Major U.S. indices had a good run in 2024, thanks to the buzz around artificial intelligence and interest rate cuts. However, macro uncertainty could weigh on investor sentiment in 2025. In this scenario, investors looking for regular income can consider adding dividend stocks to their portfolios.
Top Wall Street analysts can help investors pick attractive dividend stocks that offer consistent payments, supported by strong fundamentals. Here are three dividend-paying stocks, highlighted by Wall Street’s top pros as tracked by TipRanks, a platform that ranks analysts based on their past performance.
Ares Capital (ARCC) offers a quarterly dividend of 48 cents per share, yielding 8.7%. RBC Capital analyst Kenneth Lee reiterated a buy rating on ARCC with a price target of $23, calling the stock RBC’s favorite BDC name for 2025. Lee highlighted ARCC’s leading position in the BDC space, flexible capital offerings, and impressive risk management history.
ConocoPhillips (COP) delivered better-than-expected third-quarter earnings and raised its full-year output guidance. The company also raised its quarterly dividend by 34% to 78 cents per share, yielding 3%. Mizuho analyst Nitin Kumar upgraded COP stock to buy from hold and raised the price target to $134, citing the company’s long-duration inventory, fortress balance sheet, and peer-leading cash returns.
Darden Restaurants (DRI) owns several popular brands like Olive Garden, LongHorn Steakhouse, Yard House, and Cheddar’s Scratch Kitchen. The company recently announced its results for the second quarter of fiscal 2025 and raised its annual sales guidance. DRI offers a quarterly dividend of $1.40 per share, yielding about 3%. BTIG analyst Peter Saleh reiterated a buy rating on DRI stock and raised the price target to $205, citing the company’s multiple levers to achieve full-year guidance and strong performance from its LongHorn Steakhouse and Olive Garden chains.