Analysts Back These 3 Dividend Stocks Amid Market Volatility
In a market marked by inflation data, earnings reports, and Middle East tensions, investors seeking income can bolster their portfolios by adding dividend-paying stocks.
According to top Wall Street analysts, three such stocks stand out: Exxon Mobil, Expand Energy, and Diamondback Energy.
XOM stock offers a quarterly dividend of $1.03 per share (annualized at $4.12), yielding 2.6%. Morgan Stanley analyst Devin McDermott is bullish on Exxon Mobil, citing the company's large global integrated operations, strong balance sheet, and potential for earnings and cash flow growth.
Expand Energy offers a quarterly base dividend of $0.575 per share (annualized at $2.30), yielding 2.3%. Goldman Sachs analyst Neil Mehta expects the company to generate FCF per share of about $10 in FY28, up from his prior estimate of about $8.
Diamondback Energy offers a dividend yield of 2.2%. Mehta increased his price target on FANG stock to $220 from $212 and reiterated a buy rating, citing the company's capital-efficient volume growth as oil prices remain high amid persistent supply disruption in the Middle East.