Investing in dividend-paying stocks has always been a popular strategy for generating a steady income stream while also benefiting from potential capital appreciation. With the Federal Reserve expected to cut interest rates in September, the appeal of these stocks is set to rise even further.
For Investors who are looking for good dividend stocks and may want to consider expert suggestions, Wall Street analysts have identified several top dividend-paying stocks.
Top Dividend-Paying Stocks Worth Your Investment According to Wall Street Analysts
Here, we will explore some of the best dividend-paying stocks you can invest in right now.
EPR Properties (EPR)
First on the list is EPR Properties (EPR), a real estate investment trust that focuses on experiential properties such as movie theaters, eat-and-play centers, amusement parks, and ski resorts. EPR Properties offers a substantial dividend yield of 7.3%.
Recently, RBC Capital analyst Michael Carroll upgraded EPR to a buy rating, raising the price target to $50 from $48. Carroll's optimism stems from EPR's resilience in navigating tough conditions, including the COVID-19 pandemic and the ongoing actors/writers strikes.
He anticipates a reacceleration in the theatrical box office in the latter half of 2024 and into 2025, which should bolster EPR's performance. Carroll also highlighted that EPR's high dividend yield is well-supported by its financials, including a 70% adjusted funds from operations payout ratio and a solid balance sheet. This stability makes EPR a good choice for investors seeking reliable dividend income.
Energy Transfer (ET)
Next, we have Energy Transfer (ET), a midstream energy company known with a robust dividend yield of 8%. Energy Transfer recently reported better-than-expected EBITDA for the second quarter, reflecting its strong operational performance.
Stifel analyst Selman Akyol pointed out several growth opportunities for the company, particularly in its Permian to Gulf Coast value chain. The company made a quarterly cash distribution of 32 cents per unit, marking a year-over-year growth of 3.2%.
This consistent performance and the potential for future growth make Energy Transfer an attractive option for dividend-focused investors. Akyol's positive outlook on Energy Transfer means that the company has the ability to generate stable cash flows, which is crucial for maintaining and potentially increasing its dividend payouts.
Walmart
Walmart (WMT), the retail giant, continues to be a favorite among analysts due to its strong financials and consistent performance. Earlier this year, Walmart boosted its dividend to 83 cents per share, with a 9% increase. With this increase, the firm has increased its dividend for 51 years running.
Walmart recently announced good financial results for the second quarter of fiscal 2025, which pleased investors. In light of the excellent results seen thus far this year, the company has also increased its full-year projection.
After the second quarter report, Peter Benedict, an analyst at Baird, boosted the price objective for Walmart from $70 to $82 and reaffirmed its buy rating. He emphasized that the store's unwavering commitment to value and convenience allowed it to enhance its market share in spite of a turbulent macro background.
Final Remarks
EPR Properties, Walmart, and Energy Transfer are three top dividend-paying stocks that have garnered positive attention from Wall Street analysts. As the Federal Reserve's anticipated interest rate cuts loom, these stocks are poised to offer attractive returns for investors seeking stable and reliable income streams.