The Trump administration’s tariff policy rattled stocks last week, and uncertainty weighed on the major averages.
Amid the ongoing volatility, investors seeking stable returns can consider adding some dividend stocks to their portfolios. The recommendations of top Wall Street analysts could help inform investors as they pick stocks that have a steady record of paying dividends and can enhance overall returns.
Here are three dividend-paying stocks, highlighted by Wall Street’s top pros on TipRanks, a platform that ranks analysts based on their past performance.
Coterra Energy
This week’s first dividend pick is Coterra Energy (CTRA), an exploration and production company with operations focused in the Permian Basin, Marcellus Shale and Anadarko Basin. The company recently delivered upbeat fourth-quarter earnings. Dividends and share repurchases totaled $1.086 billion in 2024, representing 89% of the full-year free cash flow.
Further, the company hiked its dividend by 5% to 22 cents per share for the fourth quarter of 2024. CTRA stock offers a dividend yield of 3.3%.
Following the Q4 2024 print, Mizuho analyst Nitin Kumar reiterated a buy rating with a price target of $40, calling CTRA stock a “top pick.” The analyst stated that the company yet again posted better-than-expected earnings per share and cash flow per share (CFPS), thanks to higher oil production and solid volumes.
Kumar noted that Coterra reaffirmed its initial outlook for 2025 that was issued in November, but changed the spending mix by slightly lowering Permian Basin expenditure by $70 million and boosting Marcellus spending by $50 million. The analyst explained that this modest change in the capex spending mix is in line with the company’s outlook for commodity prices and reflects CTRA’s flexibility in capital allocation.
The analyst also contends that “CTRA’s exposure to natural gas prices is often underappreciated in our view, especially when the outlook for the commodity is strengthening.”
Kumar ranks No. 347 among more than 9,400 analysts tracked by TipRanks. His ratings have been profitable 58% of the time, delivering an average return of 10.8%. See Coterra Energy Stock Buybacks on TipRanks.
Diamondback Energy
Let’s look at another dividend-paying stock, Diamondback Energy (FANG) – an independent oil and natural gas company with a focus on the Permian Basin. Last year, the company strengthened its business with the acquisition of Endeavor Energy Resources. On Feb. 24, Diamondback announced market-beating fourth-quarter results.
The company announced an 11% increase in its annual base dividend to $4.00 per share. It declared a Q4 2024 base cash dividend of $1.00 per share, payable on March 13.
In reaction to the impressive results, Siebert Williams Shank analyst Gabriele Sorbara reaffirmed a buy rating on FANG stock with a price target of $230. The analyst noted that the Q4 results reflected the company’s strong operational execution, with better-than-anticipated production and lower spending. Also, Q4 free cash flow (FCF) surpassed Sorbara’s estimate by 9.8% and the Street’s consensus expectation by 13%.
Sorbara also mentioned the company’s better-than-feared outlook for 2025, with the possibility for upside revision to the FCF outlook of over $5.9 billion at $70/bbl WTI price level.
Overall, Sorbara is optimistic about FANG stock and believes that it is well-positioned “with a strong sustainable FCF yield supported by its best-in-class Permian Basin assets, which are strengthened further with the recently announced Double Eagle IV acquisition.”
Sorbara ranks No. 217 among more than 9,400 analysts tracked by TipRanks. His ratings have been successful 51% of the time, delivering an average return of 18.4%. See Diamondback Energy Insider Trading Activity on TipRanks.
Walmart
Big-box retailer and dividend king Walmart (WMT) reported top and bottom line beats in the fiscal fourth quarter. However, the company cautioned investors about a slowdown in profit growth amid subdued consumer spending and forex headwinds.
Interestingly, Walmart announced a 13% increase in its annual dividend to 94 cents per share (quarterly dividend of $0.235 per share). This marks the 52nd consecutive year of dividend increases for the company.
Following the results, Evercore analyst Greg Melich reiterated a buy rating on Walmart stock but lowered the price target to $107 from $110 to reflect the lower EPS expectations. Specifically, the analyst slightly reduced his calendar year 2025 and 2026 EPS estimates by 10 cents and 5 cents, respectively, due to forex pressures, the impact of the Vizio acquisition and a higher effective tax rate compared to the previous year.
Despite the near-term headwinds, Melich remains bullish on WMT stock and highlighted multiple strengths, including the retailer’s value proposition, robust merchandising capabilities and improved customer experience.
The analyst thinks that Walmart is well-positioned to continue to gain market share and expand its earnings before interest and tax margin, backed by ad revenues, automation and operating leverage.
Melich believes that the post-earnings pullback in WMT stock presents a “second chance for those wanting quality growth, in our view, with the flywheel set in motion as a result of value leadership and innovation.”
Melich ranks No. 537 among more than 9,400 analysts tracked by TipRanks. His ratings have been profitable 68% of the time, delivering an average return of 12.8%. See Walmart Ownership Structure on TipRanks.