Top Wall Street analysts recommend these 3 dividend stocks for increased profits

Dividend-paying stocks offer investors a way to protect their portfolios from market volatility and achieve better returns. Selecting the right dividend stocks can be challenging, but Wall Street analysts can provide valuable insights into companies that offer attractive dividend yields and potential growth. Three dividend stocks recommended by top analysts on TipRanks are Kimberly-Clark, Chord Energy, and Cisco Systems.

Kimberly-Clark is a consumer products giant known for brands like Huggies and Kleenex. The company has a solid track record of raising dividends for over 50 consecutive years. In the first quarter of 2024, Kimberly-Clark returned $452 million to shareholders through dividends and share repurchases. RBC Capital analyst Nik Modi recently upgraded KMB stock to a buy rating, citing the company’s shift towards a growth-oriented strategy under CEO Mike Hsu. Modi is optimistic about Kimberly-Clark’s long-term targets and believes the company is well-positioned for reliable growth.

Chord Energy, an oil and gas operator in the Williston Basin, is another dividend stock recommended by analysts. The company recently completed its acquisition of Enerplus, which is expected to strengthen its position in the region. Mizuho analyst William Janela reaffirmed a buy rating for CHRD stock, noting the increased estimate for annualized deal synergies post-acquisition. Janela believes that the combined company will benefit from enhanced operational scale and above-average cash returns.

Cisco Systems, a dividend-paying technology stock, is the third pick on the list. The networking giant paid a significant amount to shareholders in the third quarter of fiscal 2024, including dividends and share repurchases. Jefferies analyst George Notter reiterated a buy rating for CSCO stock following the investor and analyst day, where the company provided clarity on its strategy with regard to Splunk. Notter is positive about Cisco’s long-term growth targets, which include low-to-mid-single-digit revenue growth in fiscal 2025 and improved earnings per share in fiscal 2026-2027.

Overall, dividend-paying stocks like Kimberly-Clark, Chord Energy, and Cisco Systems offer investors the opportunity to benefit from both dividend income and potential capital appreciation. Wall Street analysts provide valuable insights into these companies’ future prospects, making it easier for investors to make informed decisions. With dividend yields ranging from 3.5% to 9%, these stocks can be a valuable addition to a well-diversified investment portfolio.