S&P 500   5,088.80
DOW   39,131.53
QQQ   436.78
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West Africa's ECOWAS bloc says it's lifting sanctions imposed on Niger over last year’s coup in a new push for dialogue
Macron booed by French farmers who blame him for not doing enough to support agriculture
S&P 500   5,088.80
DOW   39,131.53
QQQ   436.78
Warren Buffett uses his annual letter to warn about Wall Street and recount Berkshire's successes
Stop buying AI stocks! (Ad)
MarketBeat Week in Review – 2/19 - 2/23
Taiwan giant chipmaker TSMC opens first plant in Japan as part of key global expansion
Here's Why Bitcoin Could Rise to $165,000 Starting Exactly On April 22, 2024. (Ad)
A collection of the insights Warren Buffett offered in his annual letter Saturday
West Africa bloc lifts coup sanctions on Niger in a new push for dialogue to resolve tensions
Wall Street Pushing a 'Crypto Revolution' - Will You Miss Out… AGAIN? (Ad)
West Africa's ECOWAS bloc says it's lifting sanctions imposed on Niger over last year’s coup in a new push for dialogue
Macron booed by French farmers who blame him for not doing enough to support agriculture
S&P 500   5,088.80
DOW   39,131.53
QQQ   436.78
Warren Buffett uses his annual letter to warn about Wall Street and recount Berkshire's successes
Stop buying AI stocks! (Ad)
MarketBeat Week in Review – 2/19 - 2/23
Taiwan giant chipmaker TSMC opens first plant in Japan as part of key global expansion
Here's Why Bitcoin Could Rise to $165,000 Starting Exactly On April 22, 2024. (Ad)
A collection of the insights Warren Buffett offered in his annual letter Saturday
West Africa bloc lifts coup sanctions on Niger in a new push for dialogue to resolve tensions
Wall Street Pushing a 'Crypto Revolution' - Will You Miss Out… AGAIN? (Ad)
West Africa's ECOWAS bloc says it's lifting sanctions imposed on Niger over last year’s coup in a new push for dialogue
Macron booed by French farmers who blame him for not doing enough to support agriculture
S&P 500   5,088.80
DOW   39,131.53
QQQ   436.78
Warren Buffett uses his annual letter to warn about Wall Street and recount Berkshire's successes
Stop buying AI stocks! (Ad)
MarketBeat Week in Review – 2/19 - 2/23
Taiwan giant chipmaker TSMC opens first plant in Japan as part of key global expansion
Here's Why Bitcoin Could Rise to $165,000 Starting Exactly On April 22, 2024. (Ad)
A collection of the insights Warren Buffett offered in his annual letter Saturday
West Africa bloc lifts coup sanctions on Niger in a new push for dialogue to resolve tensions
Wall Street Pushing a 'Crypto Revolution' - Will You Miss Out… AGAIN? (Ad)
West Africa's ECOWAS bloc says it's lifting sanctions imposed on Niger over last year’s coup in a new push for dialogue
Macron booed by French farmers who blame him for not doing enough to support agriculture

Three Dividend Stocks With Growth Potential 

Three Dividend Stocks With Growth Potential 

The Analysts Are Driving These Dividend Stocks Higher 

Dividend growth stocks are among our favorite investment groups because you get so much bang for your buck. Not only do the companies pay dividends but business growth typically means capital appreciation as well. What this boils down to is called total returns, or the sum of your dividends and capital returns, and dividend growth stocks deliver the best total returns. 

This is especially true of dividend growth stocks that have a history and outlook for distribution increases because dividend increases help maintain your portfolio yield over time while also increasing the yield-per-dollar on each dollar you invest. And if the analysts like the stocks too, all the better, because their attention (if it's the right kind) will help keep a stock moving higher. So that’s why we were so interested when AbbVie NYSE: ABBV, Juniper Networks NYSE: JNPR, and Pepsico NASDAQ: PEP turned up on our screen for upgrades as we enter the Q1 earnings reporting season. 

