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In the dynamic landscape of dividend stocks, a promising shift is anticipated with the Federal Reserve signaling rate cuts in 2024. Wall Street's seasoned analysts on TipRanks highlight three compelling dividend stocks for long-term investors. First in line is OneMain Holdings (OMF), a financial services company empowering non-prime customers with credit access. OMF, having recently paid a quarterly dividend of $1 per share, boasts an appealing yield of around 9%. Analyst Kenneth Lee from RBC Capital, following a confident Investor Day, reiterated a buy rating on OMF with a $50 price target. Notably, OMF's innovative underwriting models, leveraging machine learning and alternative data, position it for sustained success in its omnichannel approach.
- Next on the radar is CVS Health (CVS), a retail pharmacy chain that recently announced a 10% increase in its quarterly dividend to 66.5 cents. With a forward dividend yield of approximately 3.5%, CVS is charting a balanced capital deployment strategy. Analysts remain bullish on CVS, emphasizing its commitment to a growing dividend and anticipates robust growth in the health care delivery sector, emphasizing the company's balanced capital deployment strategy.
Why it matters
Closing the trio is Devon Energy (DVN), an oil and gas producer that declared a fixed plus variable dividend of 77 cents per share, marking a 57% increase from Q2 2023. DVN's resilience amid challenges, projects a rebound in capital efficiency in 2024. DVN's commitment to allocating 70% of its 2024 free cash flow towards cash returns positions it as a compelling choice for investors seeking dividends and capital growth.
