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Top Analysts Reveal 3 Must-Buy Dividend Stocks
2 Aug
Summary
- Expand Energy acquired Twin Eagle Holdings for $1.25 billion.
- SM Energy offers a 2.7% dividend yield with strong Q2 potential.
- SLB reported better-than-expected Q2 earnings globally.
In the face of Middle East instability and doubts surrounding the artificial intelligence boom, investors are advised to strengthen their portfolios with dividend stocks.
Top Wall Street analysts, tracked by TipRanks, have identified three compelling dividend-paying stocks. Expand Energy, a natural gas producer, recently announced the $1.25 billion acquisition of Twin Eagle Holdings. The company also reported strong Q2 results, repurchasing $530 million in shares and authorizing an additional $1 billion buyback. Expand declared a dividend of nearly 58 cents per share, yielding 2.5% annually.
SM Energy, operating in major U.S. shale basins, offers a quarterly dividend of 22 cents per share, amounting to an 88-cent annualized dividend with a 2.7% yield. Analyst Leo Mariani reaffirmed a buy rating, citing higher oil prices and an optimistic outlook for SM Energy's Q2 performance, projecting strong oil production around 1.5% above estimates.
Oilfield services provider SLB, formerly Schlumberger, exceeded expectations with its Q2 earnings, driven by sequential growth in international markets. SLB pays a quarterly cash dividend of nearly 30 cents per share, resulting in an annualized dividend of $1.18 and a 2.4% yield. Analyst Neil Mehta maintained a buy rating, expecting SLB to benefit from a recovery in international activity and growth in its data center business.
