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With that in mind, here are three attractive dividend stocks from top Wall Street experts at TipRanks, a platform that ranks analysts based on past performance.
Civitas Resources
First, independent oil and gas producer Civitas Resources (Sibi). The company is focused on developing assets in the Permian region. Denver Julesburg Basin.
Civitas paid a quarterly dividend on December 29, 2023 of $1.59 per share. This payment includes a base dividend of $0.50 per share and a variable dividend of $1.09 per share.
Earlier this month, Mizuho analyst Nitin Kumar upgraded Civitas stock to buyback with a price target of $86 per share. The analyst called it one of his top picks in the U.S. oil and gas space. Analysts believe 2023 will be a transformational year for the company, with three major acquisitions in the Permian Basin reshaping its asset base.
Kumar added that these recent acquisitions have extended the company’s overall inventory life to nearly 10 years, making it more competitive than its mid- and small-cap exploration and production rivals. He also highlighted that CIVI offers the highest cash returns compared to its peers.
Despite these positives, the company’s stock still trades at a significant discount to its peers on an FCF/EV and EV/EBITDAX (earnings before interest, taxes, depreciation, amortization and exploration costs) basis. has been done.
“We believe this relative valuation gap is too large given the significantly improved asset base and extended shelf life,” Kumar said.
Mr. Kumar is ranked #224 out of over 8,600 analysts tracked by TipRanks. His rating is that he is profitable 60% of the time, and the average return for each is 15.5%. (See his Civitas insider trading activity on TipRanks)
williams companies
Another Energy Dividend Stock – Williams Companies (WMB). The energy infrastructure company handles about one-third of the natural gas shipped in the United States.
The company paid a quarterly dividend of $0.4475 per share on December 26, 2023. This dividend registered a year-over-year growth of 5.3%. WMB’s dividend yield is 5.1%.
Williams recently acquired a portfolio of natural gas storage assets from an affiliate of Hartley Partners LP for $1.95 billion. Stifel analyst Selman Akiolu expects the acquisition, which includes six natural gas facilities, to be lucrative given the acquired assets’ access to LNG export facilities.
Analysts believe the deal will strengthen the company’s storage capacity and help it meet growing LNG demand. Additionally, the analyst noted that the acquisition would put the company in a good position to fuel standby power plants in the transition to renewable energy.
Akiolu reiterated his rating of WMB stock as a buy with a price target of $40, saying, “With its diverse gathering base and Transco’s largest long-distance natural gas pipeline in the United States, the Williams site is insulated from more than 90% of commodity price fluctuations. It should stay that way,” he said. Fee-based margin. ”
The analyst also highlighted the company’s top-tier distribution coverage, investment-grade balance sheet, attractive yield, and ability to generate stable cash flows despite macro challenges.
Akyol is ranked #976 out of over 8,600 analysts on TipRanks. His rating shows that he was successful 63% of the time and gave an average return of 4.2%. (See Williams’ financial statements on TipRanks.
Kimco Realty
Finally, Kimco Realty (Kim) is a real estate investment trust (REIT) that focuses on shopping centers with a focus on grocery stores. In December 2023, the company paid his quarterly cash dividend of $0.24 per share. This was an increase of 4.3% compared to the previous dividend payment. KIM’s dividend yield is 4.7%.
Following Kimco Realty’s recently completed acquisition of RPT Realty, Stifel analyst Simon Yarmak reaffirms his Buy rating on KIM stock and increases his price target from $21.75 to $23 per share. Raised it slightly. The analyst noted that management is optimistic about RPT’s portfolio, margins and rising occupancy levels for its solid sign-not-open (SNO) portfolio.
The analyst added that management is positive about the financial health of its tenants and believes its exposure to Rite Aid, which filed for bankruptcy in 2023, remains “very modest.”
Yarmac remains bullish on Kimco Realty, believing the company’s portfolio is stable and has significant size and scale in its target markets. He raised his FFO per share forecast for 2024 to $1.62 from $1.61 and for 2025 to $1.69 from $1.68. The analyst expects FFO to be $1.57 per share in 2023.
“KIM is focused on executing value creation opportunities within its portfolio to increase NOI. [net operating income] and cash flow growth,” Yarmak explained his investment stance.
Yarmak is ranked #410 out of over 8,600 analysts tracked by TipRanks. His rating is that he is profitable 58% of the time, and the average return for each is 9.7%. (See his Kimco Realty technical analysis on TipRanks)
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