One of the top dividend picks on Wall Street right now is OneMain Holdings (OMF). This financial services company focuses on non-prime customers and offers an attractive dividend yield of 8.1%. In addition to regular dividends, the company also engages in share repurchases, further boosting shareholder returns. Analysts like Kenneth Lee from RBC Capital have updated their models and estimates for OMF stock, raising the price target to $55 from $50. Lee cited the company’s reliable business model and capital generation ability as reasons for the increase. He also mentioned OMF’s high return on tangible common equity, estimated to be over 40%. Despite these positive factors, there are still risks involved in investing in OMF, including potential changes in the non-prime personal loan markets.
Another dividend stock to consider is Walmart (WMT). The retail giant recently announced a 9% increase in its annual dividend, reaching 83 cents per share, marking the company’s 51st consecutive year of dividend raises. Walmart pays a dividend yield of 1.4%, making it an attractive option for income-focused investors. Analyst Corey Tarlowe from Jefferies reiterated a buy rating on WMT stock with a price target of $70 after a meeting with Walmart’s management. Tarlowe highlighted several positive aspects of the company, including improvements in customer experience, increased private label penetration, and growth in the international segment. However, it is important to note that investing in Walmart carries risks, such as changes in consumer behavior and competition from other retailers.
The third dividend stock recommended by Wall Street analysts is oilfield services company Schlumberger (SLB). SLB recently announced better-than-anticipated fourth-quarter results and increased its quarterly cash dividend by 10%. With a dividend yield of 2%, SLB presents a solid income opportunity for investors. Goldman Sachs analyst Neil Mehta added SLB to its U.S. Conviction List with a price target of $62. Mehta praised SLB as a leading energy services provider and highlighted its strong free cash flow generation. He also mentioned SLB’s digital business, which has the potential to drive future growth. Despite these positive aspects, investing in SLB comes with risks related to fluctuations in oil prices and changes in the energy market.
Dividend-paying stocks can be a valuable addition to an investor’s portfolio, providing stability and income. However, it is important to conduct thorough research and consider the advice of experienced analysts before making investment decisions. Each of the three dividend stocks mentioned – OneMain Holdings, Walmart, and Schlumberger – offer unique opportunities and risks that should be carefully weighed before investing. By staying informed and staying vigilant, investors can make sound choices when it comes to dividend stocks.