In today’s volatile market environment, investors are constantly looking for ways to protect their portfolios and generate income. One strategy that many turn to is investing in dividend-paying stocks. These stocks not only provide a steady stream of income but also have the potential to outperform the market over the long term. One such dividend stock that has caught the attention of Wall Street analysts is IBM. Despite reporting mixed first-quarter results, IBM remains an attractive option for income investors with a dividend yield of around 4%. Analysts like Evercore’s Amit Daryanani are positive about IBM’s growth prospects, citing factors such as generative artificial intelligence and consulting revenue acceleration as key drivers. Daryanani’s bullish outlook on IBM is supported by his impressive track record, ranking at No. 243 out of over 8,800 analysts tracked by TipRanks.
Another dividend stock that investors should consider is Hasbro. The toymaker recently reported better-than-expected first-quarter earnings, thanks to its turnaround efforts. With a dividend yield of 4.7%, Hasbro offers an attractive income opportunity for investors. JPM analyst Christopher Horvers recently upgraded Hasbro to a buy rating, highlighting the company’s cost efficiency efforts and digital gaming prospects as key catalysts for future growth. Horvers’ optimistic outlook is further supported by his solid track record, ranking at No. 769 among more than 8,800 analysts tracked by TipRanks.
Lastly, big-box retailer Target is another dividend stock recommended by Wall Street analysts. Despite slightly missing earnings per share expectations in the first quarter, Target remains an attractive option for income investors with a dividend yield of 2.8%. Baird analyst Peter Benedict believes that the market’s reaction to Target’s earnings miss and price cuts was overblown and sees a compelling risk/reward profile for the stock. Benedict’s bullish stance on Target is backed by his impressive track record, ranking at No. 77 among more than 8,800 analysts tracked by TipRanks.
Dividend-paying stocks are an excellent option for investors looking to generate income and protect their portfolios in turbulent market conditions. By following the recommendations of top Wall Street analysts like Amit Daryanani, Christopher Horvers, and Peter Benedict, investors can identify attractive dividend stocks with significant growth potential. IBM, Hasbro, and Target are just a few examples of dividend stocks that analysts believe offer a compelling combination of income and upside potential.
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