Top Wall Street analysts expect these dividend stocks to increase total returns

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A Home Depot location in Encinitas, California.

Mike Blake | Reuters

As recently as 2023, investors can strengthen their portfolios by adding select dividend funds into the mix.

Paying dividends gives the investment an opportunity for value appreciation and potential income that can increase total income.

By the way, here are five beautiful ones dividend stocksaccording to Wall Street’s top experts on TipRanks, a platform that ranks analysts in the past.

First on this week’s list Energy Transfer (AND) is a limited company that operates a diversified portfolio of energy assets in the US, with approximately 125,000 miles of pipeline. And recently the acquisition will be completed Crestwood Equity Partners.

In October, ET announced a quarterly cash distribution $0.3125 per common unit for the third quarter, which was paid on the 20th of November. The stock has a 9% dividend payout ratio.

RBC Capital analyst Elvira Scotto It said Energy Transfer delivered solid performance, with adjusted earnings before interest, taxes, depreciation and amortization exceeding the consensus estimate by 7%. The analyst also noted the growth in the 2023 midpoint of the adjusted EBITDA outlook by $300 million.

Scotto expects the acquisition of Crestwood to offer commercial synergies. In addition, it shows that ET intends to maintain a strong balance sheet, aiming for a pressure of 4.0-4.5x debt/EBITDA. Also, ET intends to continue to pay back units through increased distribution and potential buybacks.

“With large revenue growth projects, accretive acquisitions and an integrated asset footprint across hydrocarbons and basins, we believe ET can generate significant cash flow in the coming years,” said Scotto.

Scotto increased his price target on Energy Transfer to $19 from $18 and updated his earnings estimate, calling the stock a compelling investment opportunity. Order no. 54 among more than 8,700 analysts surveyed by TipRanks. His ratings were profitable 65% of the time, with each delivering an average return of 18.1%. (See Industry insider trading action series on TipRanks)

Scott is also upbeat about another limited company; Sunoco (THE SUN) is one of the leading motor fuel companies in the US

For the third party, Sunoco announced quarterly cash distribution of $0.8420 per uniton Nov. 20 The company’s dividend yield stands at 6.3%.

After Sunoco posted its fourth earnings report, Scott raised his price target for Suno stock to $57 from a $51 target to reflect a higher earnings outlook. Analysts maintained a buy rating, saying the company’s volumes and margins exceeded their estimates.

The analyst believes that the company’s scale, procurement capabilities and lower cost structure compared to the industry could deliver it beyond the edge of the industry’s breakdown.

“SOL continues to achieve a strong balance sheet coming out of 3Q23 with leverage of 3.9x and total liquidity of $1.1BN, which provides SOL with great financial flexibility to pursue growth opportunities through acquisitions.”

Overall, Scott remains bullish on Sunoco due to its solid cash flows and focus on lean margins and cost management. (See Sunoco hedge funds Trading Action on TipRanks)

The next stock dividend VICI Properties (I won), places the targets in the diam. VICI owns a solid portfolio of gaming, entertainment, and leisure properties, including the iconic Caesars Palace Las Vegas and MGM Grand properties.

He was declared to the third party of the county cash dividend of $0.415 per sharecontributing to an increase of 6.4%. VICI offers a dividend yield of 5.4%.

In a recent research note, Stifel analyst Simon Yarmakwho ranked 573rd out of more than 8,700 analysts polled by TipRanks, revised his rating on VICI stock and called it one of his top picks in the North American Reits sector.

Yarmak noted that VICI performed well in both sports and non-sports categories. VICI added the colonists in a firm place.

“VICI has negotiated the second escalators in its agreements, which provide strong internal growth. Many of these escalators are associated with CPI growth that is not capable (50.0% of income) and therefore VICI should benefit from the significance of the release of the spread in the environment of growth above the average inflation. noted Yarmak.

The analyst estimates that the rental spread will generate about $71 million in 2024 income, which is not captured in 2023 income. VICI expects to post the best growth of the year 2024 in the triple net sector, with close to 4.5% to 5.0% of adjusted earnings from operations.

Yarmak’s ratings were successful 54% of the time, with each delivering an average return of 8%. (See I WON Good Action on TipRanks)

We move to a better home seller He drove home (HD). The crowd exceeded the analysts” fiscal third quarter estimate despite a decline in sales due to pressure in some big-ticket, discretionary categories. However, the company has narrowed its outlook for a full year due to the pressures of the macro.

For the third quarter, the company declared a cash dividend $2.09 per shareto be paid in Dec. 14. HD traditional yield stands at 2.6%.

After the third-quarter fiscal results, JPMorgan analyst Christopher Horvers He lowered his price target for HD stock to $318 from $332 but maintained a buy rating, saying Home Depot is managing well against a lens backdrop.

The analyst thinks that the management’s tone was less pessimistic in the second quarter, but not worse than the first quarter. While the home improvement category is expected to remain strong in the first half of 2024, comparable sales are projected to recover in the second half.

“We believe HD is one of the best long-term stories in the company’s story given the company’s exceptional sales and margin initiatives, the duopoly/AMZN conflicting nature of the industry, and significant financial and operating leverage that amplifies EPS growth in better sales environments,” Horvers said.

Horvers orders no. 520 among more than 8,700 analysts on TipRanks. His estimates were profitable 61% of the time, with each delivering an average return of 8%. (See Home Depot’s Technical Analysis on TipRanks)

We finally look at the big-box retailer Walmart (WMT). Earlier this year the company announced a 2% increase in its annual dividend per share to $2.28. This was noted 50th consecutive year of dividend hikes for the company giving Walmart the tag of the divided king. The stock offers a dividend yield of 1.5%.

Recently the salesman beat the guesser fiscal third-quarter earnings and let it be ugly. But the consumer is cautious about consumer spending.

Following in his footsteps, the Guggenheim analyst Robert Drbul He reaffirmed a buy rating on the stock with a price target of $180. The analyst noted that Walmart is witnessing solid growth in sales through physical stores and digital channels. It increased full-year sales estimates to reflect the upbeat performance of Q3, but maintained its fiscal 2024 and 2025 estimates through adjusted portions from additional cost pressures.

“We continue to believe Walmart will do well in an uncertain macro environment with its price and value proposition and increased convenience and variety,” said Drbul.

The analyst added that given the stock’s 1.5% dividend yield and that it trades at 22.3 times its fiscal 2025 EPS estimate of $7, WMT stock offers something for the income, value and growth investor.

Drbul is ranked 652 among more than 8,700 analysts on TipRanks. His assessments were successful 59% of the time, with each delivering an average return of 5.9%. (See Walmart Financial Statements on TipRanks).

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