Investors Seeking Lucrative Dividend Picks Amid Lower Interest Rates
Investors can benefit by creating a diversified portfolio of growth and dividend stocks, enhancing their overall returns through capital appreciation and regular income. With the Federal Reserve slashing interest rates by another 25 basis points, several investors are looking for lucrative dividend picks as the attractiveness of these stocks increases in a lower interest rate environment.
To this end, investors can track the recommendations of top Wall Street analysts to select reliable dividend stocks with solid fundamentals. Here are three dividend-paying stocks, highlighted by Wall Street’s top pros as tracked by TipRanks, a platform that ranks analysts based on their past performance.
Walmart (WMT) has raised its dividend for 51 consecutive years and offers a dividend yield of 0.9%. Tigress Financial analyst Ivan Feinseth reiterated a buy rating on WMT stock and increased the price target to $115 from $86. Feinseth highlighted the company’s continued growth in e-commerce, solid brand equity, and increase in Walmart+ memberships.
Gaming and Leisure Properties (GLPI) is a real estate investment trust (REIT) that leases properties to gaming operators under triple-net lease arrangements. The company offers an attractive yield of 6.5% and announced a dividend of 76 cents per share for the fourth quarter, reflecting a 4.1% year-over-year increase. RBC Capital analyst Brad Heffern highlighted GLPI’s strong balance sheet, probability of an enhanced credit rating, and attractive valuation.
Ares Management (ARES) is an alternative investment manager that offers investment solutions across asset classes like real estate, credit, private equity, and infrastructure. The company offers a dividend yield of 2.1% and announced a quarterly dividend of 93 cents per share for its Class A common stock. RBC Capital analyst Kenneth Lee increased the price target for ARES stock to $205 from $185 and reiterated a buy rating, calling ARES his “favorite name” in the U.S. asset managers sector.
