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Bullish Top Wall Street Analysts Recommend These Dividend Stocks

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In the volatile world of investing, dividend-paying stocks have emerged as a safe haven for investors looking for steady income and stability in uncertain times. With a plethora of companies offering dividends, choosing the right ones can be a daunting task. Fortunately, investors can rely on the recommendations of Wall Street experts, who conduct in-depth analyses of a company’s earnings growth potential and dividend history. Here are three dividend stocks that have caught the attention of top analysts on TipRanks.

First on the list is tech giant IBM, which recently announced mixed first-quarter results. Despite revenue missing estimates, IBM’s earnings exceeded expectations amidst a challenging macro environment. IBM also made headlines with a $6.4 billion acquisition of cloud software maker HashiCorp. The company paid dividends of $1.5 billion in the first quarter and is projected to deliver free cash flow of about $12 billion for the full year. With a dividend yield of about 4%, IBM is seen as a solid option by analysts like Evercore’s Amit Daryanani, who reiterated a buy rating on the stock with a price target of $215. Daryanani is optimistic about IBM’s growth levers and foresees increased consulting revenue in the second half of 2024.

Next up is toy manufacturer Hasbro, which reported better-than-expected first-quarter earnings, thanks to its turnaround efforts. Hasbro paid dividends totaling $97.2 million in Q1 2024 and offers a dividend yield of 4.7%. Analysts like JPMorgan’s Christopher Horvers have upgraded HAS stock to buy from hold, with a price target of $74. Horvers believes that Hasbro’s cost efficiency efforts and digital gaming prospects are underestimated by the market, leading to potential upside in the second half of 2024 and the first half of 2025. Despite challenges such as a shortened holiday season, Horvers sees improved growth prospects for Hasbro in the near future.

Lastly, big-box retailer Target has also caught the eye of analysts, with Baird’s Peter Benedict offering a positive outlook on the company. In the first quarter of 2024, Target paid $508 million in dividends and offers a dividend yield of 2.8%. While Target slightly missed earnings per share expectations in Q1, Benedict believes that the post-earnings selloff in TGT stock is overdone. He is confident in Target’s strategy for fiscal 2024, particularly its focus on value and affordability. Benedict also sees potential for positive comparable sales growth in the fiscal second quarter, thanks to easier comparisons with the prior year. Overall, Benedict believes that the risk/reward profile of TGT stock looks compelling, reiterating a buy rating with a price target of $190.

In conclusion, dividend stocks can be a valuable addition to any investor’s portfolio, providing a source of steady income and stability in turbulent markets. By following the recommendations of seasoned Wall Street analysts, investors can identify attractive dividend-paying stocks with the potential for long-term growth. Stocks like IBM, Hasbro, and Target have garnered positive attention from analysts for their strong fundamentals and growth prospects, making them worth considering for investors looking to build a resilient and income-generating portfolio.

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