Top Wall Street analysts favor these dividend stocks for better returns

Dividend-paying stocks can enhance portfolios and increase returns. Companies with a strong financial track record are sought after. Here are three attractive dividend stocks recommended by top professionals.

Darden Restaurants (DRI) operates popular full-service dining brands. Recently, the company reported mixed fourth-quarter results. While Darden surpassed earnings expectations, sales slightly missed due to increased competition. Darden issued dividends and allocated funds for share repurchases in the previous fiscal year. The company also increased its quarterly dividend by 7%, resulting in a 3.5% dividend yield. Analysts believe Darden can achieve its long-term targets.

International Seaways (INSW) provides energy transportation services. The company paid a combined dividend of $1.75 per share and reports a dividend yield of over 13% for the last twelve months. Analysts expect International Seaways to continue generating higher cash flows due to the favorable tanker market conditions. They anticipate sustained high supplemental dividends and increased dividend payments.

Citigroup (C), a major banking institution, offers a 3.3% dividend yield. During the Services Investor Day, management expressed confidence in achieving their 2024 guidance. The strategic transformation plan is gaining momentum, leading to increased EPS estimates. Citigroup’s Services business is expected to contribute significantly to revenue growth through 2026. Analysts highlight the bank’s focus on risk control, data quality, and market-leading positions in the Services sector.

These dividend stocks present attractive opportunities for investors looking to enhance their portfolios.