Enbridge, an energy infrastructure company, is highlighted as a top dividend-paying pick by Wall Street’s top experts on TipRanks. The company, known for moving nearly 30% of North America’s crude oil production and about 20% of the natural gas consumed in the U.S., has a track record of increasing its dividend for 29 consecutive years with a current dividend yield of 7.7%. RBC Capital analyst Robert Kwan recently reiterated a buy rating on ENB stock following the regulatory approval of the acquisition of the East Ohio Gas Company. This approval is seen as a key development that supports market confidence in Enbridge’s ability to grow its earnings. Kwan pointed out that the acquisition of Dominion utilities, including the East Ohio Gas Company, sets a firm foundation for Enbridge’s expansion plans through 2026.
Bank of America, one of the leading banking institutions globally, also stands out as a top dividend stock pick. With a dividend yield of 2.6%, the bank has returned $12 billion to shareholders through dividends and share repurchases. RBC Capital analyst Gerard Cassidy expressed optimism about Bank of America’s leadership under chairman and CEO Brian Moynihan, who has focused on improving profitability through effective expense management and sound credit principles. Cassidy highlighted the bank’s solid balance sheet and strong capital position, indicating that Bank of America is capable of continuing to pay and increase its dividend even through economic downturns. The bank’s growing deposit market share, dominance in global capital markets, and attractive valuation are key factors contributing to its appeal as a dividend stock.
PepsiCo, a snack food and beverage giant, rounds out the list of top dividend stock picks recommended by Wall Street experts. Despite a slight revenue decline in the North American business segment, PepsiCo reported better-than-expected earnings for the fourth quarter. The company announced a 7% increase in its annualized dividend, marking the 52nd consecutive year of dividend payment growth. With a current dividend yield of 2.9%, PepsiCo is targeting cash returns of approximately $8.2 billion to shareholders in 2024. Morgan Stanley analyst Dara Mohsenian upgraded PepsiCo stock to a buy rating, citing valuation improvements and strong potential for organic sales growth in the near future. Mohsenian sees PepsiCo as a top pick in the market, emphasizing the growth prospects of the company’s international business that may not be fully reflected in its current valuation.
High-quality dividend stocks, such as Enbridge, Bank of America, and PepsiCo, offer investors stability and potential income growth. These top picks recommended by Wall Street experts on TipRanks showcase companies with solid fundamentals and a history of consistent dividend payments. Investors looking to build a resilient portfolio may consider including these dividend stocks based on their track record and future growth prospects.