Analysts Back 3 Dividend Energy Stocks, Lifting Valero Target to $286
Updated
Updated · CNBC · Jul 5
Analysts Back 3 Dividend Energy Stocks, Lifting Valero Target to $286
2 articles · Updated · CNBC · Jul 5
Summary
Wall Street analysts highlighted Permian Resources, Valero Energy and Ovintiv as dividend-paying energy picks, with Valero drawing the latest target increase to $286 ahead of July 30 earnings.
Goldman Sachs raised Valero's 2026 EPS estimate to $31.42 from $29.42 and kept a buy rating, citing stronger refining conditions, Gulf Coast scale and low-cost operations despite the stock's year-to-date rally.
Evercore started Permian Resources at buy with a $25 target, arguing its 16-cent quarterly dividend, low-breakeven shale inventory and acquisition-driven Permian strategy position it to benefit from stronger U.S. shale demand after the Iran conflict.
RBC reiterated a buy on Ovintiv with a $70 target after management meetings, pointing to its 30-cent quarterly dividend, two-basin focus and stronger balance sheet after a $3 billion Anadarko asset sale.
The calls underscore how analysts are steering income investors toward energy names that pair modest yields—about 2% to 3.5%—with expected cash-flow growth and shareholder returns.