- Coterra Energy (CTRA) raised its Q4 2024 dividend by 5% to 22 cents per share, yielding 3.3%, with dividends and buybacks totaling $1.086 billion in 2024, earning a buy rating from Mizuho’s Nitin Kumar due to strong production and flexible 2025 spending adjustments of -$70 million in the Permian and +$50 million in the Marcellus.
- Diamondback Energy (FANG) increased its annual dividend by 11% to $4.00 per share, with a Q4 payout of $1.00 per share, backed by a robust Q4 and a 2025 free cash flow outlook of over $5.9 billion, prompting Siebert Williams Shank’s Gabriele Sorbara to reaffirm a buy rating.
- Walmart (WMT) boosted its annual dividend by 13% to 94 cents per share for its 52nd consecutive year, despite forex and spending headwinds, leading Evercore’s Greg Melich to maintain a buy rating, seeing value in its market share gains and innovation despite trimming 2025 EPS estimates by 10 cents.
Amid the market turbulence sparked by the Trump administration’s tariff policies last week, which sent ripples of uncertainty through the major averages, investors are increasingly turning to dividend-paying stocks for stability, guided by insights from top Wall Street analysts featured in a recent TipRanks report. Among the standout recommendations is Coterra Energy (CTRA), an exploration and production firm with a strong foothold in the Permian Basin, Marcellus Shale, and Anadarko Basin, which has caught the eye of Mizuho analyst Nitin Kumar, ranked No. 347 out of over 9,400 analysts on TipRanks with a 58% success rate and 10.8% average return. Coterra recently raised its Q4 2024 dividend by 5% to 22 cents per share, offering a 3.3% yield, after delivering a strong fourth-quarter performance where dividends and share repurchases totaled $1.086 billion – 89% of its full-year free cash flow – driven by higher oil production and robust volumes, despite tweaking its 2025 spending by cutting Permian Basin outlays by $70 million and increasing Marcellus investments by $50 million to adapt to commodity price trends.
Another compelling pick is Diamondback Energy (FANG), a Permian Basin-focused oil and gas company that bolstered its portfolio with the Endeavor Energy Resources acquisition last year, earning praise from Siebert Williams Shank analyst Gabriele Sorbara, ranked No. 217 on TipRanks with a 51% success rate and 18.4% average return. On February 24, Diamondback reported a market-beating Q4, lifting its annual base dividend by 11% to $4.00 per share, with a Q4 cash dividend of $1.00 per share payable on March 13, underpinned by strong production and a free cash flow that beat Sorbara’s estimate by 9.8% and consensus by 13%. Sorbara sees potential for an upward revision to the company’s 2025 free cash flow outlook of over $5.9 billion at a $70/bbl WTI price, bolstered by the recent Double Eagle IV acquisition, positioning FANG as a leader in sustainable cash flow generation amid a volatile energy market.
Completing the trio is Walmart (WMT), the retail giant dubbed a dividend king for its 52nd consecutive year of dividend hikes, recently boosting its annual payout by 13% to 94 cents per share, with a quarterly dividend of $0.235 per share, as noted by Evercore analyst Greg Melich, ranked among TipRanks’ elite. Despite fiscal Q4 beats on revenue and earnings, Walmart tempered expectations with warnings of slower profit growth due to cautious consumer spending and forex pressures, prompting Melich to trim his 2025 and 2026 EPS forecasts by 10 cents and 5 cents, respectively, and lower his price target to $107 from $110. Yet, Melich remains optimistic, citing Walmart’s value leadership, enhanced merchandising, and innovations like automation and ad revenue growth, which he believes will drive market share gains and margin expansion, making the stock’s post-earnings dip a buying opportunity for those seeking quality growth in uncertain times.
These selections, drawn from TipRanks’ report, underscore a broader trend: as tariff-induced volatility rattles Wall Street, dividend stocks like Coterra, Diamondback, and Walmart offer a blend of resilience and income potential. Coterra’s flexibility in capital allocation and undervalued natural gas exposure, Diamondback’s operational prowess in the Permian, and Walmart’s enduring retail dominance highlight their appeal. With analysts like Kumar, Sorbara, and Melich – whose track records speak to their credibility – backing these names, investors have a roadmap to navigate the storm, balancing steady dividends with the promise of long-term upside.
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