Investors are constantly searching for dividend-paying stocks that can enhance their portfolios and generate strong returns. Darden Restaurants (DRI) is one such company that stands out among Wall Street’s top pros on TipRanks. With popular brands like Olive Garden, LongHorn Steakhouse, and Yard House under its belt, Darden recently announced its fourth-quarter results, which showed a mixed performance. While the company surpassed analysts’ earnings expectations, its sales fell slightly short due to increased competition and discounting by rivals. Despite this, Darden remains committed to rewarding its shareholders, issuing $628 million in dividends and allocating $454 million towards share repurchases in fiscal 2024. Additionally, the company announced a nearly 7% increase in its quarterly dividend, now set at $1.40 per share, translating to a dividend yield of 3.5%. Analyst Peter Saleh from BTIG maintains a buy rating on DRI stock with a price target of $175, emphasizing the company’s strong fundamentals and potential for double-digit total shareholder return in the long run. Saleh’s confidence in Darden stems from its historical sales and operational performance, which has consistently outperformed its peers.
Another dividend stock worth considering is International Seaways (INSW), a tanker company providing energy transportation services for crude oil and petroleum products. With a combined dividend payout of $1.75 per share on June 26, INSW has demonstrated its commitment to rewarding shareholders. The company’s dividend payments, totaling $5.74 per share over the last twelve months, result in a dividend yield exceeding 13%. Following positive interactions with INSW’s management, Stifel analyst Benjamin Nolan reaffirmed a buy rating on the stock and raised the price target to $68. Nolan cites the strength of the tanker market, driven by increasing global oil consumption, limited new ship supply, and geopolitical uncertainties leading to longer voyage lengths. Expecting higher cash flows for INSW in the coming years, Nolan predicts sustained supplemental dividends due to excess cash flow after capital expenditure. With room for further dividend growth, INSW presents an attractive opportunity for investors seeking reliable dividend income.
Lastly, banking giant Citigroup (C) offers investors a dividend yield of 3.3% with a quarterly payout of 53 cents per share. Despite macroeconomic uncertainties and potential interest rate fluctuations, Citigroup remains confident in achieving its 2024 guidance, supported by revenue growth across its core business segments. Following the bank’s Services Investor Day, Goldman Sachs analyst Richard Ramsden reiterated a buy rating on Citigroup stock and increased the price target to $72. Ramsden’s optimism is fueled by Citigroup’s strategic transformation efforts, aiming to enhance risk control and data quality. With a focus on the Services business, Citigroup is strategically positioned to drive revenue growth and maintain market leadership through innovative offerings and technological investments. Ramsden foresees significant market share gains for Citigroup, driven by its global network, long-term client relationships, and commitment to delivering value to shareholders. As Citigroup continues its transformation journey, investors can expect sustained growth and dividend potential from this banking behemoth.
Dividend-paying stocks like Darden Restaurants, International Seaways, and Citigroup offer investors the opportunity to strengthen their portfolios and achieve long-term growth. With solid financials, strategic initiatives, and a commitment to shareholder returns, these companies stand out as top choices for investors seeking reliable dividend income and capital appreciation in today’s market environment.