Top Wall Street analysts prefer these dividend stocks to strengthen portfolios

Core Viewpoint - The Federal Reserve's recent interest rate cut of 50 basis points creates a favorable environment for dividend-paying stocks, with Wall Street analysts providing insights on potential investment opportunities in this sector [1]. Group 1: Northern Oil and Gas (NOG) - Northern Oil and Gas announced a dividend of 42 cents per share, reflecting an 11% year-over-year increase, with a dividend yield of 4.8% [2]. - Mizuho analyst William Janela initiated a buy rating on NOG with a price target of $47, citing the company's unique business model and advantages such as higher cash operating margins and a solid M&A track record [3][4]. - Janela argues that NOG's scale and diversification across major U.S. basins provide capital flexibility, allowing for an active investment approach [4]. Group 2: Darden Restaurants (DRI) - Darden Restaurants reported lower-than-expected results for Q1 FY25 but saw a share price increase due to maintained full-year guidance and a partnership with Uber [5]. - The company repurchased approximately 1.2 million shares for $172 million and paid $166 million in dividends, offering a quarterly dividend of $1.40 per share, resulting in a 3.3% dividend yield [6]. - BTIG analyst Peter Saleh reaffirmed a buy rating on DRI, raising the price target to $195, driven by sales growth from promotions and the Uber Eats partnership [7][8]. Group 3: Target (TGT) - Target announced a 1.8% increase in its quarterly dividend to $1.12 per share, marking the 53rd consecutive year of dividend increases, with a dividend yield of 2.9% [9]. - The company reported better-than-expected Q2 FY24 results, paying $509 million in dividends and repurchasing shares worth $155 million [10]. - Jefferies analyst Corey Tarlowe reaffirmed a buy rating on TGT with a price target of $195, highlighting the potential for improved margins and sales growth under the new CFO Jim Lee [11][12].