Wall Street Analysts Pin Hopes on These 3 Dividend-Paying Stocks Amid Market Uncertainty
As market uncertainty persists due to ongoing events in the Middle East and concerns over AI's sustainability, investors are seeking ways to bolster their portfolios. Three dividend-paying stocks have been highlighted by Wall Street analysts for potential opportunities: Expand Energy (ticker not specified), SM Energy (ticker not specified), and SLB (formerly Schlumberger).
Expand Energy recently acquired Twin Eagle Holdings in a $1.25 billion deal, expected to accelerate marketing and commercial objectives. The company's second-quarter results showed solid performance, with a share repurchase of $530 million and an additional $1 billion buyback authorization announced. Expand Energy declared a dividend of nearly 58 cents per share for September 3, offering a 2.5% yield.
Wolfe Research analyst Doug Leggate reiterated his 'buy' rating on Expand Energy, raising the price target to $114 from $110. He noted improved gas realizations and reduced operational expenses led to impressive adjusted earnings per share and EBITDA.
SM Energy operates oil and gas assets across prominent U.S. shale basins, including the Permian Basin and DJ Basin. The company offers a quarterly dividend of 22 cents per share, translating to an annualized dividend of 88 cents and a yield of about 2.7%. Analyst Leo Mariani from Roth has reaffirmed a 'buy' rating on SM Energy, raising his price target to $34 from $32 due to optimistically higher oil prices.
SLB reported better-than-expected second-quarter earnings, aided by sequential growth across international markets. The company announced a cash dividend of almost 30 cents per share for October 8, translating to an annualized dividend rate of $1.18 and a yield of 2.4%. Goldman Sachs analyst Neil Mehta has reaffirmed his 'buy' rating on SLB stock, setting a price target of $62.