Amid concerns over a potential economic downturn and tariff policies, dividend stocks can provide stability to investors' portfolios. Wall Street's top analysts have identified companies that can withstand short-term challenges and generate steady cash flow, enabling them to consistently pay substantial dividends.
Energy Transfer (ET, Financial) is a top dividend stock pick this week. The company boasts a diversified energy asset portfolio in the U.S., including over 130,000 miles of pipelines. Recently, Energy Transfer increased its quarterly cash dividend by 3.2% to $0.325 per share, yielding 7.5%. Analyst Elvira Scotto of RBC Capital Markets views the stock favorably, citing its diverse cash flow sources and potential benefits from AI-driven projects. She maintains a buy rating but slightly adjusted the price target from $23 to $22 due to market uncertainties.
Another promising midstream energy company is The Williams Companies (WMB), which recently increased its annual dividend by 5.3% to $2.00, yielding 3.4%. Scotto highlights the company's focus on natural gas and its potential resilience during economic downturns. She maintains a buy rating with a $63 price target, optimistic about its growth projects and balance sheet strength.
Lastly, Diamondback Energy (FANG) focuses on onshore oil and gas reserves in the Permian Basin. Analyst Arun Jayaram of JPMorgan maintains a buy rating, slightly adjusting the price target to $166. He anticipates strong cash flow and capital efficiency, projecting $1.4 billion in free cash flow for the company.
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