With all of the major indices making solid moves higher in 2024, we were very interested to see what the top prognosticators across Wall Street think is in store for 2025 as we start the second quarter of the new century. Not surprisingly, many of the firms we cover are optimistic going forward despite some trepidation after the big gains.

Every year, the top Wall Street firms release a list of their top stock picks for the next 12 months. Typically, these are companies that analysts have an incredible conviction for. 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. This can increase the total return potential for investors.

The research team at J.P. Morgan is out with the firm’s 2025 Year Ahead Best Idea list, and we found five companies that look like outstanding ideas for growth and income investors. All pay dependable high-yield dividends and have sizable upside to the assigned price target.

Why we recommend J.P. Morgan stocks

J.P. Morgan is an acknowledged leader in the investment landscape on Wall Street and worldwide. The firm’s top-notch research department continues to provide clients with the best ideas across the investing spectrum, and this is likely to continue for years.

AT&T

The legacy telecommunications company has been undergoing a lengthy restructuring while lowering its dividend, which still stands at 4.90%. AT&T Inc. (NYSE: T) provides worldwide telecommunications, media, and technology services. Its Communications segment offers wireless voice and data communications services.

AT&T sells through its company-owned stores, agents, and third-party retail stores:

• Handsets
• Wireless data cards
• Wireless computing devices
• Carrying cases
• Hands-free devices

AT&T also provides:

• DataVoice
• Security
• Cloud solutions
• Outsourcing
• Managed and professional services

Customer premises equipment for multinational corporations, small and mid-sized businesses, and governmental and wholesale customers.
In addition, this segment offers residential customers broadband fiber and legacy telephony voice communication services.

It markets its communications services and products under:

• AT&T
• Cricket
• AT&T PREPAID
• AT&T Fiber

The company’s Latin America segment provides wireless services in Mexico and video services in Latin America. This segment markets its services and products under the AT&T and Unefon brands.

The J.P. Morgan price target is set at $28.

ConocoPhillips

This large-cap integrated energy company offers investors substantial value and a solid 3.10% dividend. ConocoPhillips (NYSE: COP) explores for, produces, transports, and markets crude oil, bitumen, natural gas, liquefied natural gas, and natural gas liquids worldwide.

Conoco’s portfolio includes:

• Resource-rich North American tight oil and oil sands assets
• Lower-risk legacy assets in North America, Europe, Asia, and Australia
• Various international developments and an inventory of conventional and unconventional exploration prospects

In November, the company completed its massive $22.5 billion purchase of Marathon Oil. Per the merger agreement, each share of Marathon Oil common stock was converted into the right to receive 0.255 shares of ConocoPhillips common stock at the adequate time of the merger, with cash instead of fractional shares.

Many Wall Street analysts, including the J.P. Morgan team, feel Conoco can accelerate growth from a reloaded portfolio depth in the Bakken and Eagle Ford with visibility on future growth.

The J.P. Morgan price target for the shares is $123.

Digital Realty Trust

Digital Realty Trust Inc. (NYSE: DLR) pays a solid 2.70% dividend as an industry leader and probably the best and safest pure-play for AI exposure. It brings companies and data together by delivering the full spectrum of data center, colocation, and interconnection solutions.

PlatformDIGITAL, the company’s global data center platform, provides customers with a secure data meeting place and a proven Pervasive Datacenter Architecture (PDx) solution methodology for powering innovation and efficiently managing Data Gravity challenges.

Digital Realty gives its customers access to the connected data communities that matter to them. Its global data center footprint includes over 300 facilities in 50 metro areas in 25 countries on six continents. Some of the biggest companies in the tech industry, including Nvidia Corp. (NASDAQ: NVDA), Advanced Micro Devices Inc. (NASDAQ: AMD), and Oracle Corp. (NYSE: ORCL), are using Digital Realty Trust’s data center and cooling solutions.

The company announced this last year via a press release:

Digital Realty has commenced construction of its third data center at its NRT campus in Inzai, Chiba Prefecture, in Japan. Utilizing PlatformDIGITAL, the facility is expected to open in December 2025 and will significantly increase the availability of state-of-the-art AI-ready infrastructure capacity in Japan. This announcement follows the recent launch of NRT12 on the same campus, solidifying Digital Realty’s commitment to providing customers with best-in-class data center solutions in Japan.

The J.P. Morgan target price is set at $185.

PNC Financial Services

This bank has a vast client base, pays a hefty 3.27% dividend, and is among the top 10 largest U.S. banks by assets. The PNC Financial Services Group Inc. (NYSE: PNC) operates through three segments:

• Retail Banking
• Corporate & Institutional Banking,
• Asset Management Group

The company’s Retail Banking segment offers:

• Checking, savings, and money market accounts, as well as time deposits
• Residential mortgages, home equity loans, and lines of credit
• Auto loans, credit cards; education loans, and personal and small business loans and lines of credit
• Brokerage, insurance, and investment and cash management services

This segment serves consumer and small business customers through branches, digital channels, ATMs, and phone-based customer contact centers.

The Corporate & Institutional Banking segment provides:

• Secured and unsecured loans, letters of credit, and equipment leases
• Cash and investment management services
• Receivables and disbursement management services
• Funds transfer services
• International payment services
• Access to online/mobile information management and reporting
• Securities underwriting, loan syndications, customer-related trading
• Mergers and acquisitions and equity capital markets advisory-related services
• Commercial loan servicing and technology solutions

It serves mid-sized and large corporations as well as government and not-for-profit entities.

PNC Financial Service Groups Asset Management Group segment offers:

• Investment and retirement planning, customized investment management, credit and cash management solutions, and trust management and administration services for high-net-worth and Ultra-high net worth individuals and their families
• Multi-generational family planning services for ultra-high-net-worth individuals and their families

It provides outsourced chief investment officers, custody, private real estate, cash and fixed-income client solutions, and retirement plan fiduciary investment services for institutional clients.

The J.P. Morgan target price objective is $206.50.

Regency Centers

With a 3.86% dividend, this is a quality real estate idea for 2025. Regency Centers Corp. (NASDAQ: REG) is a preeminent national owner, operator, and developer of shopping centers in suburban trade areas with compelling demographics.

The company’s portfolio includes thriving properties merchandised with highly productive:

• Grocers
• Restaurants
• Service providers
• Best-in-class retailers that connect to their neighborhoods, communities, and customers

The company raised the shareholder dividend by 5.2% in December. That marked the 11th year in a row for a dividend increase. The company has steadily lifted its dividend since 2014.

Operating as a fully integrated real estate company, Regency Centers is a qualified real estate investment trust (REIT) that is self-administered and self-managed and a member of the S&P 500 Index.

J.P. Morgan’s target price for the shares is $80.

Goldman Sachs Loves Five Large-Cap Technology Giants for 2025

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