Top Wall Street analysts pound the table on these 3 dividend stocks

Dividend-paying stocks can enhance investors’ portfolio returns and provide certainty in shaky markets.

Investors can track Wall Street analysts’ ratings to select stocks of dividend-paying companies that have attractive growth prospects, which could boost earnings and cash flows to support higher dividends.

Here are three attractive dividend stocks, according to Wall Street’s top experts on TipRanks, a platform that ranks analysts based on their past performance.

Northern Oil and Gas

This week’s first dividend stock is Northern Oil and Gas (NOG). The company engages in the acquisition, exploration and production of oil and natural gas properties, mainly in the Williston, Permian and Appalachian basins.

NOG paid a dividend of 40 cents per share for the first quarter, reflecting an 18% year-over-year increase. The stock offers a dividend yield of 4.1%. The company also enhanced shareholder returns through stock buybacks worth $20 million in Q1 2024.

NOG recently announced an agreement to acquire a 20% undivided stake in the Uinta Basin assets of XCL Resources for $510 million. The deal will be made in partnership with SM Energy.

Reacting to the news, RBC Capital analyst Scott Hanold reiterated a buy rating on NOG stock with a price target of $46. Following discussions with management, the analyst noted that similar to NOG’s strategy in the Permian and Williston Basins, there is a possibility of further expansion in the Uinta Basin through additional deals.

Hanold said the deal was in line with NOG’s strategy of collaborating with high-quality operators like SM Energy to capture lucrative opportunities. “This is NOG’s fourth large JV [joint venture] and meaningfully adds to its diversity, returns, and inventory runway,” he said.

The analyst boosted his 2025 earnings per share and cash flow per share estimates by 11% to 12% and increased his free cash flow per share forecast by 10%, given that the XCL deal is significantly accretive. He thinks that the solid free cash flow outlook could enable NOG to hike its base dividend. Hanold estimates a 10% to 15% increase in dividend in 2025.    

Hanold ranks No. 23 among more than 8,900 analysts tracked by TipRanks. His ratings have been profitable 67% of the time, delivering an average return of 26.7%. (See NOG Stock Buybacks on TipRanks)  

JPMorgan Chase

JPMorgan Chase (JPM), the largest U.S. bank by assets, is the next dividend pick. Last month, the bank announced its plans to increase its dividend by about 9% to $1.25 per share for the third quarter of 2024. JPM offers a dividend yield of 2.2%.

JPM highlighted that this potential increase in the Q3 dividend would mark the second dividend hike this year. In March 2024, the bank announced an increase in its dividend to $1.15 per share from $1.05. Moreover, JPM’s board has authorized a new share repurchase program of $30 billion, effective July 1, to boost shareholder returns.

Recently, RBC Capital analyst Gerard Cassidy reaffirmed a buy rating on JPM stock…