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Blue-Chip Dividend Stocks Poised for Growth: Verizon, Medtronic, Hasbro, Dell and Walmart Offer Attractive Yields and Payout Growth Potential

  • Verizon offers an attractive 8% dividend yield after 17 years of consecutive dividend increases. Analyst sees wireless industry stabilization helping Verizon.

  • Medtronic has a 3.5% dividend yield and 46 years of consecutive dividend growth. Company is recovering from pandemic disruptions.

  • Hasbro's dividend has growth potential with higher expected cash flow. Toymaker is under new leadership after a period of underperformance.

  • Dell has room for capital return enhancements after strong quarter. Company returned $525M to shareholders last quarter.

  • Walmart raised its dividend for the 50th straight year. Retailer is gaining market share through value and convenience.

cnbc.com
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Goldman Sachs and Morgan Stanley analysts recommend stocks like Nvidia, Microsoft, Alphabet, Amazon, Meta Platform, Salesforce, and Apple, while companies like Zoom, Baidu, Campbell, Aramark, Hasbro, Intuit, Visa, GXO Logistics, Upstart, and SoFi receive price target updates or ratings changes from various financial institutions.
Investors can earn returns in stocks through share-price appreciation or dividend payments, and one way to find dividend-paying stocks with price upside is by reviewing Wall Street analyst ratings on stocks and comparing them to their dividend yields.
Dividend investors often face a choice between high-yield stocks that offer more immediate income and low-yield stocks with faster dividend growth, but finding stocks that offer both can be challenging, with only a few rare "dividend unicorns" meeting these criteria, such as Arbor Realty Trust, Clearway Energy, NextEra Energy Partners, and VICI Properties.
### Summary Wall Street analysts recommend dividend stocks as a defensive move against potential economic downturns, highlighting Brookfield Renewable Partners and Diamondback Energy as appealing options with promising outlooks.
Dividend stocks have a track record of outperforming non-dividend paying stocks, and investors can generate $100 in monthly dividend income by investing in AGNC Investment, PennantPark Floating Rate Capital, and Realty Income.
High-quality dividend stocks, which have been market favorites in recent years, are currently not receiving much respect but now may be a good time to buy.
Certain stocks, such as Abbott Laboratories, Johnson & Johnson, and Coca-Cola, possess strong brands, diverse portfolios, and reliable dividends, making them excellent investments regardless of market conditions.
Bill Gates has invested in Schrödinger, an AI-focused drug discovery company, and Wall Street analysts are bullish about its stock, with a potential upside of 67% over the next 12 months, but there are some concerns about the company's revenue, profitability, and customer collaborations.
Cisco, the old networking and software giant, is making a comeback in the generative AI market with new chip designs and partnerships, making it a promising stock for dividend investors. Despite the slowdown in growth, Cisco remains profitable and offers a high dividend yield, making it a solid long-term investment.
Schlumberger's stock performance is regarded as very good, while Avnet's stock is undervalued and profitable; Sea's stock is considered risky and should be avoided, Joby Aviation's stock is recommended to be sold due to heavy losses, and Discover Financial stock is perceived as cheap but it is advised to invest in Mastercard instead; finally, Verizon's stock is compared to a low-yielding bond.
High-dividend stocks can provide retirees with a source of income and potential appreciation, and historically, higher-yielding stocks have offered better returns than dividend growth and the broader market.
The Southern Company, Oneok, and Public Storage are exceptional dividend stocks that have consistently paid stable dividends and increased their payouts, making them highly attractive for investors looking for reliable and growing income.
Three dividend stocks worth considering now are American Electric Power (AEP), Dominion Energy (D), and RTX, as they offer steady dividend payments, lower volatility, and attractive yields, making them suitable choices for passive income and capital preservation during a bear market.
Broadcom, Microchip, and Ubiquiti are three technology companies with dividend stocks that offer growth potential and long-term investment opportunities.
Three stable dividend stocks that can be solid investments for retirement are Bristol Myers Squibb, Apple, and Verizon Communications, with Bristol Myers Squibb offering a high yield and a diverse business, Apple having potential for future dividend increases, and Verizon Communications having the highest yield and a track record of increasing dividends.
Investors may want to consider increasing exposure to dividend stocks, such as those in the S&P Dividend Aristocrats, as rising long-term interest rates have the potential to push the broad stock market down again.
Investing in dividend stocks has historically provided higher returns than stocks that don't pay dividends, and three high-yield stocks with sustained payouts that can generate $500 in annual dividend income from a $5,400 investment include AT&T, PennantPark Floating Rate Capital, and Innovative Industrial Properties.
Summary: Morgan Stanley recommends investors turn to dividend-paying stocks, as they have historically outperformed non-dividend stocks during market downturns. They have identified 26 dividend stocks that could see shares rise up to 85% in the coming months.
Verizon Communications is set to trade ex-dividend, with shareholders eligible to receive a dividend of US$0.67 per share on November 1st, but investors should be cautious as the company has seen a decline in earnings and a high payout of free cash flow.
Amid the unpredictability of the stock market, investors can find stability and passive income through the steady dividends offered by certain dividend stocks, such as Verizon Communications Inc. and Energy Transfer LP, which both boast yields of over 8% and have been recommended by financial giant Morgan Stanley.
Investment platform The Motley Fool suggests four dividend stocks to consider adding to your portfolio in October for stability and long-term investment upside.
Dividend stocks are a good option for investors seeking stable income or a hedge against inflation, but it's important to choose stocks with above-market dividend yields and strong dividend growth rates for optimal capital appreciation and income generation.
Dividend-paying stocks, such as Exxon Mobil, Coterra Energy, Brookfield Infrastructure Partners, American Electric Power, and Darden Restaurants, are being recommended as attractive options for investors due to their strong earnings, cash flows, and dividend growth.