Investors looking for stability and growth potential may want to consider tech giant IBM. With a solid track record of paying dividends and generating free cash flow, IBM offers a dividend yield of about 4%. Despite facing challenges in the first quarter, including a mixed revenue performance and macro uncertainties, IBM remains a favorite among Wall Street analysts.
Recently, Evercore analyst Amit Daryanani reiterated a buy rating on IBM stock with a price target of $215. Daryanani is optimistic about IBM’s growth prospects, especially in areas such as generative artificial intelligence and consulting revenue acceleration. Despite a sluggish start in Q1, IBM is expected to see revenue acceleration in the consulting segment in the second half of 2024.
Toymaker Hasbro is another dividend pick that has caught the attention of Wall Street analysts. With a dividend yield of 4.7%, Hasbro has been making strides in its turnaround efforts. Following better-than-expected first-quarter earnings, JPM analyst Christopher Horvers upgraded HAS stock to buy from hold with a price target of $74.
Horvers is particularly bullish on Hasbro’s cost efficiency initiatives and digital gaming prospects, which are expected to drive growth in the coming quarters. Despite challenges in the industry, including a shortened holiday season, Hasbro is well-positioned to benefit from new management strategies and product innovations.
For investors looking for a reliable dividend stock in the retail sector, big-box retailer Target may be a good choice. With a dividend yield of 2.8%, Target has a track record of paying dividends to shareholders consistently. Despite slightly missing earnings per share expectations in the first quarter, Target remains a favorite among analysts.
Baird analyst Peter Benedict believes that the post-earnings selloff in TGT stock was overdone and sees an opportunity for investors to capitalize on the company’s long-term growth prospects. With a focus on value and affordability, Target is well-positioned to drive positive comparable sales growth in the second quarter.
Overall, Wall Street analysts are bullish on these three dividend picks for their strong dividend yields, growth potential, and solid track records. Investors looking to add stability and income to their portfolios may want to consider these stocks for long-term investment.