The Stock Market’s Uncertainty and the Case for Dividend-Paying Stocks
The stock market has been on a roll since President Donald Trump took office, but uncertainty remains over tax cuts and tariffs. Amidst this uncertainty, dividend-paying stocks can offer investors a sense of security and stability. To find the right dividend stocks, investors can look to the insights of top Wall Street analysts, who evaluate a company’s ability to pay consistent dividends and its solid cash flows.
Three dividend-paying stocks have been highlighted by Wall Street’s top analysts, tracked by TipRanks, a platform that ranks analysts based on their past performance.
The first stock is AT&T (T), a telecommunications company that recently announced a quarterly dividend of $0.2775 per share, payable on February 3. AT&T stock offers a dividend yield of nearly 5%. Argus Research analyst Joseph Bonner upgraded AT&T stock to buy from hold, with a price target of $27, citing the company’s strategy and long-term financial goals. Bonner expects AT&T’s cost-saving efforts, network modernization, and revenue acceleration to gradually reflect in its performance.
The second stock is Chord Energy (CHRD), an independent oil and gas company operating in the Williston Basin. Under its capital returns program, Chord Energy aims to return more than 75% of its free cash flow. The company recently paid a base dividend of $1.25 per share and a variable dividend of 19 cents per share. Mizuho analyst William Janela reiterated a buy rating on CHRD stock with a price target of $178, calling CHRD a Top Pick. Janela expects Chord Energy to show enhanced capital efficiencies on a year-over-year basis and a more defensive balance sheet.
The third stock is Diamondback Energy (FANG), an independent oil and natural gas company focused on reserves in the Permian Basin. The company paid a base dividend of 90 cents a share for Q3 2024. Mizuho analyst Nitin Kumar expects FANG to report Q4 2024 EBITDA, free cash flow, and capital expenditure of $2.543 billion, $1.243 billion, and $996 million, respectively. Kumar reaffirmed a buy rating on FANG stock with a price target of $207, highlighting the company’s strong execution and modest cost savings.
These dividend-paying stocks can offer investors a sense of stability and security, even in an uncertain market. By looking to the insights of top Wall Street analysts, investors can find dividend stocks that have a strong track record of paying consistent dividends and solid cash flows.