Every year, the top Wall Street firms release a list of their top stock picks for the coming 12 months, and typically, they are companies that the stock analysts have incredibly high conviction in. In addition, they often have good upside to the assigned price target and are bestowed with either a Buy or Overweight rating depending on the company providing the coverage.
At 24/7 Wall St., we like to cover these top stocks and then screen the companies looking for those paying the highest dividends to investors, as this can increase the total return potential for investors.
We always like to remind our readers about the impact total return has on portfolios because it is one of the best ways to help improve the chances for overall investing success. Again, total return is the combined increase in a stock’s value plus dividends. For instance, if you buy a stock at $20 that pays a 3% dividend, and it goes up to $22 in a year, your total return is 13%—10% for the increase in stock price and 3% for the dividends paid.
We screened the 23 top stocks from the Bank of America Securities US1 list for 2024 and found five companies that are favorite 2024 picks that also pay stellar dividends. All are rated Overweight.
FedEx
Given the massive increase in internet shopping and sales, the delivery giant has a strong path for growth and pays a solid 2.21% dividend. FedEx Corporation (NYSE: FDX) provides transportation, e-commerce, and business services internationally and internationally.
It operates through:
- FedEx Express,
- FedEx Ground,
- FedEx Freight, and
- FedEx Services.
The FedEx Express segment offers express transportation, small-package ground delivery, freight transportation, and time-critical transportation services.
The FedEx Ground segment provides small-package ground delivery services.
The FedEx Freight segment offers less-than-truckload freight transportation services.
The FedEx Services segment provides:
- Sales
- Marketing
- Information technology
- Communications
- customer service,
- Technical support
- Billing and collection
- Back-office support services
In addition, the company offers supply chain management solutions, air and ocean cargo transportation, specialty transportation, customs brokerage, and trade management tools and data.
Fidelity National Information Services
While off the radar, this company pays a hefty 3.27% dividend and has solid upside potential. Fidelity National Information Services, Inc. (NYSE: FIS) provides global technology solutions for financial institutions and businesses.
It operates through:
- Banking Solutions
- Merchant Solutions
- Capital Market Solutions segments
The Banking Solutions segment provide:
- Core processing and ancillary applications
- Mobile and online banking
- Fraud, risk management, and compliance
- Electronic funds transfer and network
- Card and retail payment
- Wealth and Retirement
- Item processing and output solutions
The Merchant Solutions segment offers small- to medium-sized businesses acquiring, enterprise acquiring, and e-commerce solutions.
The Capital Market Solutions segment provides investment operations and data, lending, trading and processing, and treasury and risk solutions.
Lowe’s
With fewer homes for sale, this big-box retailer makes sense and pays a 1.94% dividend. Lowe’s Companies, Inc. (NYSE: LOW) operates as a home improvement retailer in the United States.
The company offers construction, maintenance, repair, remodeling, and decorating products.
It also provides home improvement products, such as:
- Appliances
- Seasonal and outdoor living, lawn and garden
- Lumber
- Kitchens and baths
- Tools
- Paint
- Millwork
- Hardware
- Flooring
- Rough plumbing
- Building materials
- Décor
- Electrical
In addition, the company offers installation services through independent contractors in various product categories and extended protection plans and repair services.
It sells national merchandise and private brand products to professional customers, homeowners, and renters. The company also sells its products through Lowes.com website; and through mobile applications.
Schlumberger
This legacy oilfield services company pays a 2.26% dividend and has a substantial total return potential. Schlumberger Ltd. (NYSE: SLB) engages in the provision of technology for the energy industry worldwide.
The company operates through four divisions:
- Digital & Integration
- Reservoir Performance
- Well Construction
- Production Systems
The company provides:
- Field development
- Hydrocarbon production
- Carbon management
- Integration of adjacent energy systems
- Reservoir interpretation
- Data processing services for exploration data
- Sound construction and production improvement services and products
It also offers subsurface geology and fluids evaluation information, open and cased hole services, exploration and production pressure and flow-rate measurement services, pressure pumping, well stimulation, and coiled tubing equipment solutions.
In addition, the company offers:
- Mud logging,
- Directional drilling
- Measurement-while-drilling, and logging-while-drilling services
- Engineering support services
- Supplies drilling fluid systems;
- Designs, manufactures, and markets roller cone and fixed cutter drill bits; bottom-hole-assembly and borehole enlargement technologies
- Well cementing products and services
- Well planning and drilling
- Engineering, supervision, logistics, procurement
- Contracting of third parties, as well as drilling rig management solutions; and drilling equipment and services, as well as land drilling rigs and related services.
Further, it provides:
- Artificial lift production equipment and optimization services
- Supplies packers, safety valves, sand control technology, and various intelligent, well completions technology and equipment
- Designs and manufactures valves, chokes, actuators, and surface trees
- OneSubsea, an integrated solutions, products, systems, and services, including wellheads, subsea trees, manifolds and flowline connectors, control systems, connectors, and services.
U.S. Bancorp
This Super-Regional bank offers a hefty 4.74% dividend and plenty of upside potential. U.S. Bancorp (NYSE: USB), a financial services holding company, provides various financial services to individuals, businesses, institutional organizations, governmental entities, and other financial institutions in the United States.
It operates in:
- Corporate and Commercial Banking
- Consumer and Business Banking
- Wealth Management and Investment Services
- Payment Services, and Treasury
- Corporate Support segments
The company offers:
- Depository services, including checking accounts, savings accounts, and time certificate contracts
- Lending services, such as traditional credit products; and credit card services
- Lease financing and import/export trade
- Asset-backed lending, agricultural finance, and other products.
In addition, it provides ancillary services comprising capital markets, treasury management, and receivable lock-box collection services to corporate and governmental entity customers.
Further, the company offers asset management and fiduciary services for individuals, estates, foundations, business corporations, and charitable organizations.
Additionally, it provides investment and insurance products to its customers, principally within its markets, and fund administration services to mutual and other funds. Furthermore, the company provides corporate and purchasing cards and corporate trust services.
The company also offers merchant processing, investment management, ATM processing, mortgage banking, insurance, brokerage, and leasing services.
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