Top Wall Street analysts suggest these dividend stocks for stable income

CNBC

8 hours ago

Trade negotiations and heightened geopolitical conflict are weighing on market sentiment, but investors seeking stable income can solidify their portfolios through the addition of dividend stocks.
Tracking the recommendations of top Wall Street analysts could inform investors as they hunt for attractive dividend stocks, given that the investment thesis of these experts is backed by an in-depth analysis of a company's 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.
Telecom giant Verizon Communications (VZ) is this week's first dividend pick. The company recently declared a quarterly dividend of $0.6775 per share, payable on Aug. 1. VZ stock offers a dividend yield of 6.3%.
Following a meeting with Verizon management, Citi analyst Michael Rollins noted that the company is upbeat about bolstering its leadership in broadband and converged services over the next few years. The company aims to double its converged wireless subscriptions (customers having both wireless and broadband subscriptions) from the current level of 16% to 17% of its customer base over the next three years.
Given the ongoing promotional backdrop in the wireless space, Rollins noted that competitive data points are still mixed. Nonetheless, Verizon is highly focused on customer retention and improving churn to rebound to its BAU (business as usual) levels in the second half of this year, partly supported by its new upgrade program.
Rollins noted that Verizon is optimistic about improvement in its performance in the second half of the year and continues to expect to add more postpaid phone subscriptions in 2025 compared to the previous year. The analyst sees the possibility of Q3 results, and not the Q2 performance, acting as a catalyst for Verizon stock, if the loss of postpaid phone customers starts to recede. Rollins continues to expect Verizon to lose 75,000 postpaid phone customers in the second quarter.
Overall, Rollins is bullish on VZ's long-term growth potential, noting the "under-appreciated value for its financial prospects." The analyst reaffirmed a buy rating on Verizon stock with a price target of $48. Interestingly, TipRanks' AI analyst has a buy recommendation on VZ stock, with an expectation of a 14.3% upside.
Rollins ranks No. 249 among more than 9,600 analysts tracked by TipRanks. His ratings have been profitable 69% of the time, delivering an average return of 12.7%. See Verizon Insider Trading Activity on TipRanks.
Let's move to the next dividend stock: Restaurant Brands International (QSR). This is a quick-service restaurant chain that owns iconic brands like Tim Hortons and Burger King. QSR offers a quarterly dividend of 62 cents per share. At an annualized dividend of $2.48 per share, QSR's dividend yield stands at about 3.7%.
In May, Restaurant Brands said that it still expects to achieve its long-term algorithm, which projects 8% organic adjusted operating income growth on average between 2024 and 2028.
Evercore analyst David Palmer said that the company can deliver on-algorithm 8% profit growth in both 2025 and 2026, despite his estimates indicating below-algorithm systemwide sales growth of 5% and 6% in 2025 and 2026, respectively. He explained that despite lower sales, the company could achieve its profitability target in 2025 due to its cost management and lower stock-based compensation.
Palmer added that with QSR stock trading at significant discount to Yum Brands and McDonald's, he sees the company's earnings delivery as "step one to upside." He also highlighted other catalysts for QSR stock, including ongoing above-consensus International same-store sales growth, positive same-store sales growth for Burger King U.S. and Tim Hortons Canada, and a resale of the China business, which is expected to drive improved income in 2026.
Overall, Palmer is bullish on QSR stock and reiterated a buy rating with a price target of $86, which reflects a P/E (price-to-earnings) multiple of 23x and 22x based on 2025 and 2026 earnings estimates, respectively. The analyst contends that QSR commands a valuation multiple closer to rivals that are currently trading at 24x or higher.
Palmer ranks No. 632 among more than 9,600 analysts tracked by TipRanks. His ratings have been successful 63% of the time, delivering an average return of 7.1%. See Restaurant Brands International Technical Analysis on TipRanks.
Finally let's look at EOG Resources (EOG), a crude oil and natural gas exploration and production company with proved reserves in the U.S. and Trinidad. The company recently announced a deal to acquire Encino Acquisition Partners for $5.6 billion.
The company highlighted that this deal's accretion to its free cash flow supports its commitment to shareholder returns. Notably, EOG announced a 5% increase in its dividend to $1.02 per share, payable on Oct. 31. EOG stock offers a dividend yield of 3.1%.
Reacting to the Encino acquisition, RBC Capital analyst Scott Hanold said, "Encino's assets makes sense from a strategic and value adding perspective, in our view." The analyst reiterated a buy rating on EOG stock with a price target of $145. TipRanks' AI analyst has a buy rating on EOG Resources with a price target of $132.
Hanold highlighted that the deal increases EOG's Utica position to a combined acreage of 1.1 million acres, producing 275 Mboe/d (million barrels of oil equivalent per day). The analyst expects the combined acreage in Utica to surpass 300 Mboe/d by early 2026, which is second only to EOG's Permian position. Hanold expects scaled development to begin in 2026.
The analyst added that following the acquisition, EOG's net debt to book capital stands at 0.3x, with the company still boasting a peer-leading leverage ratio and balance sheet. Hanold pointed out management's commentary about shareholder returns remaining similar to those of recent quarters at 100% of free cash flow, with buybacks continuing to be a priority. He also noted the 5% rise in EOG's fixed dividend.
Hanold ranks No. 15 among more than 9,600 analysts tracked by TipRanks. His ratings have been profitable 69% of the time, delivering an average return of 29.6%. See EOG Resources Stock Buybacks on TipRanks.