In the midst of a volatile market, dividend-paying stocks can be a safe haven for investors looking for stability and consistent returns. Health-care giant Pfizer (PFE) stands out as a top dividend stock, offering investors a dividend yield of 5.9%. Pfizer recently announced better-than-expected second-quarter results, driven by its cost-cutting initiatives and strong sales of non-Covid products. The company raised its full-year guidance, reflecting the strong demand for its non-Covid business, which is benefiting from several acquired drugs and recently launched products.
Goldman Sachs analyst Chris Shibutani reiterated a buy rating on PFE stock and increased the price target to $34 from $31 following the upbeat Q2 results. Shibutani highlighted the strength in Pfizer’s heart disease drug, Vyndaqel, and cancer treatment Padcev as contributing factors to the positive outlook. With a focus on capital allocation priorities, including dividends and debt reduction, Pfizer remains a strong contender for investors seeking stability and growth in their portfolio.
Oil and natural gas producer Civitas Resources (CIVI) is another dividend stock that investors should consider during turbulent times in the market. The company recently declared a quarterly dividend of $1.52 per share, payable on Sept. 26. Civitas has revised its shareholder-return program to enhance flexibility in rewarding shareholders with variable returns, including a combination of buybacks and dividends. Mizuho analyst William Janela reaffirmed a buy rating on CIVI stock with a price target of $98, calling the company a top pick.
Janela noted that Civitas’ revised shareholder-return program gives the company the flexibility to lean more heavily into buybacks, which should resonate with investors as the company expands its free cash flow in the future. With a focus on lowering capital expenditure budget and achieving cost savings in well costs, Civitas is set up for growth and increased shareholder value in the long run.
Tech giant IBM (IBM) offers investors a dividend yield of 3.5%, supported by strong cash flows and a solid business model. The company recently impressed investors with better-than-expected results for the second quarter, driven by its generative artificial intelligence business. IBM expects full-year free cash flow to exceed $12 billion, showcasing its confidence in future growth prospects.
Evercore analyst Amit Daryanani reiterated a buy rating on IBM stock with a price target of $215, highlighting the company’s strong software and infrastructure businesses. While facing challenges in the consulting sector due to weak discretionary spending by enterprise customers, IBM remains committed to stable and growing dividends. Daryanani expects IBM to allocate more capital to mergers and acquisitions in the future, signaling a strategic shift in the company’s growth strategy.
Dividend-paying stocks like Pfizer, Civitas Resources, and IBM provide investors with stability and consistent returns in volatile market conditions. These companies have strong financials, a track record of dividend payments, and a commitment to enhancing shareholder value through buybacks and dividends. By following the recommendations of top Wall Street analysts and investing in these dividend stocks, investors can navigate market uncertainties and build a resilient investment portfolio.