Dividend-paying stocks are a great way to generate passive income and can be considered a safe bet in the current uncertain market situation. This is where the TipRanks Stock Screener tool comes in handy. Today, we have shortlisted two stocks – AllianceBernstein(NYSE:AB) and Enterprise Products Partners(NYSE:EPD) – that offer a dividend yield of more than 7% and have received Strong Buy recommendations from Wall Street analysts. Finally, these stocks carry an Outperform Smart Score of “Perfect 10.”
Let’s take a closer look at both stocks.
AllianceBernstein
The global investment management firm offers research and diversified investment services to institutional investors, individuals, and private wealth clients in major world markets. It has a strong track record of generating returns for shareholders.
Further, AB’s attractive dividend yield is 8.52% and remains above the financial sector’s average yield of 2.1%. The company’s strong private wealth business and expanding alternative business support its capital deployment moves.
It is worth mentioning that research firm TD Cowen initiated coverage of AB stock with a Buy rating and named it a Top Pick for 2024.
Is AB Stock a Buy?
Wall Street is bullish about AB stock. It has received four Buy and one Hold recommendations for a Strong Buy consensus rating. The analysts’ average price target of $35.50 implies 16.9% upside potential. The stock has declined 1% in the past six months.
Enterprise Products Partners
EPD is a North American provider of midstream energy services to producers and consumers of natural gas, natural gas liquids, crude oil, refined products, and petrochemicals. The company has an impressive history of raising its dividend for 25 consecutive years.
Besides for its solid dividend growth history, the company offers a compelling yield of 7.43%, supporting its bull case. The company’s financial strength, on the back of robust demand for its offerings, supports EPD’s commitment to creating value for shareholders through consistently increasing dividend distributions.
Last month, Mizuho Securities analyst Gabe Moreen reiterated a Buy rating on EPD stock with a price target of $33 (22.2% upside potential). The analyst is optimistic about the company’s backlog expansion capacity. Also, he believes that fears surrounding potential NGL infrastructure oversupply are unlikely to have a significant impact on EPD’s overall outlook.
Is EPD a Good Stock to Buy?
The Street is highly optimistic about EPD, giving it a Strong Buy consensus rating based on eight Buys and one Hold. The average stock price target of $31.67 implies 17.3% upside potential from here. The stock is up 5.6% over the past six months.
Ending Thoughts
Investors seeking a reliable passive income stream could consider both AB and EPD stocks. Both companies boast strong fundamentals and impressive dividend distribution histories. Furthermore, the backing of analysts and the “Perfect 10” Smart Score point to their upside potential.
