Top Wall Avenue analysts pick these dividend stocks for enhanced returns

The Coca-Cola Company label is being displayed at a Unusual twelve months’s pleasing in Kyiv, Ukraine, on December 31, 2023.

STR | Nurphoto | Getty Photos

Investors looking to enhance their portfolio returns can opt for a combination of assert and dividend stocks.

Selecting the honest dividend stock by inspecting more than one factors might perchance perchance be complex for merchants. Then again, suggestions from analysts can relieve present merchants’ learn and handbook them toward profitable dividend stocks from companies with stable fundamentals.

Right here are three intriguing dividend stocks, per Wall Avenue’s prime consultants on TipRanks, a platform that ranks analysts in step with their previous performance.

Coca-Cola

This week’s first dividend pick is beverage big Coca-Cola (KO). Earlier this month, the firm reported fourth-quarter income that surpassed expectations and earnings that had been per analysts’ estimates. Bigger prices helped Coca-Cola offset the weak spot in North American volumes.

Coca-Cola paid $8 billion in dividends in 2023 and made rep share repurchases price $1.7 billion. The firm, lately introduced a virtually 5.4% lengthen in its quarterly dividend per share to $0.485. This lengthen marked the 62nd consecutive twelve months of dividend hikes for the firm. With an annual dividend of $1.94 per share, KO stock affords a yield of greater than 3%.

Following the Q4 2023 outcomes, RBC Capital analyst Nik Modi reiterated a aquire rating on Coca-Cola stock with a label target of $65. The analyst illustrious that KO’s organic income assert used to be fueled by the impressive upward push in pricing and resilient volumes, with the firm exceeding the organic assert expectations for five out of six segments.

Whereas greater marketing investments and a stable dollar weighed on Coca-Cola’s earnings, the analyst expects the firm’s fundamentals to live robust this twelve months.

“We yelp the firm’s most recent restructuring and organizational compose adjustments will facilitate better allocation of sources, which can within the raze lead to greater share good points and white space expansion,” mentioned Modi.

Modi ranks No. 615 among greater than 8,700 analysts tracked by TipRanks. His rankings had been a success 60% of the time, with each delivering an common return of 6.3%. (Glance Coca-Cola Insider Trading Articulate on TipRanks)

Blue Owl Capital

Next up is Blue Owl Capital (OWL), an asset manager with resources under administration of greater than $165 billion as of Dec. 31, 2023. On Feb. 9, the firm introduced its quarterly outcomes and declared a dividend of 14 cents a share, payable on March 5. The firm also introduced about a 29% hike in its annual dividend for 2024 to 72 cents per share (18 cents a share per quarter). Blue Owl has a dividend yield of 3.1%.

In response to the print, Deutsche Bank analyst Brian Bedell reaffirmed a aquire rating on OWL stock and increased the label target to $20 from $17. The analyst thinks that the firm’s fourth-quarter outcomes had been “very perfect,” with a stable income beat, pushed by improved administration charges and greater-than-expected transaction charges.

Following the 25% assert in charge-related earnings, or FRE, in 2023, the analyst thinks the firm is smartly-positioned to say no longer decrease than a 25% FRE lengthen this twelve months as smartly. The analyst highlighted administration’s commentary about reaching the dividend unbiased of $1 per share by 2025, with a line of see into generating an additional $1 billion in income.

“Most importantly, after raising the dividend by 29% to $0.72 p.s. [per share] for 2024, mgmt portrayed high visibility into generating stronger earnings energy to red meat up a dividend shut to $1.00 p.s. in 2025 (we mannequin $0.91),” mentioned Bedell.

Bedell holds the 593rd way among greater than 8,700 analysts tracked by TipRanks. His rankings had been a success 54% of the time, with each delivering an common return of 8.5%. (Glance Blue Owl Hedge Fund Articulate on TipRanks)

Chevron

Oil and gasoline big Chevron‘s (CVX) earnings declined last twelve months due to the decrease oil prices when compared to the elevated phases considered in 2022. Nonetheless, the firm impressed merchants with main shareholder returns of $26.3 billion. This quantity incorporated about $14.9 billion in share buybacks and $11.3 billion in dividends.

Extra, Chevron, a dividend aristocrat, introduced an 8% upward push in its quarterly dividend to $1.63 per share, payable on March 11. The stock has a yield of 4.2%.

Noting Chevron’s Q4 beat on adjusted earnings per share, Goldman Sachs analyst Neil Mehta reiterated a aquire rating on the stock with a label target of $180. The analyst highlighted administration’s optimistic update on the Tengizchevroil, or TCO, expansion project in Kazakhstan.

Whereas share repurchases within the principle quarter of 2024 is susceptible to be little due to the the ongoing Hess deal, Mehta remains bullish about Chevron’s “leading capital returns profile, the achieve we query CVX to return ~$29.3 bn in 2024/2025, representing ~10% yield vs US Most main seek for common of ~8%.”

Other than Chevron’s intriguing capital returns profile, Mehta shall be optimistic about the firm’s 2025 upstream volume and cash bolt collectively with the circulation inflection because the TCO project ramps.

Mehta ranks No. 351 among greater than 8,700 analysts tracked by TipRanks. His rankings had been a success 62% of the time, with each delivering an common return of 10.7%. (Glance Chevron Financials on TipRanks)

Don’t omit these tales from CNBC PRO: