Investors looking to enhance their portfolio returns often turn to dividend-paying stocks for stability and growth potential. One such company that has caught the attention of Wall Street analysts is Northern Oil and Gas (NOG). Engaged in the acquisition, exploration, and production of oil and natural gas properties, mainly in the Williston, Permian, and Appalachian basins, NOG recently paid a dividend of 40 cents per share for the first quarter, marking an 18% year-over-year increase. With a dividend yield of 4.1%, NOG has also announced significant shareholder returns through stock buybacks worth $20 million in Q1 2024. Additionally, the company has entered into an agreement to acquire a 20% undivided stake in the Uinta Basin assets of XCL Resources for $510 million, in partnership with SM Energy.
RBC Capital analyst Scott Hanold recently reiterated a buy rating on NOG stock, with a price target of $46. He highlighted the potential for further expansion in the Uinta Basin through additional deals, similar to NOG’s strategy in other basins. Hanold believes that the collaboration with high-quality operators like SM Energy can lead to lucrative opportunities for NOG. With the recent XCL deal expected to be significantly accretive, Hanold increased his 2025 earnings per share and cash flow per share estimates by 11% to 12%, as well as his free cash flow per share forecast by 10%. This positive outlook has led him to estimate a 10% to 15% increase in dividend for 2025, showcasing the potential for NOG to enhance its base dividend.
JPMorgan Chase (JPM)
Another top dividend pick recommended by Wall Street experts is JPMorgan Chase (JPM), the largest U.S. bank by assets. Last month, the bank announced plans to increase its dividend by about 9% to $1.25 per share for the third quarter of 2024. With a dividend yield of 2.2%, JPM highlighted that this potential increase in the Q3 dividend would mark the second dividend hike this year, following a previous increase in March 2024. In addition, JPM’s board has authorized a new share repurchase program of $30 billion, effective July 1, to further boost shareholder returns.
RBC Capital analyst Gerard Cassidy reaffirmed a buy rating on JPM stock, with a price target of $211. He praised the company’s strong management team and impressive business lines that rank among the top three in the banking space. With a well-diversified business model that derives revenue from various sectors, including Consumer and Community banking, Corporate and Investment Banking, Asset and Wealth Management, Commercial Banking, and Corporate, JPM is poised for continued success in the market.
Walmart (WMT)
Lastly, big-box retailer Walmart (WMT) has also made it to the list of top dividend stocks recommended by Wall Street experts. Earlier this year, the company increased its dividend by 9% to 83 cents per share, marking its 51st consecutive annual hike. In the fiscal first quarter, WMT returned $2.73 billion to shareholders through dividends and share repurchases, reflecting its commitment to delivering value to investors. With a payout ratio of 37.5%, Walmart sees room for further growth in its dividend.
Jefferies analyst Corey Tarlowe reiterated a buy rating on WMT, with a price target of $77, noting that the stock remains his firm’s top pick. He highlighted Walmart’s early phase of its artificial intelligence and automation journey, which could double the company’s operating income by fiscal year 2029 compared to fiscal year 2023. With AI and automation driving efficiencies in various aspects of the business, including automation efficiencies, advertising, theft mitigation, and autonomous driving, Walmart is poised for significant growth in the coming years.
Dividend-paying stocks like Northern Oil and Gas, JPMorgan Chase, and Walmart present attractive investment opportunities for investors looking to enhance their portfolio returns. By following the recommendations of top Wall Street analysts, investors can capitalize on the growth potential and stability offered by these companies, leading to long-term success in the market.