Top Wall Street analysts pick these 3 stocks for attractive dividends
The stock market has been in turmoil lately due to the tariff debate, the rise of Chinese AI company DeepSeek and the economic results of key companies. Investors looking for stable income may consider including dividend stocks in their portfolio.
It is challenging to choose the right dividend stocks from the vast array of dividend stocks. Recommendations from leading Wall Street analysts, who base their analyses on detailed research of companies' financials and growth prospects, can be an important guide.
Here are three dividend stocks recommended by top analysts.
International Business Machines $IBM
The first stock on the list is tech giant IBM (IBM), which pleased investors with strong fourth-quarter earnings results. In particular, the Software segment showed strong demand for artificial intelligence (AI) and the Red Hat Linux operating system.
IBM paid out $1.5 billion in dividends to shareholders in the fourth quarter, offering a dividend yield of 2.6%.
Evercore analyst Amit Daryanani raised his price target on IBM stock to $275 from the previous $240 and reiterated his buy recommendation. According to him, the company is benefiting from its growing Software segment and potential acquisitions in the AI space.
Verizon Communications $VZ
The other interesting dividend stock is telecom giant Verizon Communications (VZ). The company posted strong fourth-quarter 2024 results and reported the highest number of new prepaid mobile service additions in five years. On February 3, Verizon paid a quarterly dividend of 67 cents per share, which equates to a dividend yield of 6.8%.
Tigress Financial analyst Ivan Feinseth reaffirmed his buy recommendation for Verizon and set a price target of $55. He believes the company will continue to prosper thanks to strong adoption of 5G technology and growing mobile service revenue.
Feinseth added that Verizon has a strong history of dividend increases and has raised them every year for the past 18 years.
EPR Properties $EPR
The third stock with an attractive dividend is EPR Properties (EPR), a real estate investment trust (REIT) focused on experiential properties such as movie theaters, theme parks and ski resorts. The company offers a high dividend yield of 7.2%.
Following the company's recent presentation, RBC Capital analyst Michael Carroll confirmed a buy recommendation and set a price target of $50. According to him, EPR benefits from a healthy tenant base, a recovering film industry and a well-thought-out investment strategy.
Carroll expects EPR to thrive in 2025 thanks to an increase in the number of movie releases, which will boost cinema attendance. He also added that the company's attractive dividend yield will grow at a rate of 3% to 5% annually.
Disclaimer: You will find a lot of inspiration on Bulios, but stock selection and portfolio construction is up to you, so always do a thorough analysis of your own.
Source: CNBC
