As investors navigate a landscape marked by a potential government shutdown and a slowing labor market, dividend stocks are gaining attention. Wall Street analysts have recommended several dividend-paying stocks that demonstrate solid fundamentals for stable returns. Here are three top picks tracked by El-Balad.
Top Dividend Stocks Recommended by Wall Street Experts
1. Brookfield Infrastructure Partners (BIP)
- Dividend: 43 cents per unit, increased by 6% year-over-year.
- Annualized Dividend: $1.72 per unit.
- Dividend Yield: 5.2%.
Brookfield Infrastructure Partners operates in diversified sectors, including utilities and data. After their recent Investor Day, BMO Capital analyst Devin Dodge maintained a buy rating with a price target of $42. He noted strong organic growth within BIP’s portfolio and highlighted substantial investment opportunities, particularly in digital infrastructure. The forecast suggests that the growth rate of funds from operations per unit (FFO/unit) may soon increase significantly.
2. Ares Capital (ARCC)
- Dividend: 48 cents per share paid quarterly.
- Annualized Dividend: $1.92 per share.
- Dividend Yield: 9.4%.
Ares Capital specializes in providing direct loans to middle-market companies. RBC Capital analyst Kenneth Lee reiterated a buy rating, raising the price target to $24. Ares is recognized for proficiently managing risks, which positions it well within its sector. The experienced management team and established credit platform provide a competitive edge, making ARCC a reliable dividend stock.
3. ONE Gas (OGS)
- Dividend: 67 cents per share quarterly.
- Annualized Dividend: $2.68 per share.
- Dividend Yield: 3.3%.
ONE Gas serves over 2.3 million customers across Kansas, Oklahoma, and Texas. Mizuho analyst Gabe Moreen upgraded the stock to a buy rating, with a price target increase to $86. This optimistic outlook is supported by recent legislative changes and expected benefits from lower interest rates, enhancing the company’s growth potential. The demand for natural gas from various sectors also positions ONE Gas well for future expansion.
These three stocks—Brookfield Infrastructure Partners, Ares Capital, and ONE Gas—are being highlighted by analysts for their robust dividend yields and stable growth potential. Investors seeking reliable dividends in an uncertain market may find these options appealing.
