Investors can take advantage of low interest rates by diversifying their portfolios with growth and dividend stocks. With the Federal Reserve slashing interest rates, several investors are looking for lucrative dividend picks.
Three dividend-paying stocks have been highlighted by top Wall Street analysts as reliable options in a lower interest rate environment. These stocks offer solid fundamentals and attractive yields, making them attractive to investors seeking capital appreciation and regular income.
Walmart (WMT) is the first stock to consider. The company has raised its dividend for 51 consecutive years and offers a 0.9% dividend yield. Analyst Ivan Feinseth has reiterated a buy rating on WMT stock and increased the price target to $115 from $86, citing the company’s growth in e-commerce, solid brand equity, and capitalization on generative AI and machine learning.
Gaming and Leisure Properties (GLPI) is another stock worth considering. The REIT offers an attractive yield of 6.5% and has a strong balance sheet, high-quality cash flows, and a robust investment pipeline. Analyst Brad Heffern has a buy rating on GLPI stock with a price target of $57.
Finally, Ares Management (ARES) is an alternative investment manager that offers investment solutions across asset classes. The company announced a quarterly dividend of 93 cents per share for its Class A common stock and offers a 2.1% dividend yield. Analyst Kenneth Lee has reiterated a buy rating on ARES stock with a price target of $205, citing the company’s dominance in private credit and favorable trends in several markets.
These three stocks are among the top recommendations from Wall Street analysts and offer attractive yields and solid fundamentals. As investors look to capitalize on low interest rates, these dividend-paying stocks can help enhance returns through capital appreciation and regular income.
Source: https://www.cnbc.com/2024/12/22/top-wall-street-analysts-recommend-these-dividend-stocks-for-higher-returns.html