A Notable Wall Street Analyst Just Upgraded This Dividend King With A 3.5%+ Yield

Dividend stocks are making a comeback as investors understand the possibility of a higher-for-longer interest rate scenario and look for safe stocks that can promise a steady income stream during market volatility. According to an analysis by Fidelity Investments, dividend stocks have accounted for about 40% of the market returns since 1930. Dividend stocks also shine during high inflationary periods. An analysis quoted in a report by NCM Investments shows that over the past 10 decades, dividend stocks outperformed the broader index by 3.7% annually when inflation was at its highest levels — during the 40s, 70s and 80s.

When times are tough, income investors flock to dividend-growth stocks with decades of consistent dividend hikes. Dividend kings sit at the top of this category of stocks since these companies have increased payouts for 50+ years without a break.

When Wall Street analysts see the upside to a dividend king, the market pays attention. Irving, Texas-based consumer goods and personal care company Kimberly-Clark Corp KMB is a dividend king with 52 years of dividend increases that recently came on analysts’ radar. On June 13, Bank of America upgraded Kimberly-Clark to Buy from Underperform and increased its price target for the stock to $160 from $115. The stock closed the June 14 session at $139.49, which means BofA’s price target represents a 14% upside potential for KMB. BofA analyst Anna Lizzul cited structural improvements and a long-term growth strategy that the company is executing to drive organic sales. The analyst expects the maker of Huggies diapers and Kleenex tissues to grow its market share in premium-tier products after a challenging 2023. 

In April, Kimberly-Clark posted strong first quarter results and increased its full-year guidance. Adjusted EPS in the quarter came in at $2.01, beating Wall Street consensus estimates by $0.37, while revenue of $5.15 billion surpassed the consensus by $60 million. Kimberly-Clark now expects its adjusted operating profit to grow at a low-teens percentage rate on a constant-currency basis, versus its previous guidance of low-to mid-single-digit growth. Organic sales growth in the year is now expected at mid-single digits, compared with the low-to mid-single-digit growth the company had guided for previously.

Are You Missing Out on Higher Yields?

The current high-interest-rate environment has created an incredible opportunity for income-seeking investors to earn massive yields, but not through dividend stocks… Certain private market real estate investments are giving retail investors the opportunity to capitalize on these high-yield opportunities and Benzinga has identified some of the most attractive options for you to consider. 

For instance, the Ascent Income Fund from EquityMultiple targets stable income from senior commercial real estate debt positions and has a historical distribution yield of 12.1% backed by real assets. With payment priority and flexible liquidity options, the Ascent Income Fund is a cornerstone investment vehicle for income-focused investors. First-time investors with EquityMultiple can now invest in the Ascent Income Fund with a reduced minimum of just $5,000.

Don't miss out on this opportunity to take advantage of high-yield investments while rates are high. Check out Benzinga's favorite high-yield offerings. 

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