Top Wall Street analysts like these dividend stocks for portfolio income

Even as the major averages have recently hit fresh records, there are plenty of catalysts that could shake things up, including geopolitical tensions and the upcoming U.S. presidential election. Investors seeking some stability in their portfolios may want to consider high-quality dividend stocks, especially those with a track record of steady income payments. Analysts conduct thorough research of companies’ fundamentals and their ability to pay and increase dividends over the long term. Here are three attractive dividend stocks, according to experts. Energy infrastructure company is this week’s first dividend-paying pick. The company moves nearly 30% of North America’s crude oil production and about 20% of the natural gas consumed in the U.S. Enbridge has increased its dividend for 29 years. It has a dividend yield of 7.7%. Following its recent investor day event, an analyst reiterated a buy rating on the stock. The analyst thinks that recent developments, including regulatory approval of an acquisition, would support the market’s confidence in the company’s ability to grow its earnings. Next up is Bank of America, one of the leading banking institutions in the world. The bank returned $12 billion to shareholders via dividends and share repurchases in 2023. The bank announced a dividend of 24 cents per share for the first quarter of 2024, payable on March 29. The stock offers a dividend yield of 2.6%. Recently, an analyst reiterated a buy rating on Bank of America with a price target. The analyst is optimistic about the leadership of the chairman and CEO, who is helping the bank steadily generate improved profitability through a focus on expenses and solid credit underwriting principles. This week’s third dividend pick is snack food and beverage giant PepsiCo. Last month, the company reported better-than-expected earnings for the fourth quarter, even as its revenue declined and missed analysts’ expectations due to pressure on demand in the North American business. Nonetheless, PepsiCo announced a 7% hike in its annualized dividend, effective with the dividend payable in June 2024. This increase marked the 52 nd consecutive year in which it boosted its dividend payment. PepsiCo currently has a dividend yield of 2.9%. On March 18, an analyst upgraded PepsiCo stock to buy from hold with a price target. The analyst cited two reasons behind an earlier downgrade of the stock – valuation concerns and his opinion that the consensus organic sales growth guidance seemed too high. The analyst named PepsiCo a top pick, contending that the market is not fully pricing in the growth prospects of the company’s international business.