Top Wall Street analysts favor these dividend stocks for better returns – NBC New York

By DailyBubble On Jun 30, 2024 13 0

Investors looking to strengthen their portfolios and increase returns often turn to dividend-paying stocks. These stocks provide steady payments backed by solid financials, making them attractive options for many investors. Here are three dividend stocks recommended by top analysts on TipRanks.

First up is Darden Restaurants (DRI), which owns popular dining brands like Olive Garden and LongHorn Steakhouse. Despite slightly missing sales expectations in the fourth quarter of fiscal 2024, Darden announced a dividend hike of nearly 7%, bringing the quarterly dividend to $1.40 per share. Analysts are bullish on DRI, with BTIG analyst Peter Saleh reiterating a buy rating and a price target of $175. Saleh believes Darden can achieve its targeted return metrics through factors like modest price increases and advertising initiatives.

Next is International Seaways (INSW), a tanker company that offers energy transportation services. The company recently paid a combined dividend of $1.75 per share, representing 60% of its first-quarter adjusted net income. Analysts like Stifel’s Benjamin Nolan are optimistic about INSW’s prospects, citing a strong tanker market and increased cash flows. Nolan expects International Seaways to continue delivering high supplemental dividends.

Lastly, banking giant Citigroup (C) offers a quarterly dividend of 53 cents per share, with a yield of 3.3%. Following a Services Investor Day event, Goldman Sachs analyst Richard Ramsden reiterated a buy rating on Citi stock and raised his price target. Ramsden is confident in Citigroup’s transformation efforts and revenue growth across all core businesses. The analyst believes Citi’s Services business is well-positioned for market share gains driven by investments in technology and innovative offerings.

Overall, these three dividend stocks offer investors the potential for steady returns and long-term growth, making them worth considering for a well-rounded investment portfolio.