Investing in dividend-paying stocks is a popular strategy to enhance portfolio growth and earn passive income. Wall Street analysts have identified Darden Restaurants (DRI) as a promising dividend stock due to the company’s solid financials and consistent dividend payments. Darden Restaurants is known for its popular dining brands such as Olive Garden, LongHorn Steakhouse, and Yard House. Despite posting mixed results for the fourth quarter of fiscal 2024, Darden Restaurants exceeded earnings expectations and announced a 7% dividend hike. The stock currently offers a dividend yield of 3.5%.
Analyst Peter Saleh from BTIG reiterated a buy rating on DRI stock, emphasizing the company’s ability to deliver double-digit total shareholder returns. Saleh believes that Darden Restaurants is a strong industry player with a history of outperforming its peers in terms of sales and restaurant margin performance. With a positive outlook on pricing, advertising initiatives, and inflation, Saleh is confident in DRI’s long-term growth potential.
Another dividend stock recommended by Wall Street analysts is International Seaways (INSW), a tanker company that provides energy transportation services for crude oil and petroleum products. INSW recently paid a combined dividend of $1.75 per share, representing 60% of its first-quarter adjusted net income. The company’s dividend yield over the last twelve months exceeded 13%, indicating a strong commitment to returning value to shareholders.
Stifel analyst Benjamin Nolan reaffirmed a buy rating on INSW stock and raised the price target, citing the tanker market’s favorable conditions driven by global oil consumption and geopolitical factors. With increasing rate assumptions for 2024 and 2025, Nolan expects International Seaways to sustain high cash flows and deliver substantial dividends. The company’s excess cash flow after capital expenditure is projected to support continued dividend payouts, positioning INSW as an attractive dividend stock for investors.
Citigroup (C) is a banking giant that offers investors a quarterly dividend of 53 cents per share, translating to a 3.3% yield. Following the bank’s Services Investor Day, Goldman Sachs analyst Richard Ramsden reiterated a buy rating on Citigroup stock and raised the price target based on improved earnings estimates. Management’s strategic transformation plan and focus on revenue growth across core businesses have instilled confidence in Citigroup’s ability to achieve its 2024 guidance.
Ramsden highlighted Citi’s progress in risk control and data quality, as well as the strategic priorities set for the Services business. With a forecasted contribution of 25% to group revenue growth through 2026, the Services business is expected to drive market share gains and maintain its leading position. Ramsden’s optimism stems from Citigroup’s global network, client relationships, and investments in technology, positioning the bank for long-term success.
Dividend-paying stocks like Darden Restaurants, International Seaways, and Citigroup offer investors an opportunity to earn regular income while benefiting from potential stock appreciation. Following the recommendations of top Wall Street analysts can help investors identify promising dividend stocks with strong fundamentals and growth prospects. Consider diversifying your portfolio with these dividend stocks to enhance your investment strategy and achieve long-term financial goals.