Top Wall Street analysts recommend these 3 dividend stocks for generating passive income

When markets get rocky, dividend-paying stocks can provide investors with the stability they need to weather volatile times. These stocks offer regular income in the form of dividends, which can help cushion a portfolio during market downturns. However, finding the right dividend payers can be challenging. This is where the expertise of Wall Street analysts comes in handy. These analysts can identify stocks with long-term growth potential and the ability to generate solid cash flows to support continued dividends.

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

OneMain Holdings

OneMain Holdings (OMF) is a financial services company that focuses on serving non-prime customers. The stock offers an attractive dividend yield of 8.1%. In addition to regular dividends, the company also enhances shareholder returns through share repurchases. In the fourth quarter, OneMain repurchased 531,000 shares for $20 million.

RBC Capital analyst Kenneth Lee recently raised his price target on OMF stock to $55 from $50, citing a more favorable macro outlook. He reiterated a buy rating on the stock, highlighting the company’s reliable business model and capital generation ability. Lee believes that OneMain Holdings has significant opportunities for further growth in the non-prime personal loan markets, as loans only make up 16% of total non-prime unsecured credit.

Walmart

Walmart (WMT) is a big-box retailer that recently announced a 9% increase in its annual dividend to 83 cents per share, marking its 51st consecutive year of dividend raises. The stock pays a dividend yield of 1.4%. Jefferies analyst Corey Tarlowe reiterated a buy rating on WMT stock with a price target of $70 after meeting with Walmart’s management. Tarlowe noted signs of consumer stability, increasing private label penetration, enhanced e-commerce shopping experience, and strong growth prospects for Walmart’s international segment.

Tarlowe also highlighted Walmart’s advertising business as a significant opportunity for future growth. He believes that advertising remains a key driver of revenue for the company.

SLB

Oilfield services company SLB offers a dividend yield of 2% and recently increased its quarterly cash dividend by 10%. Goldman Sachs added SLB to its U.S. Conviction List with a price target of $62, citing the company’s position as a leading energy services provider. Analyst Neil Mehta believes that SLB is the preferred stock to gain exposure to international and offshore oil services growth at an attractive price-to-earnings multiple.

Mehta also emphasized SLB’s strong free cash flow generation and its underappreciated digital business. He believes that SLB is uniquely positioned to expand its digital business given the industry’s low level of digitization.

In conclusion, dividend-paying stocks can provide investors with stability and income during volatile market conditions. By following the recommendations of top Wall Street analysts, investors can identify dividend stocks with long-term growth potential and the ability to generate solid cash flows to support continued dividends. Consider adding these three attractive dividend stocks to your portfolio for potential long-term gains.