Philip van Doorn

Deep Dive Archives | Email alerts

Dec. 14, 2019, 8:59 a.m. EST

These are Wall Street’s top dividend stock picks for 2020

Analysts expect this year’s good performance for the group to continue

new
Watchlist Relevance
LEARN MORE

Want to see how this story relates to your watchlist?

Just add items to create a watchlist now:

  • X
    U.S. 10 Year Treasury Note (TMUBMUSD10Y)
  • X
    S&P 500 Index (SPX)

or Cancel Already have a watchlist? Log In

By Philip van Doorn, MarketWatch


Kinder Morgan Canada via Reuters
Williams Cos. is an oil and gas pipeline operator with a dividend yield of 6.55%.

U.S. stocks with attractive dividend yields have performed very well this year, for obvious reasons: Interest rates have declined at home and investors in Europe and Japan — where government and central-bank policies have pushed bond yields well into the negative — are desperate to find investments that will give them income. This means the money flow continues to support U.S. dividend stocks.

With 10-year U.S. Treasury notes /zigman2/quotes/211347051/realtime BX:TMUBMUSD10Y -0.36%  yielding 1.80%, the 1.90% dividend yield for the entire S&P 500 index /zigman2/quotes/210599714/realtime SPX +1.05%  looks pretty good, considering that you should also expect your share prices to rise over the long term.

A different performance trend for Wall Street’s favorite dividend stocks

In our recent series listing Wall Street analysts’ favorite large-cap, midcap and small-cap stocks for growth in 2020, we’ve seen a repeat pattern: Many of them are expected to bounce back after underperformance (relative to the broad indexes) this year. Mark Hulbert explained that the worst stocks in a given year tend to rebound the following year.

But with the dividend stocks we see something different — all but two of the 28 stocks listed below have had positive returns this year (with dividends reinvested), and all but six have seen double-digit returns.

So if you are interested in any of the stocks on the following list, keep in mind that you are not looking at a list of recovery plays. You’re in it for the dividend yield and hopefully a rising share price over the long term (meaning several years). Do your own research to determine whether you feel comfortable that the company’s strategy will keep it competitive for the next decade.

Wall Street’s favorite dividend stocks

Starting with the S&P 1500 Composite Index (made up of the S&P 500 /zigman2/quotes/210599714/realtime SPX +1.05% , the S&P 400 Mid Cap Index /zigman2/quotes/219506813/composite MID +1.01%  and the S&P Small Cap 600 Index /zigman2/quotes/210599868/delayed SML +0.67% ), there are 28 stocks with dividend yields of at least 2.50% as well as at least 75% “buy” or equivalent ratings among five or more analysts.

Here they are, sorted by dividend yield:

