In a market fraught with fears of an economic slowdown, investors are turning to dividend-paying stocks as a way to mitigate risk and uncertainty. One such stock that has caught the attention of top Wall Street analysts is Pfizer (PFE). The health-care giant recently announced better-than-expected second-quarter results, driven by cost-cutting initiatives and solid sales of non-Covid products. Pfizer raised its full-year guidance, reflecting strong demand for its non-Covid business and returning $4.8 billion to shareholders through dividends in the first six months of 2024. With a dividend yield of 5.9%, Pfizer is an attractive option for income-seeking investors.
Goldman Sachs analyst Chris Shibutani, ranked No. 462 on TipRanks, reiterated a buy rating on PFE stock with an increased price target of $34. Shibutani’s bullish outlook is based on Pfizer’s positive Q2 results and the company’s potential for further growth. He highlighted Pfizer’s capital allocation priorities, including dividends and debt reduction, as key factors contributing to its appeal as a dividend stock.
Why Civitas Resources (CIVI) Stands Out
Oil and natural gas producer Civitas Resources (CIVI) is another dividend stock recommended by Wall Street’s top pros. Following the announcement of its second-quarter results, Civitas declared a quarterly dividend of $1.52 per share, payable on Sept. 26. The company’s innovative shareholder return policy, which involves a mix of base and variable dividends, has resonated well with investors. In addition, Civitas has introduced a new share buyback plan of up to $500 million to reward its shareholders.
Mizuho analyst William Janela, ranked No. 406 on TipRanks, reaffirmed a buy rating on CIVI stock with a price target of $98. Janela praised Civitas for its solid execution across its Permian assets and highlighted the company’s cost-saving initiatives, which have led to a reduction in capital expenditure. He noted that Civitas’ revised shareholder-return program, focused on buybacks and dividends, is poised to drive meaningful free cash flow expansion in the second half of 2024.
IBM (IBM): A Tech Giant with Dividend Potential
Tech giant IBM (IBM) has emerged as a compelling dividend stock, particularly after its better-than-expected second-quarter results. With a dividend yield of 3.5% and a strong emphasis on shareholder returns, IBM is an attractive option for income-focused investors. The company’s robust cash flows and confidence in its growth potential, driven by its diversified business model and hybrid cloud and AI strategy, bode well for its ability to sustain and grow its dividends.
Evercore analyst Amit Daryanani, ranked No. 429 on TipRanks, reiterated a buy rating on IBM stock with a price target of $215. Daryanani acknowledged IBM’s strong performance in software and infrastructure businesses and highlighted the company’s commitment to stable and growing dividends. While IBM did not initiate share repurchases in the second quarter, Daryanani expects the company to focus more on mergers and acquisitions as part of its capital allocation strategy.
Investors looking for reliable income-generating opportunities in a volatile market environment can consider dividend-paying stocks like Pfizer, Civitas Resources, and IBM. Based on the insights provided by top Wall Street analysts, these three stocks have the potential to deliver consistent dividends and long-term value to shareholders.