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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

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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 -4.60%  yielding 1.80%, the 1.90% dividend yield for the entire S&P 500 index /zigman2/quotes/210599714/realtime SPX -1.57%  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 -1.57% , the S&P 400 Mid Cap Index /zigman2/quotes/210599897/delayed MID -1.41%  and the S&P Small Cap 600 Index /zigman2/quotes/210599868/delayed SML -1.19% ), 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

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$ 17.56
+0.06 +0.34%
Volume: 1.04M
Jan. 27, 2020 4:10p
P/E Ratio
16.21
Dividend Yield
6.83%
Market Cap
$1.97 billion
Rev. per Employee
$2.83M
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$ 21.61
-0.58 -2.61%
Volume: 11.80M
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P/E Ratio
170.97
Dividend Yield
7.03%
Market Cap
$26.90 billion
Rev. per Employee
$1.63M
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$ 8.61
-0.22 -2.49%
Volume: 721,940
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P/E Ratio
18.10
Dividend Yield
6.74%
Market Cap
$1.34 billion
Rev. per Employee
$532,024
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$ 33.96
-1.81 -5.06%
Volume: 17.28M
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Dividend Yield
5.89%
Market Cap
$49.52 billion
Rev. per Employee
$328,150
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$ 22.44
+0.04 +0.18%
Volume: 3.94M
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P/E Ratio
27.87
Dividend Yield
4.63%
Market Cap
$11.59 billion
Rev. per Employee
$10.19M
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$ 30.17
-0.36 -1.18%
Volume: 3.17M
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P/E Ratio
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Dividend Yield
4.51%
Market Cap
$22.75 billion
Rev. per Employee
$803,871
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US : U.S.: NYSE
$ 24.06
-0.06 -0.25%
Volume: 531,718
Jan. 27, 2020 4:10p
P/E Ratio
276.55
Dividend Yield
4.32%
Market Cap
$1.93 billion
Rev. per Employee
$4.77M
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/zigman2/quotes/209819908/composite
US : U.S.: NYSE
$ 11.90
-0.20 -1.65%
Volume: 1.84M
Jan. 27, 2020 4:10p
P/E Ratio
10.19
Dividend Yield
4.03%
Market Cap
$3.93 billion
Rev. per Employee
$326,606
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/zigman2/quotes/200735463/composite
US : U.S.: NYSE
$ 85.05
-4.21 -4.72%
Volume: 3.37M
Jan. 27, 2020 4:10p
P/E Ratio
15.36
Dividend Yield
4.61%
Market Cap
$36.65 billion
Rev. per Employee
$11.41M
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/zigman2/quotes/209634297/composite
US : U.S.: NYSE
$ 52.70
-1.79 -3.29%
Volume: 7.80M
Jan. 27, 2020 4:10p
P/E Ratio
11.31
Dividend Yield
4.02%
Market Cap
$35.38 billion
Rev. per Employee
$1.59M
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/zigman2/quotes/201087859/composite
US : U.S.: NYSE
$ 27.07
+0.39 +1.46%
Volume: 878,360
Jan. 27, 2020 4:10p
P/E Ratio
49.97
Dividend Yield
3.40%
Market Cap
$2.45 billion
Rev. per Employee
$5.39M
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/zigman2/quotes/205410375/composite
US : U.S.: NYSE
$ 38.10
-1.03 -2.63%
Volume: 4.65M
Jan. 27, 2020 4:10p
P/E Ratio
9.98
Dividend Yield
3.75%
Market Cap
$16.95 billion
Rev. per Employee
$395,083
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/zigman2/quotes/200690829/composite
US : U.S.: NYSE
$ 75.09
+0.42 +0.56%
Volume: 740,218
Jan. 27, 2020 4:10p
P/E Ratio
42.05
Dividend Yield
3.12%
Market Cap
$3.17 billion
Rev. per Employee
$4.11M
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/zigman2/quotes/205160666/composite
US : U.S.: NYSE
$ 86.05
