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Be prepared to smile, dividend hunters. Wall Street analysts are showing some preference for income-producing stocks today, raising price targets on six promising companies. With juicy yields ranging from 2.30% to a whopping 7.57%, these stocks span various sectors and offer something for every investor taste.
Newmont Corporation (NYSE:NEM): On the Gold Rush
Sensing the gold rush, TD Securities maintained a Hold rating on Newmont but increased its price target to $48 from $43. That’s a potential upside of 12.35% for this mining giant, which pays a sparkling $0.25 per share quarterly and has an annual yield of 2.3%. However, it’s worth noting that while the stock technically has a five-year dividend growth rate of 20.96%, its payout was cut from $0.55 per share last year.
Regions Financial Corporation (NYSE:RF): We are committed to steady growth
Piper Sandler remains neutral on Regions Financial but raised its price target to $21 from $20. That’s an increase of 6.25% for this bank holding company, which has increased its dividend by a whopping 12.52% over the last five years. With a yield of 4.90% and a quarterly payout of $0.24 per share, Regions Financial is a reliable choice for income seekers.
Citizens Financial Group, Inc. (NYSE:CFG): An Overweight Opportunity
Piper Sandler upgrades Citizens Financial Group from Neutral to Overweight, and with good reason. If the price target is increased from $35 to $41, this bank stock could see an upside of 15.75%. Add in a 4.80% yield, a quarterly distribution of $0.42, and a five-year dividend growth rate of 9.24%, and you have a financial heavyweight worth considering.
Juniper Networks, Inc. (NYSE:JNPR): Setting the Course for Dividend Growth
Barclays maintains Juniper Networks at Equal-Weight but increases its price target to $41 from $40. That’s an 18.17% gain for this networking tech player, which offers a 2.52% yield and has increased its dividend by 3.81% over the past five years. With a quarterly payout of $0.22 per share, Juniper sets the stage for dividend growth.
Columbia Banking System, Inc. (NASDAQ:COLB): Go for a high return
Barclays maintained its Equal-Weight rating on Columbia Banking System but increased its price target to $21 from $20. That represents an upside potential of 7.39%, but the real story here is the yield. At a staggering 7.57%, this bank pays out $0.36 per share quarterly and has delivered a dividend growth rate of 6.32% over the past five years. If you’re looking for high returns, Columbia Banking System is worth a closer look.
Dow Inc. (NYSE:DOW): A Chemical Reaction for Dividend Investors
Mizuho keeps Dow’s rating at Neutral but raises its price target from $55 to $62, while JP Morgan goes all-in, upgrading the stock to Overweight and raising its price target from $55 to $61. This represents a potential upside of 7.92% and 6.17%, respectively. This chemical company offers a solid 4.96% yield and pays $0.70 per share quarterly, although its dividend has remained unchanged since 2019.
Looking beyond the stock market: Alternative paths to passive income
While these dividend stock upgrades are certainly tempting, smart investors know that betting everything on the stock market can be risky. If you want to diversify your income streams and realize the potential of real estate investing, consider these two alternative options:
1. Arrived: Become a landlord easily
Imagine owning a rental property without having to deal with calls about leaky faucets at 3 a.m. That’s the beauty of Arrivald, a platform that lets you invest in rental property shares for just $100. With an average annual dividend yield of 4.2% and the ability to choose which properties you invest in, Arrivald puts you in control of your real estate investments. And with the backing of heavyweights like Amazon’s Jeff Bezos, you know this platform means business. Click here to explore the available properties on the platform
2. Cityfunds Yield Fund: Use real estate debt for stable returns
For those who prefer a more straightforward approach, the Cityfunds Yield Fund offers an enticing target annual return of 8% (with a floor of 7%) by investing in a diversified mix of property loans. With a minimum investment of $500 and quarterly distributions, this fund is an easy way to dive into the real estate debt market without getting too involved. Click here to find out more about the Yield fund or view other Cityfund offerings.
The bottom line: diversify your income streams for long-term success
Of course, today’s dividend stock upgrades are tempting, but the smartest investors know that true financial freedom comes from diversifying your income streams. By balancing your portfolio with a mix of high-yield stocks, rental real estate stocks, and real estate debt funds, you can build a solid foundation for long-term wealth.
So take a closer look at the upgraded dividend stocks – but don’t forget to explore alternative income streams like Arrivald and Cityfunds. Your future self (and your bank account) will thank you.
This article, “6 Dividend Stocks Get Bullish Analyst Ratings and Price Target Hikes – One Yields 7.57%” originally appeared on Benzinga.com
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