When it comes to investing in dividend stocks, one of the first companies that come to mind is EPR Properties (EPR). This real estate investment trust is focused on experiential properties like movie theaters, amusement parks, eat-and-play centers, and ski resorts. EPR offers an attractive dividend yield of 7.3%, making it a lucrative option for income-seeking investors. Recently, RBC Capital analyst Michael Carroll upgraded EPR to buy from hold, with a raised price target of $50. Carroll is optimistic about EPR’s ability to withstand tough operating conditions, including the challenges posed by the Covid-19 pandemic and the actors/writers strikes. He believes that EPR is well-positioned to deliver favorable results as these headwinds dissipate. Despite concerns about EPR’s exposure to theaters, management plans to reduce this over time. Additionally, the worries about AMC, one of EPR’s key tenants, seem to be diminishing with various initiatives taken by the company. Carroll highlights that EPR’s high dividend yield is well-protected by its strong financials, including a 70% adjusted funds from operations payout ratio and a solid balance sheet with a 5.2-times net debt to earnings before interest, taxes, depreciation, and amortization ratio. With an impressive track record, Carroll ranks among the top analysts according to TipRanks.
Energy Transfer (ET)
Energy Transfer (ET), a limited partnership, is another dividend stock that Wall Street analysts are eyeing. The midstream energy company recently announced a quarterly cash distribution of 32 cents per unit, reflecting a year-over-year growth of 3.2%. With a dividend yield of 8%, Energy Transfer is an attractive option for investors looking to generate income. Stifel analyst Selman Akyol reacted positively to ET’s Q2 results, noting better-than-expected EBITDA and several growth opportunities, especially in the Permian to Gulf Coast value chain. Akyol is optimistic about the outlook for natural gas, particularly in supplying energy to artificial intelligence data centers. He emphasized that Energy Transfer’s management is confident in the company’s ability to meet the growing demand from utilities, especially in Texas and Florida. Despite potential increases in capex, Akyol maintains a buy rating on ET stock with a price target of $19. With a successful track record, Akyol is among the top analysts on TipRanks.
Walmart (WMT)
One of the most recognized dividend stocks in the market, Walmart (WMT) continues to impress investors with its solid financial performance. After reporting upbeat results for the second quarter of fiscal 2025, Walmart raised its full-year outlook, reflecting strong growth in the first half of the year. The retail giant has a long history of rewarding shareholders through dividends and share repurchases. In the first half of fiscal 2025, Walmart paid over $3 billion in dividends and repurchased shares worth $2.1 billion. Earlier this year, Walmart increased its dividend by 9%, marking the 51st consecutive year of dividend hikes. Baird analyst Peter Benedict reiterated a buy rating on Walmart following the Q2 results and raised the price target to $82. Benedict highlighted Walmart’s market share gains despite a challenging macro environment, attributing it to the company’s focus on value and convenience. He pointed out that a significant portion of Walmart’s growth is driven by digital channels, with investments in areas like automation and generative AI driving improvements in return on investment. With a strong track record, Benedict is recognized as one of the top analysts on TipRanks.
Dividend-paying stocks are gaining attention as the Federal Reserve prepares to cut interest rates. Investors looking for attractive income opportunities may consider dividend stocks like EPR Properties, Energy Transfer, and Walmart, which have been recommended by top Wall Street analysts. These companies offer compelling dividend yields, backed by solid financial performance and growth prospects. By following expert recommendations and conducting thorough research, investors can build a diversified portfolio of dividend stocks that provide a reliable source of income and potential for capital appreciation.