Warren Buffett, the legendary fortune teller of Omaha and arguably the most famous investor of all time, owes much of his success to his buy-and-hold approach, which tends to focus on blue-chip stocks. Berkshire Hathaway’s huge positions in dividend-paying companies like Bank of America Corp. New York Stock Exchange: PAC And Apple company. Nasdaq: Apple The company earns billions of dollars in dividends annually.
Stable dividend stocks can be a powerful defensive maneuver during periods of market turmoil — these companies tend to be well-established and less likely to falter amid broader volatility — and the passive income they provide can be reinvested through dividends for compound gains. However, a company’s earnings metrics provide only part of an investor’s broader view of that company as a potential investment target. That’s why it can be helpful for dividend-seeking investors to also consider what Wall Street more broadly thinks about a particular stock before jumping in.
In the dividend arena, there are three companies that stand out due to receiving a slew of recent buy ratings from Wall Street analysts, including Motorola Solutions Inc. New York Stock Exchange: MSINike company. New York Stock Exchange: OFand Townsquare Media Inc. New York Stock Exchange: TSQ.
Motorola Solutions: Premium demand in a growing industry
Motorola Solutions is a communications company specializing in radio, security, surveillance technology, and control systems and software. It operates independently from the Motorola smartphone brand, with the two companies split in 2011.
Motorola Solutions dividend payments
- Dividend yield
- 0.94%
- Annual profits
- $4.36
- Increasing track record profits
- 13 years old
- Annual earnings growth for 3 years
- 11.24%
- Dividend distribution ratio
- 47.75%
- Upcoming dividend payment
- January 15
MSI Dividend Date
Motorola Solutions’ recent performance has impressed investors: In Q3 2024, it reported a 9.2% year-over-year increase in revenue and operating cash flow growth.
This performance was driven by strong demand for the company’s security products, which have a range of applications, including policing, retail, border security, and more. Fortunately for Motorola, this demand shows no signs of slowing down and is likely to increase in the short term.
With eight out of nine analysts rating Motorola Solutions a Buy, the company’s consensus price target of $504.88 is more than 9% above current levels as of January 2, 2025. This upside potential exists despite the fact that MSI shares are up Already more than 48% in the year before that date as well.
Nike: Times are tough, but transformation is possible
2024 has been a tough year for Nike, with its shares falling nearly 30% in the year beginning January 2, 2024. The stock price has fallen amid unsuccessful direct-to-consumer outreach efforts, weak sales in Asian markets, and declining consumer spending in the United States.
Nike dividend payments
- Dividend yield
- 2.18%
- Annual profits
- $1.60
- Increasing track record profits
- 22 years old
- Annual earnings growth for 3 years
- 11.23%
- Dividend distribution ratio
- 49.38%
- Recent dividend payment
- January 2
Dividend distribution date
However, as we approach 2025, there are reasons for optimism. Former CEO Elliott Hill returned late in the year, helping beat consensus EPS estimates in his first quarter with the company. However, the company expects it will take time to rebuild – it expects a sharp drop in revenue for the current quarter while Hill aims to recover its business with wholesalers and return to focusing on top brands.
All of this means that now may be a good time for investors to buy the dip. Nike remains one of the world’s leading sports and athletic apparel companies, despite recent challenges.
The company maintains its strength as a dividend player, with a payout ratio of over 49% and a dividend yield of 2.13%. Given the recent decline in the stock price, analysts see Nike shares rising approximately 19% to the consensus price target of $89.58.
Townsquare Media: Revenues surge with launch of SummitMedia partnership
Townsquare Media is a small-cap digital media company with upside potential of more than 80%, according to analyst ratings. After a period of stock price volatility, the company recently announced a return to overall digital revenue growth in its November 2024 earnings report.
Townsquare Media Dividend Payments
- Dividend yield
- 7.90%
- Annual profits
- $0.79
- Dividend distribution ratio
- -29.15%
- Upcoming dividend payment
- February 1
TSQ Dividend Date
More importantly, the company’s partnership with SummitMedia, announced in October, will likely come to fruition in 2025.
The partnership expands Townsquare into new markets, including Honolulu, Birmingham, Omaha and Louisville.
Townsquare likely remains undervalued, based on its P/E ratio of 0.3. If you can continue to grow revenue, it will also be easier to maintain its impressive 8.5% dividend payout ratio.
Although it’s not a stable play like Motorola or Nike above, Townsquare offers some attractive prospects for dividend investors.
Before you consider Motorola solutions, you’ll want to hear this.
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