Company Ticker Dividend yield Share 'buy' ratings Share neutral ratings Share 'sell' ratings Closing price - Dec. 11 Consensus price target Implied 12-month upside potential Total return - 2019 through Dec. 11
Redwood Trust Inc. /zigman2/quotes/204538394/composite RWT 7.29% 100% 0% 0% $16.45 $18.00 9% 15%
Williams Cos. /zigman2/quotes/205467183/composite WMB 6.55% 79% 21% 0% $23.19 $27.59 19% 10%
Archrock Inc. /zigman2/quotes/206867288/composite AROC 6.39% 83% 17% 0% $9.08 $13.92 53% 28%
Schlumberger NV /zigman2/quotes/201012972/composite SLB 5.21% 81% 19% 0% $38.40 $42.28 10% 12%
Medical Properties Trust Inc. /zigman2/quotes/201233436/composite MPW 5.01% 75% 25% 0% $20.74 $22.08 6% 36%
Weyerhaeuser Co. /zigman2/quotes/200438029/composite WY 4.64% 77% 15% 8% $29.33 $31.95 9% 41%
Easterly Government Properties Inc. /zigman2/quotes/209079809/composite DEA 4.51% 83% 17% 0% $23.07 $24.50 6% 55%
F.N.B. Corp. /zigman2/quotes/209819908/composite FNB 3.96% 88% 12% 0% $12.13 $13.81 14% 29%
Valero Energy Corp. /zigman2/quotes/200735463/composite VLO 3.88% 80% 20% 0% $92.89 $108.78 17% 29%
Marathon Petroleum Corp. /zigman2/quotes/209634297/composite MPC 3.71% 89% 11% 0% $57.11 $80.65 41% 1%
Essential Properties Realty Trust Inc. /zigman2/quotes/201087859/composite EPRT 3.65% 80% 20% 0% $25.23 $26.25 4% 88%
Citizens Financial Group Inc. /zigman2/quotes/205410375/composite CFG 3.47% 76% 19% 5% $39.14 $41.30 6% 37%
Agree Realty Corp. /zigman2/quotes/200690829/composite ADC 3.30% 91% 9% 0% $70.83 $82.90 17% 23%
Dine Brands Global Inc. /zigman2/quotes/205160666/composite DIN 3.29% 100% 0% 0% $83.82 $96.50 15% 28%
Baker Hughes Co. Class A /zigman2/quotes/205323712/composite BKR 3.17% 86% 14% 0% $22.68 $28.75 27% 9%
Halliburton Co. /zigman2/quotes/210488727/composite HAL 3.08% 84% 16% 0% $23.38 $26.02 11% -9%
Cousins Properties Inc. /zigman2/quotes/207417523/composite CUZ 2.90% 83% 17% 0% $40.01 $44.40 11% 31%
Morgan Stanley /zigman2/quotes/209104354/composite MS 2.83% 77% 19% 4% $49.45 $53.60 8% 28%
Lincoln National Corp. /zigman2/quotes/205272400/composite LNC 2.77% 79% 21% 0% $57.71 $70.79 23% 15%
Home BancShares Inc. /zigman2/quotes/208559109/composite HOMB 2.74% 78% 22% 0% $18.96 $21.63 14% 19%
Merck & Co. Inc. /zigman2/quotes/209956077/composite MRK 2.74% 81% 19% 0% $88.98 $97.50 10% 19%
ConocoPhillips /zigman2/quotes/207605056/composite COP 2.72% 91% 9% 0% $61.68 $73.63 19% 1%
Citigroup Inc. /zigman2/quotes/207741460/composite C 2.70% 83% 13% 4% $75.55 $84.25 12% 49%
TechnipFMC PLC /zigman2/quotes/207530935/composite FTI 2.69% 81% 16% 3% $19.34 $28.56 48% 1%
BlackRock Inc. /zigman2/quotes/207946232/composite BLK 2.67% 82% 18% 0% $493.91 $519.80 5% 30%
InterDigital Inc. /zigman2/quotes/200883544/composite IDCC 2.60% 100% 0% 0% $53.75 $92.60 72% -17%
American Assets Trust Inc. /zigman2/quotes/209605300/composite AAT 2.59% 83% 0% 17% $46.35 $50.50 9% 18%
Royal Caribbean Cruises Ltd. /zigman2/quotes/208854639/composite RCL 2.53% 75% 25% 0% $123.32 $140.47 14% 28%
Source: FactSet

You can click the tickers for more about each company, including business profiles and price ratios.

Don’t miss: These are the 20 best-performing stocks of the past decade, and some of them will surprise you

<STRONG>Create an email alert for Philip van Doorn’s Deep Dive columns <INTERNAL-PAGE URL="/tools/alerts/newsColumn.asp">here</INTERNAL-PAGE>.</STRONG>

