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Top Wall Street analysts prefer these dividend stocks for steady income
MCDMcDonald's(MCD) CNBC·2024-10-13 13:13

Core Viewpoint - Investors are encouraged to consider dividend-paying stocks for steady income amidst geopolitical tensions and economic uncertainty, with recommendations from top analysts aiding in stock selection [1] Group 1: AT&T (T) - AT&T announced a quarterly dividend of 0.2775pershare,withadividendyieldof5.20.2775 per share, with a dividend yield of 5.2% [1] - Analyst Ivan Feinseth raised the price target for AT&T to 30, citing growth in wireless and wireline subscriptions, with 419,000 postpaid phone net additions in Q2 and a churn rate of 0.70% [2] - The company is expected to reach over 30 million locations with its fiber network by the end of next year, benefiting from the rollout of 5G and the iPhone upgrade cycle [2][3] - Feinseth views AT&T as an attractive investment due to its dividend yield and resilient business portfolio [3] Group 2: Realty Income (O) - Realty Income declared a monthly dividend of 0.2635pershare,offeringadividendyieldof5.10.2635 per share, offering a dividend yield of 5.1% [4] - Analyst Brad Heffern raised the price target for Realty Income to 67, benefiting from a lower cost of debt/equity capital [4] - Heffern highlighted the company's high-quality net lease portfolio and solid acquisition volumes as reasons for his bullish outlook [5] Group 3: McDonald's (MCD) - McDonald's announced a 6% increase in its quarterly dividend to 1.77pershare,markingthe48thconsecutiveyearofdividendincreases,withadividendyieldof2.31.77 per share, marking the 48th consecutive year of dividend increases, with a dividend yield of 2.3% [6] - Analyst David Tarantino raised the price target for McDonald's to 320, citing improved comparable sales growth in the U.S. and an increase in EPS estimates [6] - The improvement in U.S. comps is attributed to successful promotions and easier comparisons with the prior year [6]