When it comes to selecting dividend stocks, investors might find themselves overwhelmed by the vast array of choices available. However, based on recommendations from top analysts on TipRanks, there are three dividend stocks that stand out. One of these stocks is EPR Properties (EPR), a real estate investment trust that focuses on experiential properties like movie theaters, amusement parks, and ski resorts. One of the reasons why EPR is catching the attention of Wall Street analysts is its impressive dividend yield of 7.3%.
RBC Capital analyst Michael Carroll recently upgraded EPR to a buy rating from hold and raised the price target to $50 from $48, indicating his confidence in the company’s future prospects. Despite facing challenging operating conditions, including the Covid-19 pandemic and disruptions in the entertainment industry, Carroll believes that EPR has weathered the storm and is poised for growth. He anticipates that the theatrical box office will rebound in the near future, leading to higher percentage rents and a stronger tenant base for EPR. Additionally, management is actively working to reduce the company’s exposure to theaters, addressing concerns about its dependency on this sector.
Carroll also pointed out that EPR’s high dividend yield is well-supported by a 70% adjusted funds from operations payout ratio and a solid balance sheet with a 5.2-times net debt to earnings before interest, taxes, depreciation and amortization ratio. With a track record of profitable ratings, Carroll holds a strong position among the numerous analysts tracked on TipRanks.
Another dividend stock that has caught the eye of Wall Street analysts is Energy Transfer (ET), a limited partnership in the midstream energy sector. Energy Transfer recently announced a quarterly cash distribution of 32 cents per unit, reflecting a 3.2% year-over-year growth. The company boasts an impressive dividend yield of 8%, making it an attractive choice for income-seeking investors.
Stifel analyst Selman Akyol reacted positively to ET’s Q2 results, noting better-than-expected EBITDA and highlighting growth opportunities in the Permian to Gulf Coast value chain. Akyol also emphasized the optimistic outlook for natural gas, especially in supplying energy to artificial intelligence data centers. With an eye on market trends, ET’s management believes that the company is well-positioned to meet the increasing demand driven by the expansion of data centers in Texas and Florida.
Akyol’s buy rating and price target of $19 reflect his confidence in Energy Transfer’s growth potential and strategic positioning in the energy market. With a successful track record of profitable ratings, Akyol’s analysis adds credibility to the positive outlook for ET among investors and analysts.
Lastly, retail giant Walmart (WMT) has impressed investors with its recent financial performance and commitment to rewarding shareholders through dividends and share repurchases. Following a strong second quarter of fiscal 2025, Walmart raised its full-year outlook and continued its streak of dividend increases. In the first half of the fiscal year, Walmart paid out over $3 billion in dividends and repurchased shares worth $2.1 billion, demonstrating its dedication to enhancing shareholder value.
Baird analyst Peter Benedict reiterated a buy rating on Walmart and increased the price target to $82, citing the company’s ability to gain market share in a challenging economic environment. Benedict highlighted Walmart’s focus on value and convenience, which contributed to its strong performance in the second quarter. He also noted the significant growth in digital sales and higher margin income streams, showcasing Walmart’s strategic transformation efforts.
With a trailing 12-month return on investment of 15.1% and ongoing investments in automation and AI, Walmart is well-positioned for future growth and value creation for shareholders. Benedict’s track record of profitable ratings underscores the positive outlook for Walmart among analysts and investors alike.
These three dividend stocks – EPR Properties, Energy Transfer, and Walmart – have garnered attention from Wall Street analysts for their strong financial performance, dividend yields, and growth prospects. Investors looking to capitalize on income-generating assets may find these stocks attractive based on the recommendations of top analysts and their respective track records of profitability.