Top Wall Street analysts pick these dividend stocks for enhanced returns

Investors looking to enhance their portfolio returns can opt for a combination of growth and dividend stocks.

Choosing the right dividend stock by analyzing multiple factors can be complex for investors. However, recommendations from analysts can help inform investors' research and guide them toward lucrative dividend stocks from companies with strong fundamentals.

Here are three attractive dividend stocks, according to Wall Street's top experts on TipRanks, a platform that ranks analysts based on their past performance.

This week's first dividend pick is beverage giant Coca-Cola (KO). Earlier this month, the company reported fourth-quarter revenue that surpassed expectations and earnings that were in line with analysts' estimates. Higher prices helped Coca-Cola offset the weakness in North American volumes.

Coca-Cola paid $8 billion in dividends in 2023 and made net share repurchases worth $1.7 billion. The company, recently announced a nearly 5.4% increase in its quarterly dividend per share to $0.485. This increase marked the 62nd consecutive year of dividend hikes for the company. With an annual dividend of $1.94 per share, KO stock offers a yield of more than 3%.

Following the Q4 2023 results, RBC Capital analyst Nik Modi reiterated a buy rating on Coca-Cola stock with a price target of $65. The analyst noted that KO's organic revenue growth was fueled by the impressive rise in pricing and resilient volumes, with the company exceeding the organic growth expectations for five out of six segments.

While higher marketing investments and a strong dollar weighed on Coca-Cola's earnings, the analyst expects the company's fundamentals to remain robust this year.

"We believe the company's latest restructuring and organizational