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DailyBubble News

Seeking at Least 8% Dividend Yield? Analysts Offer 2 Dividend Stocks to Buy

The recent inflation report, which was worse than expected, raised concerns among investors about the Federal Reserve’s interest rate plans for the year. However, the central bank’s decision to keep rates steady in its latest announcement eased fears of an imminent hike. Coupled with moderate gains in Q1 earnings reports, this led to a rebound in stocks as market confidence was restored.

Despite these positive developments, JPMorgan’s chief market strategist Marko Kolanovic remains cautious about the future. He highlighted concerns about potential market downturns, the balance between growth and policy, steep earnings projections, and positioning unwind.

In such a scenario, investors may turn to dividend stocks as a defensive play. These stocks offer reliable passive income streams, providing stability even during market downturns.

Two stocks worth considering are Energy Transfer LP (ET) and Black Stone Minerals LP (BSM). Energy Transfer is a leading midstream company with a strong presence in North America’s energy infrastructure. Despite mixed results in its last quarterly report, the company has been steadily increasing its dividend payment, currently offering an attractive 8% yield. Analysts are optimistic about Energy Transfer’s growth potential, with a Buy rating and a price target suggesting a 19.5% upside.

Black Stone Minerals LP is a limited partnership mineral rights company that generates income from royalties on land holdings in energy-rich regions. The company’s strategic acquisitions and expertise have resulted in consistent distributable cash flow, supporting a generous dividend yield of 9.15%. Analysts see potential for growth in Black Stone’s royalty position, with a Buy rating and a price target indicating a 16% potential gain.

Overall, both Energy Transfer and Black Stone Minerals offer solid defensive profiles with attractive dividend yields, making them worth considering for investors looking for stability in uncertain market conditions.

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