3 Dividend Stocks Earning Praise From Top Wall Street Analysts

Stocks to buy

While going after the top-tier growth plays may be the most enticing pathway, investors seeking consistent success in the market may want to consider the case for dividend stocks. No, these ideas aren’t the sexiest opportunities available. However, they should help buttress your holdings during a particularly challenging time.

For one thing, with proven dividend stocks, you have a chance to win via two avenues: capital gains and passive income. Granted, any market returns you encounter will probably be limited. Companies that consistently pay out typically have predictable businesses. Unfortunately, predictability tends to share an inverse relationship with outright profitability potential.

However, I wouldn’t fret. You can always allocate a portion of your funds toward speculation. But it would probably be prudent to consider passive income providers, especially those backed by Wall Street analysts. On that note, below are dividend stocks to consider.

Sysco (SYY)

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Based in Houston, Texas, Sysco (NYSE:SYY) falls under the consumer defensive umbrella. Specifically, it operates in the food distribution space. Per its public profile, Sysco through its subsidiaries engages in the marketing and distribution of various food and related products to the foodservice or food-away-from-home industries. Mainly, it serves the U.S., though it also covers Canada, the U.K., France and other international markets.

Fundamentally, what I appreciate about Sysco is the permanent relevance of the business. No, that doesn’t necessarily mean that SYY is guaranteed to succeed. Rather, we all need to eat. Further, the ability to transport finished food products to multiple parts of the world represents a key element of modernity. Not surprisingly, Sysco is consistent. Between the second quarter of 2023 to Q1 2024, its average earnings surprise came out to 1.48%.

Notably, analysts rate SYY stock a consensus strong buy with an $85.83 average price target. That implies capital gains potential of over 18%. At the same time, Sysco also offers a forward yield of 2.81%. With these factors in mind, SYY ranks among the top dividend stocks to buy.

Shell (SHEL)

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Falling under the integrated oil and gas sector, Shell (NYSE:SHEL) represents one of the biggest hydrocarbon firms in the world. Indeed, it ranks among the supermajors. As an integrated entity, Shell features business units that cover multiple components of the value chain. In addition to its core fossil fuel business, it has also pivoted aggressively to renewable energy infrastructure.

Still, let’s be real: the world runs on oil. And it may be a while before we run on anything else. With that in mind, Shell represents one of the most reliable dividend stocks. It may be controversial for its hydrocarbon specialty. Nevertheless, you might consider this to be a necessary “evil.”

Notably, aside from an earnings miss in Q2 2023, Shell has been consistent. Over the past four quarters, the company’s average earnings surprise came out to just over 11%. That’s impressive given the geopolitical rumblings in the energy space. Analysts also love it, rating shares a unanimous strong buy with a $90.33 average price target.

Shell provides a forward yield of 3.96%, which gives investors a balanced approach. It’s easily one of the dividend stocks to consider.

Blue Owl Capital (OWL)

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Calling New York City home, Blue Owl Capital (NYSE:OWL) falls under the broad financial services sector. Specifically, the company deals with asset management. Per its corporate profile, Blue Owl offers permanent capital base solutions. The company’s services enable a holistic framework for middle-market enterprises. Blue Owl also serves corporate real estate owners and tenants.

Admittedly, the asset manager occupies a risky component of the current economy. However, society is rapidly returning to normal. As circumstances continue to shift back to pre-pandemic norms, areas such as corporate real estate may recover. For now, Blue Owl is effectively matching expectations, commanding an earnings surprise of 3.05%.

Still, analysts see big growth this year, with revenue potentially hitting $2.12 billion. If so, that would translate to a gain of 22.5%. Overall, the expert assessment comes in as a strong buy with a $21.50 average price target.

Finally, Blue Owl offers a forward dividend yield of 4.31%. That’s above the financial sector’s average yield of 3.18%. With that, it’s one of the dividend stocks to consider.

On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare. Tweet him at @EnomotoMedia.

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