/zigman2/quotes/211347051/realtime
add Add to watchlist BX:TMUBMUSD10Y
BX : Tullett Prebon
0.67
-0.0024 -0.36%
Volume: 0.00
Sept. 23, 2020 12:33a
loading...
/zigman2/quotes/210599714/realtime
US : S&P US
3,315.57
+34.51 +1.05%
Volume: 2.36B
Sept. 22, 2020 5:07p
loading...
/zigman2/quotes/210599714/realtime
US : S&P US
3,315.57
+34.51 +1.05%
Volume: 2.36B
Sept. 22, 2020 5:07p
loading...
/zigman2/quotes/219506813/composite
US : U.S.: NYSE Arca
$ 41.67
+0.42 +1.01%
Volume: 470.00
Sept. 22, 2020 3:26p
loading...
/zigman2/quotes/210599868/delayed
US : S&P US
846.18
+5.65 +0.67%
Volume: 464.98M
Sept. 22, 2020 5:07p
loading...
/zigman2/quotes/204538394/composite
US : U.S.: NYSE
$ 7.56
-0.11 -1.43%
Volume: 918,153
Sept. 22, 2020 4:00p
P/E Ratio
N/A
Dividend Yield
7.41%
Market Cap
$881.62 million
Rev. per Employee
$2.83M
loading...
/zigman2/quotes/205467183/composite
US : U.S.: NYSE
$ 20.81
+0.14 +0.68%
Volume: 15.38M
Sept. 22, 2020 4:00p
P/E Ratio
198.00
Dividend Yield
7.69%
Market Cap
$25.08 billion
Rev. per Employee
$1.63M
loading...
/zigman2/quotes/206867288/composite
US : U.S.: NYSE
$ 5.59
-0.13 -2.27%
Volume: 1.00M
Sept. 22, 2020 4:00p
P/E Ratio
N/A
Dividend Yield
10.38%
Market Cap
$874.87 million
Rev. per Employee
$532,024
loading...
/zigman2/quotes/201012972/composite
US : U.S.: NYSE
$ 17.33
+0.06 +0.35%
Volume: 8.86M
Sept. 22, 2020 4:00p
P/E Ratio
N/A
Dividend Yield
2.89%
Market Cap
$23.97 billion
Rev. per Employee
$328,150
loading...
/zigman2/quotes/201233436/composite
US : U.S.: NYSE
$ 16.69
-0.10 -0.60%
Volume: 4.31M
Sept. 22, 2020 4:00p
P/E Ratio
20.26
Dividend Yield
6.47%
Market Cap
$8.88 billion
Rev. per Employee
$10.19M
loading...
/zigman2/quotes/200438029/composite
US : U.S.: NYSE
$ 27.72
+0.87 +3.24%
Volume: 4.64M
Sept. 22, 2020 4:00p
P/E Ratio
67.45
Dividend Yield
0.00%
Market Cap
$20.04 billion
Rev. per Employee
$803,871
loading...
/zigman2/quotes/209079809/composite
US : U.S.: NYSE
$ 22.53
+0.42 +1.90%
Volume: 498,260
Sept. 22, 2020 4:00p
P/E Ratio
238.67
Dividend Yield
4.62%
Market Cap
$1.95 billion
Rev. per Employee
$4.77M
loading...
/zigman2/quotes/209819908/composite
US : U.S.: NYSE
$ 6.61
-0.06 -0.90%
Volume: 3.08M
Sept. 22, 2020 4:00p
P/E Ratio
6.71
Dividend Yield
7.26%
Market Cap
$2.16 billion
Rev. per Employee
$326,606
loading...
/zigman2/quotes/200735463/composite
US : U.S.: NYSE
$ 47.42
+0.06 +0.13%
Volume: 4.80M
Sept. 22, 2020 4:00p
P/E Ratio
18.40
Dividend Yield
8.27%
Market Cap
$19.31 billion
Rev. per Employee
$11.41M
loading...
/zigman2/quotes/209634297/composite
US : U.S.: NYSE
$ 31.04
-0.21 -0.67%
Volume: 9.79M
Sept. 22, 2020 4:00p
P/E Ratio
N/A
Dividend Yield
7.47%
Market Cap
$20.33 billion
Rev. per Employee
$1.59M
loading...
/zigman2/quotes/201087859/composite
US : U.S.: NYSE
$ 19.09
+0.71 +3.86%
Volume: 1.57M
Sept. 22, 2020 4:00p
P/E Ratio
30.71
Dividend Yield
4.82%
Market Cap
$1.90 billion
Rev. per Employee
$5.39M
loading...
/zigman2/quotes/205410375/composite
US : U.S.: NYSE
$ 24.51
-1.32 -5.11%
Volume: 8.54M
Sept. 22, 2020 4:00p
P/E Ratio
9.81
Dividend Yield
6.24%
Market Cap
$11.02 billion
Rev. per Employee
$395,083
loading...
/zigman2/quotes/200690829/composite
US : U.S.: NYSE
$ 64.23
+1.74 +2.78%
Volume: 358,652
Sept. 22, 2020 4:00p
P/E Ratio
33.04
Dividend Yield
3.74%
Market Cap
$3.37 billion
Rev. per Employee
$4.11M
loading...
/zigman2/quotes/205160666/composite
US : U.S.: NYSE
$ 56.26
+3.32 +6.27%
Volume: 404,151
