Investing in dividend stocks gives individuals the best of both worlds. You can get stock appreciation and receive steady cash flow. Some corporations offer lower yields but can generate higher total returns than firms with high yields but limited growth opportunities.
Wall Street analysts usually gravitate toward companies that are still growing. While analysts aren’t always correct, they do more research than the average investor to draw their conclusions. These are some of the top dividend stocks to buy that are winning positive praise from Wall Street.
Visa (V)
Visa (NYSE:V) is rated as a Strong Buy and has a projected 13% upside from current levels. The highest price target of $340 per share suggests the stock could rally by an additional 22%.
The fintech firm has a straightforward business model. It makes a percentage of each Visa credit or debit card transaction. People will continue to use their credit and debit cards in any economic cycle, but they will ramp up their spending during strong economies.
Visa’s Q2 FY24 print demonstrated that consumer spending is still strong. Revenue and GAAP net income both increased by 10% year-over-year (YoY). Those growth rates helped the firm achieve an astounding 53.4% net profit margin.
Visa is up 7% year-to-date and has rallied 69% over the past five years. The stock trades at a 30.9 P/E ratio and offers a 0.74% yield. Visa has maintained an annualized dividend growth rate of 18.05% over the past decade.
Walmart (WMT)
Walmart (NYSE:WMT) is rated as a Strong Buy among 27 analysts and is estimated to have a 9% upside from current levels. The highest price target of $75.99 per share suggests the stock can gain an additional 26%.
The retailer has a vast global presence, including over 10,500 stores in 19 countries. Walmart also has several e-commerce websites, which have strengthened its financials. Global e-commerce sales grew by 23% YoY in Q4 FY24. Overall revenue was up by 5.7% YoY. Walmart’s advertising segment notably grew by 33% YoY in Q4 FY24 but remains a small portion of total revenue.
Walmart offers a 1.37% yield. While the corporation normally hasn’t raised its dividend by any meaningful amount in recent years, Walmart broke that tradition with a 9% dividend hike. It’s the highest dividend hike in more than a decade and marks Walmart’s 51st consecutive year of dividend increases.
Broadcom (AVGO)
Broadcom (NASDAQ:AVGO) has a consensus Strong Buy rating from 24 analysts and a projected 9% return based on the average price target. Some analysts are more optimistic and believe the stock can get as high as $1,720 per share. This price target indicates that a 29% gain is possible.
The semiconductor firm has been delivering exceptional returns for several years. The stock is up 22% year-to-date as it continues to capitalize on AI tailwinds. While Nvidia (NASDAQ:NVDA) is the leading AI chipmaker, Broadcom has been gaining traction as well. The stock is up by 381% over the past five years.
Those gains should continue based on the company’s 34% YoY revenue growth in Q1 2024. The VMware acquisition has been fueling Broadcom’s software division and helped the company offer guidance for $50 billion in fiscal 2024 revenue. This figure represents a 40% YoY increase.
Broadcom spent $8.29 billion on stock buybacks in the quarter and issued a quarterly dividend of $5.25 per share. The dividend stock has a 1.57% yield and has maintained an annualized dividend growth rate of 17.49% over the past five years.
On this date of publication, Marc Guberti held a long position in AVGO. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
