Investors seeking stocks for steady and worry-free income to buy in June could consider Realty Income (NYSE:O), Walmart (NYSE:WMT), and Sysco (NYSE:SYY). These corporations are Dividend Aristocrats, having consistently raised their dividends for 25 years or more in a row. Further, shares of these companies have received a Strong Buy consensus rating from the Top Wall Street analysts.
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It’s worth mentioning that TipRanks ranks the top analysts according to industry, timeline, and benchmarks. The ranking reflects an analyst’s ability to deliver higher returns through recommendations. Following the ratings, TipRanks’ algorithms calculate the statistical significance of each rating, the analysts’ overall success rate, and the average return.
Against this backdrop, let’s dig deeper to understand why top analysts are bullish about these Dividend Aristocrats.
Is Realty Income Stock a Buy?
Realty Income is an S&P 500 (SPX) company and a member of the S&P 500 Dividend Aristocrats Index. The company operates as a REIT (Real Estate Investment Trust (REIT) and is famous for consistently enhancing its shareholders’ returns through higher dividend payments.
Realty Income’s extensive portfolio of 12,492 high-quality real estate properties, long-term leases, and a highly diversified customer base provides a dependable revenue stream and supports its dividend payments.
Realty Income has consistently delivered positive earnings growth thanks to its resilient business. Further, it has increased its dividend at a CAGR of 4.4% since 1994.
As Realty Income has a solid earnings base with growing dividend payouts, it has received three Buy and one Hold recommendations from the Top Wall Street analysts. Further, their average price target of $68.81 implies 14.66% upside potential. It also pays an attractive yield of 5.1%.
How Often Does Walmart Pay Dividends?
Walmart pays a quarterly dividend. Further, as its payouts are part of its diversified capital returns approach, they have increased for 50 consecutive years. Walmart’s solid dividend payment and growth history are supported by its defensive business model, which consistently generates solid earnings regardless of the economic situation.
Walmart’s value pricing strategy, wide range of consumable products, and ease of shopping continue to drive customers to its stores and online platform and, in turn, its financials. Also, Walmart is a low-beta stock, implying that it remains relatively immune to the volatility in the market.
WMT stock has received 16 Buy ratings from the Top Wall Street analysts, translating into a Strong Buy consensus rating. Meanwhile, its average price target of $169.81 implies 13.37% upside potential. WMT stock offers a yield of 1.52%, near the current price levels.
Is Sysco a Good Company to Invest In?
Sysco sells and distributes food products to restaurants, educational and government bodies, and other establishments. Its diversified business model, capital investments in growth initiatives, focus on accretive acquisitions, and expansion into underpenetrated markets help the company deliver solid sales and earnings and drive its market share gains.
Thanks to its growing earnings base and solid balance sheet, Sysco has raised its dividend for 53 years. Further, SYY stock offers a dividend yield of 2.75%.
It has received four Buy and one Hold recommendations from the Top Wall Street analysts. It carries a Strong Buy consensus rating, while the average analyst price target of $84.80 implies 16.37% upside potential from current levels.
Bottom Line
The resilient business model, growing earnings base, solid dividend payout and growth history, and Strong Buy consensus rating from Top Wall Street analysts make WMT, O, and SYY stocks attractive investments for investors seeking reliable income.
