Top Income Stocks to Buy for March 24th

In the ever-changing landscape of the stock market, where volatility and uncertainty reign supreme, dividend-paying stocks stand out as a beacon of stability. As we navigate through March 24, 2025, with economic uncertainty and tariff wars fueling market turbulence, investors are increasingly turning to dividend stocks to secure a reliable income stream. Let's dive into the top income stocks that analysts are recommending for this month, and explore why they stand out in the current economic climate.

The Appeal of Dividend Stocks

Dividend-paying stocks offer a unique advantage in volatile markets. They provide a steady income stream, which can be particularly valuable when market fluctuations make capital gains unpredictable. This stability is why dividend stocks are often seen as a safe haven during economic downturns. For instance, Vitesse Energy (VTS) and Viper Energy (VNOM) are two companies that have recently declared substantial dividends, offering investors a reliable source of income.

Vitesse Energy: A Unique Energy Play

Vitesse Energy (VTS) is a standout in the energy sector, known for its unique business model of owning financial interests in oil and gas wells. Recently, Vitesse completed the acquisition of Lucero Energy, which is expected to increase dividends and provide additional liquidity. The company declared a quarterly dividend of $0.5625 per share, payable on March 31, marking a 7% rise from the prior quarter. With a dividend yield of 9.3%, VTS offers a compelling income opportunity.

Jefferies analyst Lloyd Byrne reiterated a buy rating on VTS stock with a price target of $33. Byrne noted that the Q4 EBITDA modestly lagged the consensus estimate due to marginally lower-than-expected production and one-time costs related to the Lucero acquisition. However, he highlighted the planned increase in Vitesse's dividend following the completion of the Lucero acquisition, which is consistent with VTS' strategy of raising its payout as expected operating cash flow grows. Byrne added that management aims to keep the dividend coverage ratio at about 1.0x, ensuring sustainability.

Viper Energy: A Reliable Dividend Player

Viper Energy (VNOM), a subsidiary of Diamondback Energy (FANG), is another top pick for income investors. The company announced a base cash dividend of 30 cents per share and a variable cash dividend of 35 cents per share for the fourth quarter of 2024. The total Q4 2024 capital return of 65 cents per share represents 75% of the cash available for distribution.

JPMorgan analyst Arun Jayaram reiterated a buy rating on VNOM stock but lowered the price target to $51 from $56. Jayaram highlighted Viper's policy of returning about 75% of all distributable cash flow to shareholders through base and variable dividends and share buybacks. He noted that Viper's relationship with Diamondback Energy gives it visibility and reduces a key uncertainty that is usually associated with companies in the minerals space.

ConocoPhillips: A Solid Energy Bet

ConocoPhillips (COP) is another energy stock that analysts are bullish on. JPMorgan analyst Arun Jayaram reaffirmed a buy rating on the stock but lowered the price target to $115 from $127. Jayaram noted that ConocoPhillips' strong fundamentals and consistent dividend payments make it a reliable choice for investors looking for stable income.

Dividend Aristocrats: The Gold Standard

For investors seeking long-term stability, dividend aristocrats are a top choice. These are S&P 500 stocks that have increased their dividend every year for at least 25 years. The top 7 dividend aristocrats list includes companies like Franklin Resources, Inc (BEN) with a dividend yield of 6.37%, and Realty Income Corp (O) with a dividend yield of 5.70%. These companies have a proven track record of increasing their dividends, making them a safe bet for investors.



High-Dividend ETFs: Diversification Made Easy

For those who prefer a diversified approach, high-dividend ETFs are an excellent option. These ETFs include dozens, if not hundreds, of dividend stocks, providing instant diversification. The list of seven large-cap U.S. dividend ETFs includes the Invesco KBW Premium Yield Equity REIT ETF (KBWY) with an 8.86% dividend yield, and the Invesco S&P SmallCap High Dividend Low Volatility ETF (XSHD) with a 7.21% dividend yield. These ETFs offer a simple solution to getting exposure to a specific investing niche, making it easy to add a large variety of investments to your portfolio all at once.

Conclusion

In conclusion, dividend-paying stocks offer a reliable source of income in the current economic climate. With their stability in volatile markets, consistent payouts, growth potential, and high dividend yields, these stocks are an attractive option for investors seeking stable income. Whether you choose individual stocks like Vitesse Energy, Viper Energy, and ConocoPhillips, or opt for a diversified approach with high-dividend ETFs, there are plenty of opportunities to secure a steady income stream in March 2025.