Juniper Networks Upgraded On Market Share Opportunity 

Juniper Networks has been trending steadily higher for the last two years on its growth, value, and analysts' support. The stock yields about 2.45% making it the lowest yielder on our list today but still a healthy payout compared to the broad market. The company has been raising the dividend for the last 5 years as well, and just got an upgrade from Citigroup from Sell to Neutral on the expectation it can grab some market share from Cisco due to disruptions related to supply chain issues and the situation in Ukraine. 

The upgrade has the consensus edging up to a weak Buy from firm Hold and comes with a price target of $36. This is slightly above the consensus price target which has been trending higher over the last 30, 90, and 365 day periods. In regards to dividend health, Juniper Networks has a rock-solid balance sheet and is paying out only 45% of its earnings with earnings growth in the forecast. We expect to see the company issue the 6th consecutive increase at the end of the fiscal year. 

Three Dividend Stocks With Growth Potential 

AbbVie Gets Double-Boost After Positive Study Results 

AbbVie reported positive results from a phase II trial of a pipeline drug and it got two price target upgrades because of it. Goldman Sachs and Barclays upped their targets to $140 and $176 versus the $156 Marketbeat.com consensus while maintaining Neutral equivalent ratings. Their rating is below the consensus of firm Buy which has been steady over the past year. Turning to the dividend, AbbVie is the highest yielding stock on our list at 3.3% and it has the most aggressive outlook for dividend increases as well. The company is paying out 42% of its earnings and has no red flags on the balance sheet so we are expecting to see a 9th consecutive increase at or near the current CAGR of 17%. 

Three Dividend Stocks With Growth Potential 

Pepsico, A King Of Dividend Growers 

Pepsico doesn’t have the highest yield, the best outlook for growth, or even a double-digit expectation for dividend increases but it does have something that AbbVie and Juniper Networks don’t. Pepsico has been increasing its dividend for 49 years making it a virtual Dividend King. Dividend Kings have raised their payouts for at least 50 years and are proven to be sound, safe, consistent dividend payers and dividend growers regardless of economic conditions. The analyst's activity in the stock has been a little mixed of late but is net bullish and trending higher over time. The latest shoutout comes from JPMorgan Chase which favors the name over other consumer staples for its inflation-fighting power. JPMorgan has an Overweight rating on the stock compared to the Marketbeat.com consensus of weak Buy. 

Three Dividend Stocks With Growth Potential 

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Should you invest $1,000 in PepsiCo right now?

Before you consider PepsiCo, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and PepsiCo wasn't on the list.

While PepsiCo currently has a "Moderate Buy" rating among analysts, top-rated analysts believe these five stocks are better buys.

View The Five Stocks Here

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Companies Mentioned in This Article

CompanyMarketRank™Current PricePrice ChangeDividend YieldP/E RatioConsensus RatingConsensus Price Target
AbbVie (ABBV)
4.8475 of 5 stars
$178.09+0.8%3.48%65.23Moderate Buy$175.36
Juniper Networks (JNPR)
4.5616 of 5 stars
$37.18+0.1%2.37%39.14Hold$34.58
Compare These Stocks  Add These Stocks to My Watchlist 

Thomas Hughes

About Thomas Hughes

  • tmhughes.writeon@gmail.com

Contributing Author

Technical and Fundamental Analysis

Experience

Thomas Hughes has been a contributing writer for MarketBeat since 2019.

Areas of Expertise

Technical analysis, the S&P 500; retail, consumer, consumer staples, dividends, high-yield, small caps, technology, economic data, oil, cryptocurrencies

Education

Associate of Arts in Culinary Technology

Past Experience

Market watcher, trader and investor for numerous websites. Founded Passive Market Intelligence LLC to provide market research insights. 


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PepsiCo Stock NOT Flat

PepsiCo Stock NOT Flat

Among the highlights of the PepsiCo Q4 report are improved cash flow and a dividend increase, the 52nd in company history.

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