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Top analysts are upbeat on these 3 dividend stocks for stable income
COPConocoPhillips(COP) CNBC·2025-03-23 13:19

Core Viewpoint - Economic uncertainty and tariff wars are causing stock market volatility, but dividend-paying stocks can provide stability for investors [1] Group 1: Vitesse Energy (VTS) - Vitesse Energy is an energy company that primarily holds financial interests in oil and gas wells operated by leading U.S. operators [3] - The company recently acquired Lucero Energy, which is expected to enhance dividends and provide liquidity for further acquisitions [3][6] - Vitesse announced a quarterly dividend of 0.5625pershareforQ4,markinga70.5625 per share for Q4, marking a 7% increase from the previous quarter, with a dividend yield of 9.3% [4] - Jefferies analyst Lloyd Byrne reiterated a buy rating on VTS with a price target of 33, noting that Q4 EBITDA slightly missed consensus estimates due to lower production and acquisition costs [5] - The Lucero acquisition is seen positively as it adds to Vitesse's production and inventory, providing about 10 years of operational life [7] Group 2: Viper Energy (VNOM) - Viper Energy, a subsidiary of Diamondback Energy, focuses on owning and acquiring mineral and royalty interests in oil-weighted basins, particularly the Permian Basin [9] - The company announced a total capital return of 65 cents per share for Q4 2024, representing 75% of the cash available for distribution [10] - JPMorgan analyst Arun Jayaram maintained a buy rating on VNOM but lowered the price target to 51,citingfactorslikenaturalgasdemandandpotentialoilpricedeclines[11]Viperspolicyofreturningabout7551, citing factors like natural gas demand and potential oil price declines [11] - Viper's policy of returning about 75% of distributable cash flow to shareholders through dividends and buybacks is highlighted as a unique aspect of the company [13] Group 3: ConocoPhillips (COP) - ConocoPhillips announced a dividend of 78 cents per share for Q1 2025, with a dividend yield of 3.1% [15] - Analyst Jayaram reaffirmed a buy rating on COP but reduced the price target to 115, reflecting concerns over potential oil price declines [15] - The company has executed multiple counter-cyclical transactions since its 2016 strategy reset, enhancing its cost structure and inventory durability [16] - ConocoPhillips is expected to be one of the few companies in JPMorgan's coverage that could increase cash returns in 2025, including $6 billion in stock buybacks [18]