Analysts are driving this dividend stock higher
Dividend growth stocks are one of our preferred investment groups because you get a lot of bumps for your money. Companies not only pay dividends but business growth usually means raising capital. This is called the gross return, or the sum of your dividends and capital gains and the stock of the dividend increase provides the best total return.
This is especially true of dividend growth stocks that have a history and distribution growth outlook because dividend growth helps maintain your portfolio yield over time and at the same time increases the yield on every dollar you invest. And if analysts like stocks too, better, because their focus (if it’s the right kind) will help keep a stock higher. So that’s why when we were so interested AbbVie (NYSE: ABBV), Juniper Networks (NYSE: JNPR)And PepsiCo (NASDAQ: PEP) As we enter the Q1 earnings reporting season, our screens appear for the upgrade.
Juniper networks have been upgraded to market share opportunities
The Juniper Network has been trending steadily higher over the past two years for its growth, pricing and support from analysts. The stock yields about 2.45% which makes it the lowest yielder on our list today but still a healthy payout compared to the broader market. The company has been raising dividends for the past five years, and has upgraded from Citigroup to Cell to Neutral in the hope that it could capture some market share from Cisco due to supply chain problems and the situation in Ukraine. .
The upgrade agreed from a strong hold to a weak buy and comes with a 36 price target. This is slightly above the consensus price target which has been trending higher over the last 30, 90, and 365 days. In terms of dividend health, Juniper Networks has a rock-solid balance sheet and is paying only 45% of its earnings as forecast. We expect the company to issue its 6th consecutive growth by the end of the fiscal year.
AbbVie gets a double-boost after positive study results
AbbVie reported positive results from the second phase trial of a pipeline drug and because of this it received two price target upgrades. Goldman Sachs and Barclays raised their targets to be 140 and $ 176 vs. $ 156 marketbeat.com compliance while maintaining a neutral equivalent rating. Their ratings are below the consensus of the firm Buy which was stable over the last year. Turning to dividends, AbbVie is the highest yielding stock on our list at 3.3% and with it the most aggressive approach to dividend growth. The company is paying 42% of its earnings and there is no red flag on the balance sheet so we expect to see a 9th consecutive increase in or near the current CAGR of 17%.
PepsiCo, the king of dividend producers
PepsiCo doesn’t expect double-digit growth, optimal growth prospects or even double-digit growth, but it does have something that AbbVie and Juniper Networks don’t have. PepsiCo has been raising its dividends for 49 years, making it a virtual dividend king. Dividend Kings has increased their pay-outs for at least 50 years and has proven to be an accurate, secure, consistent dividend payer and dividend producer regardless of economic status. Analyst activity on the stock has been somewhat mixed lately but has a net bullish and high trend over time. The latest outcry comes from JPMorgan Chase which supports the name compared to other consumer leaders for its anti-inflationary power. JPMorgan’s stock has an overweight rating compared to Marketbeat.com’s weak buy consensus.