Top Wall Street analysts pick these dividend stocks for 2025

The main US indices have 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 may consider adding dividend stocks to their portfolio.

The best Wall Street analysts can help investors choose attractive dividend stocks that offer consistent payouts, backed by strong fundamentals.

Here are three dividend paying stockshighlighted by The best pros of Wall Street as tracked by TipRanks, a platform that ranks analysts based on their past performance.

Ares Capital

Let’s start with Ares Capital (ARC), a specialist finance provider offering financing solutions to private middle market companies. With a quarterly dividend of 48 cents per share, ARCC stock offers a yield of 8.7%.

In a research note on the 2025 outlook for business development companies (BDCs), RBC Capital analyst Kenneth Lee reiterated a buy rating on ARCC with a target price of $23, calling it RBC’s preferred BDC name for 2025.

“ARCC has a leading position in the BDC space, with benefits of scale, strong origination engine in the Ares direct lending platform (coverage in all MM segments), and ~20 years of experience and solid performance in the space Lee said.

The analyst highlighted ARCC’s ability to offer flexible capital in various financing solutions for clients as differentiated from its peers. Lee also noted other strengths, including the company’s impressive track record in managing risks through the cycle, access to the resources of Ares Credit Group, and the advantages of scale, as it is the most large publicly traded BDC for assets.

Lee also emphasized ARCC’s dividends, which are supported by the company’s earnings per share and potential realized net earnings.

Lee is No. 23 among more than 9,200 analysts tracked by TipRanks. Their assessments were profitable 71% of the time, providing an average return of 18.1%. To see Ares Capital’s ownership structure on TipRanks.

ConocoPhillips

We move to ConocoPhillips (COP), an oil and gas exploration and production company. In October, the company delivered better-than-expected third-quarter earnings and raised its full-year production guidance to reflect the impact of operating efficiencies.

In addition, ConocoPhillips increased its quarterly dividend by 34% to 78 cents per share and increased the existing share buyback authorization up to $20 billion. The annual dividend yield per share of COP 3.12 is 3.12%.

In a research note on the US oil and gas outlook, analyst Mizuho Nitin Kumar upgraded ConocoPhillips shares to buy from hold and raised the target price to $134 from $132. “COP offers an enviable combination of long-lived inventory, a strong balance sheet and leading cash returns,” he said. Kumar.

The analyst noted that the pullback in COP shares from the announcement of the Acquisition of Marathon oil indicates that the moderate dilution of inventory resulting from the deal has already been priced into the stock. Additionally, Kumar noted the company’s confidence in achieving deal synergies significantly higher than expected. Specifically, ConocoPhillips expects to generate about $1 billion in annual synergies, which is twice its initial goal of $500 million.

Kumar also emphasized that COP expects its 2025 capital expenditure to be below $13 billion, which could translate into additional free cash flow. The analyst believes that with its growing presence of LNG and strong commercial marketing activity, the company is well positioned to gain from the growing global demand for LNG and international prices.

Kumar is number 336 among more than 9,200 analysts tracked by TipRanks. Their assessments were profitable 58% of the time, providing an average return of 12.1%. To see ConocoPhillips Insider Trading Activity on TipRanks.

Darden Restaurants

Finally, let’s look Darden Restaurants (DRI), a restaurant company that owns many popular brands such as 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.

Along with its Q2 FY25 results, the company announced a quarterly dividend of $1.40 per sharepayable on February 3rd. For the quarterly dividend payment of $1.40 per share ($5.60 annual dividend), DRI offers a yield of about 3%.

After the results, the analyst BTIG Peter Saleh reiterated a buy rating on DRI stock and raised the price target to $205 from $195, saying “management has several levers to achieve full-year guidance.” He thinks that, while the results were encouraging, the impact of the hurricanes and the change in the calendar of Thanksgiving overturned some favorable sales trends.

Highlighting the strong performance of the LongHorn Steakhouse and Olive Garden chains, the analyst noted that the increase in visits by low and middle income consumers reflects a notable turnaround from the trends observed in recent quarters.

Among other positives, Saleh also noted the faster-than-expected launch of Uber Eats delivery and the narrowing of the value gap compared to quick-service restaurants, thanks to Darden’s restricted prices. The analyst expects all these positive factors to drive robust performance in the second half of fiscal year 2025. Overall, Saleh sees Darden as an industry restaurant operator that delivers consistent earnings growth to a lucrative assessment.

Saleh is ranked number 366 among more than 9,200 analysts tracked by TipRanks. Their assessments were profitable 62% of the time, providing an average return of 11.8%. To see Darden Restaurants Hedge Funds Activities on TipRanks.