Wall Street analysts predict these dividend stocks will boost overall returns.

By investing in a group of dividend payers, investors can increase the value of their portfolios during the upcoming late 2023 rally.

Stocks that pay dividends offer investors both the possibility of price growth and regular income, potentially increasing overall returns.

According to TipRanks, Wall Street's top experts have identified five attractive dividend stocks.

Energy Transfer

This week, the first item on the list is Energy Transfer (ET), a limited partnership that manages a diverse portfolio of energy assets in the U.S., including approximately 125,000 miles of pipelines. Recently, ET completed its acquisition of Crestwood Equity Partners.

In the third quarter, ET distributed $0.3125 per common unit as a quarterly cash payment, which was paid on Nov. 20. The stock's dividend yield is 9%.

RBC Capital analyst Elvira Scotto commented on Energy Transfer's third-quarter results, stating that the company delivered a strong performance with adjusted EBITDA exceeding the consensus estimate by 7%. Additionally, the analyst noted that the 2023 midpoint adjusted EBITDA outlook was increased by $300 million.

Scotto anticipates that the Crestwood acquisition will provide commercial benefits. Moreover, she emphasized that ET plans to maintain a robust balance sheet, targeting a leverage ratio of 4.0-4.5x debt/EBITDA. Additionally, ET intends to continue returning cash to unitholders through increased distributions and potential buybacks.

Scotto stated that with high-growth projects, accretive acquisitions, and an integrated asset footprint across hydrocarbons and basins, ET has the potential to generate substantial cash flow in the near future.

Energy Transfer's stock was upgraded by Scotto, who increased her price target from $18 to $19 and reaffirmed her buy rating. She ranks 54th among over 8,700 analysts on TipRanks, with a track record of profitable ratings 65% of the time, delivering an average return of 18.1%. (See Energy Transfer Insider Trading Activity on TipRanks)

Sunoco LP

Another limited partnership that Scotto is enthusiastic about is SUN, a prominent motor fuel distributor in the U.S.

In the third quarter, Sunoco declared a quarterly cash distribution of $0.8420 per unit, which was paid on November 20. The company's dividend yield is currently 6.3%.

Following the release of Sunoco's quarterly earnings, Scotto increased the price target for SUN stock from $51 to $57, indicating a more optimistic earnings outlook. The analyst maintained a buy rating, citing that the company's volumes and margins exceeded her expectations.

The analyst believes that the company's size, purchasing power, and lower cost structure allow it to surpass the industry's profitability threshold.

SUN's balance sheet remains strong, with a leverage of 3.9x and total liquidity of $1.1BN, giving it financial flexibility to pursue growth opportunities such as acquisitions.

Despite recent trading activity by hedge funds, Scotto maintains a positive outlook on Sunoco due to its strong cash flows and commitment to breakeven margins and cost control.

VICI Properties

Our next dividend stock is (VICI), a real estate investment trust that owns a portfolio of gaming, hospitality, and entertainment properties, including Caesars Palace Las Vegas and MGM Grand.

The company's third quarter cash dividend was $0.415 per share, representing a 6.4% increase, while VICI provides a dividend yield of 5.4%.

Simon Yarmak, a Stifel analyst who ranks 573rd among more than 8,700 analysts tracked by TipRanks, recently reiterated his buy rating on VICI stock and named it one of his top picks in the North American triple-net REITs sector.

VICI has excelled in both gaming and non-gaming sectors, according to Yarmak. He stated that VICI's tenants are still in a robust position.

Yarmak pointed out that VICI has secured advantageous escalators in its leases, which will drive internal growth. These escalators are linked to uncapped CPI growth (50.0% of rent), meaning VICI will benefit from significant lease escalations in the current above-average inflationary environment.

The analyst predicts that lease escalations will result in approximately $71 million of additional rent in 2024, which was not included in the 2023 financials. He anticipates VICI achieving significant year-over-year growth in the triple-net sector in 2024, with nearly 4.5% to 5.0% adjusted funds from operations growth.

On TipRanks, VICI's Options Activity shows that Yarmak's ratings have been successful 54% of the time, with each one delivering an average return of 8%.

Home Depot

Despite a decline in sales in certain big-ticket, discretionary categories, HD exceeded analysts' fiscal third-quarter estimates. However, the company narrowed its full-year outlook due to macro pressures.

The company declared a cash dividend of $2.09 per share for the third quarter, payable on Dec. 14. HD's dividend yield is currently 2.6%.

After the release of the fiscal third-quarter results, JPMorgan analyst Christopher Horvers adjusted his price target for HD stock from $332 to $318 while keeping a buy rating, indicating that Home Depot is performing well despite challenging circumstances.

Management's tone was less optimistic in the second quarter compared to the first, but not worse. The home improvement category is projected to remain under pressure in the first half of 2024, but comparable sales are expected to recover in the second half.

Horvers stated that HD is one of the best long-term stories in retail due to its company-specific sales and margin initiatives, the industry's resistance to the duopoly and Amazon, and the significant financial and operating leverage that amplifies EPS growth in better sales environments.

On TipRanks, Horvers is ranked No. 520 among over 8,700 analysts. His ratings have been profitable 61% of the time, with each delivering an average return of 8%. (See Home Depot's Technical Analysis on TipRanks)

Walmart

Walmart (WMT) is a big-box retailer that has increased its annual dividend per share by 2% to $2.28. This marks the 50th consecutive year of dividend hikes for the company, making it a dividend king. The stock offers a dividend yield of 1.5%.

Despite exceeding analysts' fiscal third-quarter earnings and sales expectations, the retailer warned investors about weak consumer spending.

Guggenheim analyst Robert Drbul maintained a buy rating on Walmart's stock with a price target of $180. The analyst observed strong traffic growth in both physical stores and digital channels. He raised his full-year sales estimates based on Q3's positive performance but kept his fiscal 2024 and 2025 adjusted earnings per share estimates unchanged due to increased expense pressures.

Drbul stated that Walmart remains well-positioned in an uncertain macro environment due to its price and value proposition, as well as its increased convenience and assortment.

The analyst stated that the stock's 1.5% dividend yield and its trading price of 22.3 times its fiscal 2025 EPS estimate of $7 make WMT stock appealing to income, value, and growth investors.

On TipRanks, Drbul ranks 652nd among over 8,700 analysts. His ratings have been successful 59% of the time, with each delivering an average return of 5.9%. (Check out Walmart's financial statements on TipRanks.)