-0.11 -0.13%
Volume: 359,598
Jan. 27, 2020 4:10p
P/E Ratio
15.03
Dividend Yield
3.21%
Market Cap
$1.45 billion
Rev. per Employee
$236,646
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/zigman2/quotes/205323712/composite
US : U.S.: NYSE
$ 22.05
-0.81 -3.54%
Volume: 5.92M
Jan. 27, 2020 4:10p
P/E Ratio
102.37
Dividend Yield
3.27%
Market Cap
$14.86 billion
Rev. per Employee
$346,621
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/zigman2/quotes/210488727/composite
US : U.S.: NYSE
$ 21.65
-1.45 -6.28%
Volume: 18.99M
Jan. 27, 2020 4:10p
P/E Ratio
N/A
Dividend Yield
3.33%
Market Cap
$20.28 billion
Rev. per Employee
$399,917
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/zigman2/quotes/207417523/composite
US : U.S.: NYSE
$ 40.70
-0.23 -0.56%
Volume: 798,547
Jan. 27, 2020 4:10p
P/E Ratio
119.85
Dividend Yield
2.85%
Market Cap
$6.01 billion
Rev. per Employee
$1.85M
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/zigman2/quotes/209104354/composite
US : U.S.: NYSE
$ 53.11
-1.44 -2.64%
Volume: 10.65M
Jan. 27, 2020 4:10p
P/E Ratio
10.24
Dividend Yield
2.64%
Market Cap
$88.29 billion
Rev. per Employee
$831,709
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/zigman2/quotes/205272400/composite
US : U.S.: NYSE
$ 54.65
-1.90 -3.36%
Volume: 1.45M
Jan. 27, 2020 4:10p
P/E Ratio
13.66
Dividend Yield
2.93%
Market Cap
$11.22 billion
Rev. per Employee
$1.47M
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/zigman2/quotes/208559109/composite
US : U.S.: Nasdaq
$ 19.25
-0.24 -1.23%
Volume: 913,486
Jan. 27, 2020 4:00p
P/E Ratio
11.16
Dividend Yield
2.70%
Market Cap
$3.24 billion
Rev. per Employee
$434,061
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/zigman2/quotes/209956077/composite
US : U.S.: NYSE
$ 86.10
+0.12 +0.14%
Volume: 10.33M
Jan. 27, 2020 4:10p
P/E Ratio
24.06
Dividend Yield
2.83%
Market Cap
$218.90 billion
Rev. per Employee
$615,159
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/zigman2/quotes/207605056/composite
US : U.S.: NYSE
$ 61.04
-1.58 -2.52%
Volume: 7.20M
Jan. 27, 2020 4:10p
P/E Ratio
8.30
Dividend Yield
2.75%
Market Cap
$68.71 billion
Rev. per Employee
$3.37M
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/zigman2/quotes/207741460/composite
US : U.S.: NYSE
$ 76.71
-1.71 -2.18%
Volume: 15.86M
Jan. 27, 2020 4:10p
P/E Ratio
9.54
Dividend Yield
2.66%
Market Cap
$171.21 billion
Rev. per Employee
$479,167
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/zigman2/quotes/207530935/composite
US : U.S.: NYSE
$ 17.30
-0.67 -3.73%
Volume: 3.76M
Jan. 27, 2020 4:10p
P/E Ratio
N/A
Dividend Yield
3.01%
Market Cap
$8.03 billion
Rev. per Employee
$339,268
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/zigman2/quotes/207946232/composite
US : U.S.: NYSE
$ 523.81
-13.03 -2.43%
Volume: 516,487
Jan. 27, 2020 4:10p
P/E Ratio
18.40
Dividend Yield
2.52%
Market Cap
$83.32 billion
Rev. per Employee
$952,953
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/zigman2/quotes/200883544/composite
US : U.S.: Nasdaq
$ 58.04
-1.16 -1.96%
Volume: 195,403
Jan. 27, 2020 4:00p
P/E Ratio
205.60
Dividend Yield
2.41%
Market Cap
$1.84 billion
Rev. per Employee
$788,215
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/zigman2/quotes/209605300/composite
US : U.S.: NYSE
$ 47.61
-0.13 -0.27%
Volume: 223,225
Jan. 27, 2020 4:10p
P/E Ratio
61.70
Dividend Yield
2.52%
Market Cap
$2.86 billion
Rev. per Employee
$1.74M
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/zigman2/quotes/208854639/composite
US : U.S.: NYSE
$ 116.91
-9.60 -7.59%
Volume: 4.92M
Jan. 27, 2020 4:10p
P/E Ratio
12.79
Dividend Yield
2.67%
Market Cap
$26.52 billion
Rev. per Employee
$123,297
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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.

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