Investing in dividend stocks can provide investors with both stock appreciation and a steady cash flow. Some companies offer lower yields but have the potential for higher total returns compared to those with high yields but limited growth opportunities. Wall Street analysts often favor companies that show growth potential, and here are three dividend stocks that have received positive ratings from Wall Street analysts.
Visa (V):
Visa is rated as a Strong Buy by analysts, with a projected 13% upside from current levels. The highest price target for Visa is $340 per share, suggesting a potential 22% rally. The company’s business model is straightforward, making a percentage of each Visa credit or debit card transaction. Visa’s recent financial results have shown a 10% year-over-year increase in revenue and GAAP net income. The stock has a 30.9 P/E ratio, a 0.74% yield, and has maintained an annualized dividend growth rate of 18.05% over the past decade.
Walmart (WMT):
Walmart is also rated as a Strong Buy by analysts, with an estimated 9% upside from current levels. The highest price target for Walmart is $75.99 per share, indicating a potential 26% gain. The company has a vast global presence with over 10,500 stores in 19 countries. Walmart’s e-commerce sales have been growing, with a 23% year-over-year increase in global e-commerce sales in the most recent quarter. The stock offers a 1.37% yield and recently raised its dividend by 9%, marking its 51st consecutive year of dividend increases.
Broadcom (AVGO):
Broadcom has a consensus Strong Buy rating from analysts, with a projected 9% return based on the average price target. Some analysts believe the stock could reach as high as $1,720 per share, indicating a potential 29% gain. The semiconductor firm has been delivering strong returns, with a 22% year-to-date increase in its stock price. Broadcom’s revenue growth in Q1 2024 was 34% year-over-year, driven in part by the VMware acquisition. The stock has a 1.57% yield and has maintained an annualized dividend growth rate of 17.49% over the past five years.
Overall, these three dividend stocks have received positive ratings from Wall Street analysts and offer potential for growth and steady income for investors.