Sept. 22, 2020 4:00p
P/E Ratio
N/A
Dividend Yield
0.00%
Market Cap
$869.23 million
Rev. per Employee
$236,646
loading...
/zigman2/quotes/205323712/composite
US : U.S.: NYSE
$ 14.40
+0.07 +0.49%
Volume: 4.56M
Sept. 22, 2020 4:00p
P/E Ratio
N/A
Dividend Yield
5.00%
Market Cap
$14.81 billion
Rev. per Employee
$346,621
loading...
/zigman2/quotes/210488727/composite
US : U.S.: NYSE
$ 13.33
+0.11 +0.83%
Volume: 10.21M
Sept. 22, 2020 4:00p
P/E Ratio
N/A
Dividend Yield
1.35%
Market Cap
$11.61 billion
Rev. per Employee
$399,917
loading...
/zigman2/quotes/207417523/composite
US : U.S.: NYSE
$ 27.84
+0.08 +0.29%
Volume: 1.02M
Sept. 22, 2020 4:00p
P/E Ratio
40.36
Dividend Yield
4.31%
Market Cap
$4.12 billion
Rev. per Employee
$1.85M
loading...
/zigman2/quotes/209104354/composite
US : U.S.: NYSE
$ 47.63
-0.73 -1.51%
Volume: 11.16M
Sept. 22, 2020 4:02p
P/E Ratio
8.60
Dividend Yield
2.94%
Market Cap
$76.25 billion
Rev. per Employee
$831,709
loading...
/zigman2/quotes/205272400/composite
US : U.S.: NYSE
$ 31.31
-0.23 -0.73%
Volume: 1.99M
Sept. 22, 2020 4:00p
P/E Ratio
27.73
Dividend Yield
5.11%
Market Cap
$6.10 billion
Rev. per Employee
$1.47M
loading...
/zigman2/quotes/208559109/composite
US : U.S.: Nasdaq
$ 14.68
-0.09 -0.58%
Volume: 729,868
Sept. 22, 2020 4:00p
P/E Ratio
11.67
Dividend Yield
3.54%
Market Cap
$2.44 billion
Rev. per Employee
$434,061
loading...
/zigman2/quotes/209956077/composite
US : U.S.: NYSE
$ 82.94
-0.19 -0.23%
Volume: 7.77M
Sept. 22, 2020 4:02p
P/E Ratio
20.19
Dividend Yield
2.94%
Market Cap
$210.26 billion
Rev. per Employee
$615,159
loading...
/zigman2/quotes/207605056/composite
US : U.S.: NYSE
$ 34.30
-0.06 -0.17%
Volume: 7.96M
Sept. 22, 2020 4:00p
P/E Ratio
16.83
Dividend Yield
4.90%
Market Cap
$36.85 billion
Rev. per Employee
$3.37M
loading...
/zigman2/quotes/207741460/composite
US : U.S.: NYSE
$ 43.29
-0.64 -1.46%
Volume: 25.80M
Sept. 22, 2020 4:02p
P/E Ratio
7.50
Dividend Yield
4.71%
Market Cap
$91.46 billion
Rev. per Employee
$479,167
loading...
/zigman2/quotes/207530935/composite
US : U.S.: NYSE
$ 6.79
+0.09 +1.34%
Volume: 4.68M
Sept. 22, 2020 4:02p
P/E Ratio
N/A
Dividend Yield
1.91%
Market Cap
$3.01 billion
Rev. per Employee
$339,268
loading...
/zigman2/quotes/207946232/composite
US : U.S.: NYSE
$ 550.80
-1.79 -0.32%
Volume: 565,647
Sept. 22, 2020 4:00p
P/E Ratio
19.36
Dividend Yield
2.64%
Market Cap
$84.26 billion
Rev. per Employee
$952,953
loading...
/zigman2/quotes/200883544/composite
US : U.S.: Nasdaq
$ 57.78
+0.43 +0.75%
Volume: 168,275
Sept. 22, 2020 4:00p
P/E Ratio
46.83
Dividend Yield
2.42%
Market Cap
$1.77 billion
Rev. per Employee
$788,215
loading...
/zigman2/quotes/209605300/composite
US : U.S.: NYSE
$ 23.80
+0.28 +1.19%
Volume: 424,872
Sept. 22, 2020 4:00p
P/E Ratio
31.24
Dividend Yield
4.20%
Market Cap
$1.41 billion
Rev. per Employee
$1.74M
loading...
/zigman2/quotes/208854639/composite
US : U.S.: NYSE
$ 62.37
+1.66 +2.73%
Volume: 5.06M
Sept. 22, 2020 4:03p
P/E Ratio
N/A
Dividend Yield
0.00%
Market Cap
$13.03 billion
Rev. per Employee
$123,297
loading...

Philip van Doorn covers various investment and industry topics. He has previously worked as a senior analyst at TheStreet.com. He also has experience in community banking and as a credit analyst at the Federal Home Loan Bank of New York.

This Story has 0 Comments
Be the first to comment
More News In
Investing

Story Conversation

Commenting FAQs »
Link to MarketWatch's Slice.