7 Dividend Stocks To Buy That Analysts Love: AT&T, Best Buy And More
The S&P 500 has slumped to open 2022, and rising interest rates could further pressure stock valuations in coming months. Whether the market is up, down or sideways, dividends are one steady, reliable source of income for investors, but dividends are only as reliable as the companies that pay them.
A high dividend is meaningless if the stock's losses more than offset the yield. Ideally, investors should identify dividend stocks that also have significant valuation upside.
Here are seven dividend stocks to buy with at least 3% yields and Buy ratings from the Bank of America analyst team.
Simon Property Group NYSE:SPG
Simon Property Group is a real estate investment trust owns, develops and manages retail real estate, primarily regional malls, outlet centers, and community and lifestyle centers.
Analyst
Bank of America has a Buy rating and
AT&T NYSE:T
Telecom giant AT&T recently announced it will raise prices on some of its legacy unlimited and mobile share data plans beginning
First, he says AT&T is betting its network and other improvements are worth customers paying more. Second, AT&T is betting that Verizon Communications Inc. NYSE:VZ and T-Mobile Us Inc NASDAQ:TMUS won't respond to the price hike with an aggressive marketing push to lure aggrieved customers away. AT&T shares pay a 5.4% dividend.
Bank of America has a Buy rating and
Verizon Communications Inc. NYSE:VZ
Verizon is one of AT&T's two largest competitors and is another attractive dividend stock that Barden recommends. He says Verizon has an extremely defensible subscriber base and is more profitable than its largest competitors.
In addition, he says Verizon has a stronger balance sheet following asset divestitures and is well-positioned to generate earnings growth outpacing its rivals. Barden estimates 2022 free cash flow of more than
Bank of America has a Buy rating and
See Also: Best Dividend Paying Stocks
IBM NYSE:IBM
IBM offers information technology products to the software, infrastructure, and services industries.
Analyst Wamsi Mohan says IBM's portfolio has been resilient in a slowing macro environment. After a recent call with IBM management, Mohan says tech spending should outpace GDP growth, and IBM should see elevated European demand until the conflict in
Bank of America has a Buy rating and
Philip Morris International Inc. NYSE:PM
Philip Morris is one of the world's largest global tobacco producers. It's been a volatile year for Philip Morris so far in 2022 given the company had significant operations in
Analyst
Bank of America has a Buy rating and
Best Buy Co Inc NYSE:BBY
Best buy is one of the largest consumer electronics retailers.
Retailers have had a rough first quarter earnings season, and analyst
Bank of America has a Buy rating and
Williams Companies Inc NYSE:WMB
Williams is a domestic U.S. natural gas infrastructure company.
The energy sector is one of the few silver linings in a brutal market so far this year, and Williams shares are actually up 35.9% year-to-date as energy and natural gas prices have soared. Even after the big run, analyst
Bank of America has a Buy rating and