- IBM (IBM) has shown strong market performance with its Software segment leading due to AI and Red Hat, offering a 2.6% dividend yield, with analysts like Amit Daryanani from Evercore optimistic about its growth potential.
- Verizon (VZ) reported record postpaid phone additions, maintaining a high dividend yield of 6.8%, and is well-positioned for growth in 5G and AI, according to Tigress Financial’s Ivan Feinseth.
- EPR Properties (EPR), with a focus on experiential real estate, provides a 7.2% dividend yield, with RBC Capital’s Michael Carroll highlighting its recovery and growth prospects in the entertainment sector post-COVID.
In the turbulent landscape of the stock market, where tariffs, the rise of China’s DeepSeek, and the fluctuating earnings of major companies create a rollercoaster of investment opportunities and risks, investors often turn to dividend stocks for stability. A dividend is essentially a portion of a company’s profits paid out to shareholders, providing a steady income stream which can be particularly appealing during volatile market conditions.
Among the myriad of dividend-paying stocks, standout choices include those recommended by top Wall Street analysts on platforms like TR. Other platforms worth considering are Interactive Brokers (IBKR), Charles Schwab (SCHW), Robinhood (HOOD), which is ideal for beginners with its commission-free trading and simple, intuitive interface, and Personal Capital, where analysts are ranked based on their track record. Here’s a look at three such stocks:
International Business Machines (IBM) has shown resilience with its fourth-quarter earnings exceeding market expectations. The tech giant’s Software segment, especially its AI and Red Hat Linux offerings, has been a significant driver. IBM returned $1.5 billion to shareholders via dividends, boasting a yield of 2.6%. Analyst Amit Daryanani from Evercore raised the price target for IBM to $275 from $240. The company’s market cap last closed at $233.32 billion, and IBM’s stock price was $252.34. Daryanani highlighted IBM’s strategic positioning in both software and consulting, areas poised for growth with AI and potential acquisitions.
Verizon Communications (VZ) also shines with its recent performance. The telecom leader reported the best quarterly postpaid phone additions in five years, reinforcing its dividend attractiveness with a yield of 6.8%. Analyst Ivan Feinseth from Tigress Financial pointed out Verizon’s robust subscriber growth and its strategic advancements in 5G and AI, which are set to enhance its network and service offerings, potentially driving further growth and efficiency. Feinseth reiterated a ‘Buy’ rating with a $55.00 price target on the stock, which closed at $39.88 on Friday.
EPR Properties (EPR), a $3.61 billion market cap real estate investment trust specializing in experiential properties such as movie theaters, amusement parks, and eat-and-play centers, offers a compelling 7.2% dividend yield. Analyst Michael Carroll from RBC Capital noted a recovery in consumer interest in experiences post-COVID, particularly in higher-end markets which benefit EPR’s tenant base. With an expected increase in wide movie releases and a pragmatic investment strategy, EPR, last trading at $47.69, is seen as an attractive investment with a promising outlook for both dividend growth and stock value.
Carroll is optimistic about EPR stock, assigning it a ‘Buy’ rating with a $50 price target. He highlights EPR’s appealing over 7% dividend yield, projected to increase by 3% to 5% annually, and considers EPR’s valuation attractive at an estimated 9x forward adjusted funds from operations.
These companies illustrate not just the potential for income through dividends but also the underlying business strengths that could lead to capital appreciation. Investors looking to navigate through market turbulence might find these stocks particularly appealing for their stability, growth potential, and the expert endorsements from top analysts. This approach to investment, focusing on companies with solid fundamentals and analyst backing, can be a prudent strategy in an unpredictable economic environment.
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