Top Wall Street analysts pick these dividend stocks for enhanced returns

Here are three attractive ones Dividend stocksAccording to Top experts on Wall Street on TipRanks, a platform that ranks analysts based on their past performance.

coca cola

This week's first dividend pick is beverage giant Coca-Cola (ko). Earlier this month, the company reported fourth-quarter revenue that beat expectations and earnings that were in line with analyst estimates. Higher prices helped Coca-Cola offset weak sales volumes in North America.

Coca-Cola paid a dividend of $8 billion in 2023 and made net stock buybacks of $1.7 billion. The company recently announced approx 5.4% increase in quarterly dividends per share to $0.485. This increase represents the sixty-second consecutive year in which the company's profits have increased. With an annual dividend of $1.94 per share, KO stock offers a yield of more than 3%.

After the results of the fourth quarter of 2023, RBC Capital analyst Nick Moody I reiterated a Buy rating on Coca-Cola shares with a price target of $65. The analyst noted that KO's organic revenue growth was supported by impressive price appreciation and resilient volumes, with the company exceeding organic growth expectations for five out of six segments.

While higher marketing investments and a strong dollar affected Coca-Cola's earnings, the analyst expects the company's fundamentals to remain strong this year.

“We believe that the company's latest restructuring and organizational design changes will facilitate better resource allocation, which will ultimately lead to better stock gains and expansion of white space,” Modi said.

Moody is ranked No. 615 out of more than 8,700 analysts tracked by TipRanks. His evaluations were profitable 60% of the time, with each achieving an average return of 6.3%. (be seen Insider trading activity of Coca-Cola on TipRanks)

Capital of the blue owl

Next is Blue Owl Capital (owl), an asset manager with over $165 billion in assets under management as of December 31, 2023. On February 9, the company reported its quarterly results and announced Dividend of 14 cents per share, payable on March 5. The company also announced a 29% increase in its 2024 annual dividend to 72 cents per share (18 cents per share per quarter). Blue Owl has a dividend yield of 3.1%.

In response to the print, a Deutsche Bank analyst said Brian Bedell It reaffirmed a buy rating on OWL stock and raised its price target to $20 from $17. The analyst believes the company's fourth-quarter results were “very good,” with strong revenues, driven by improved management fees and higher-than-expected transaction fees.

After 25% growth in fee-related earnings, or FRE, in 2023, the analyst believes the company is well positioned to deliver at least a 25% increase in FRE this year as well. The analyst highlighted management's commentary on reaching a dividend target of $1 per share by 2025, with a vision of generating $1 billion in additional revenue.

“More importantly, after raising the dividend by 29% to US$0.72 [per share] “For 2024, MGMT has shown high visibility in generating stronger earnings power to support a dividend near $1.00 in 2025 (model $0.91),” Beddell said.

Bedell ranks 593rd among more than 8,700 analysts tracked by TipRanks. His evaluations were profitable 54% of the time, with each generating an average return of 8.5%. (be seen Blue Owl hedge fund activity on TipRanks)

Chevron

Oil and gas giant Chevron (CVX) Its profits fell last year due to lower oil prices compared to the high levels seen in 2022. However, the company impressed investors with significant shareholder returns of $26.3 billion. This amount included about $14.9 billion in stock repurchases and $11.3 billion in dividends.

Furthermore, Chevron, A Dividend Aristocrat, announced an 8% increase to its quarterly dividend to $1.63 per share, payable on March 11. The stock's return is 4.2%.

The Goldman Sachs analyst noted that Chevron's fourth quarter beat adjusted earnings per share Neil Mehta I reiterated a Buy rating on the stock with a price target of $180. The analyst highlighted management's constructive update on the Tengizchevroil, or TCO, expansion project in Kazakhstan.

While share buybacks in Q1 2024 may be limited due to the ongoing Hess deal, Mehta remains optimistic about Chevron's “leading capital return profile, as we expect CVX to return ~$29.3 billion in 2024/2025.” , representing a yield of approximately 10% versus a major U.S. peer average of approximately 8%.”

Aside from Chevron's attractive capital return profile, Mehta is also optimistic about the company's 2025 upstream business volume and cash flow turnaround as the project's TCO increases.

Mehta is ranked No. 351 out of more than 8,700 analysts tracked by TipRanks. His evaluations were successful 62% of the time, with each generating an average return of 10.7%. (be seen Chevron Finance on TipRanks)

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