Dividend-paying stocks could be on the verge of a tailwind — and investors would do well to snap up names that provide solid income, according to Bank of America. "We believe that we are now in a total return world in which the contribution of dividends to total market returns could be significantly higher than it was in the last decade," wrote a team led by equity and quant strategist Savita Subramanian in a July 16 report.
mountain Coterra Energy's YTD performance Utilities giant Southern Company was on Bank of America's list of dividend payers as well. Last year, the company completed the first nuclear plant in the U.S. in more than three decades. Earlier this week, Guggenheim analyst Shahriar Pourreza raised his price target on Southern to $87 from $85. His team, which rates the stock a buy, also raised their 2024 to 2028 annual earnings per share estimates.
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