financials.
EPR Properties, a real estate investment trust (REIT) focusing on experiential properties like movie theaters, amusement parks, and ski resorts, offers a dividend yield of 7.3%. RBC Capital analyst Michael Carroll recently upgraded EPR to buy from hold, raising the price target to $50. His optimism stems from the company’s ability to navigate through tough times, such as the Covid-19 pandemic. Carroll predicts the theatrical box office will pick up, leading to stronger earnings for EPR. Despite concerns about exposure to theaters, management plans to reduce this risk over time. With AMC, a major tenant, taking steps to improve its financial situation, EPR’s high dividend yield is well-protected by a solid balance sheet.
Energy Transfer (ET), a limited partnership specializing in midstream energy, boasts a dividend yield of 8%. Analyst Selman Akyol from Stifel lauded ET’s Q2 results and highlighted growth opportunities in the Permian to Gulf Coast region. The company’s positive outlook on natural gas, especially for data centers, positions it well for growth. Akyol emphasized ET’s rising demand from utilities in Texas and Florida, where data centers and population growth present lucrative prospects. His buy rating on ET stock with a price target of $19 reflects confidence in its strategic positioning.
Walmart: A Retail Giant Rewarding Shareholders
Retail powerhouse Walmart impressed investors with strong Q2 fiscal 2025 results and an optimistic full-year outlook. The company’s dividend and share repurchase programs continue to benefit shareholders, having paid over $3 billion in dividends and repurchased shares worth $2.1 billion in the first half of the year. With a consistent history of dividend increases, Walmart raised its dividend by 9% earlier this year. Baird analyst Peter Benedict reiterated a buy rating on Walmart, citing its market share gains and transformation efforts that contributed to solid growth. Benedict’s positive outlook is supported by Walmart’s increased return on investment and strategic investments in automation and generative AI.
Identifying top dividend stocks recommended by Wall Street analysts involves thorough research and reliance on expert recommendations. Companies like EPR Properties, Energy Transfer, and Walmart offer compelling dividend yields and growth potential, making them attractive picks for income-seeking investors. By analyzing the opinions of trusted analysts, investors can make informed decisions when selecting dividend stocks to enhance their portfolios.
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