Top Wall Street analysts recommend these dividend stocks for steady income

CNBC

3 days ago

The Trump administration's fluctuating trade policies add uncertainty into the economy, but investors seeking stable income can look at dividend stocks to bolster their portfolios.
To this end, the recommendations of top Wall Street analysts can help investors pick the dividend stocks that support consistent payments.
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
The first dividend-paying company in this week's list is energy giant Chevron (CVX). The company recently delivered market-beating earnings for the second quarter. However, earnings declined compared to the prior-year quarter due to lower oil prices. Meanwhile, Chevron expects the recently completed Hess deal to begin contributing to its earnings in the fourth quarter of this year.
In Q2, Chevron returned $5.5 billion of cash to shareholders via share repurchases of $2.6 billion and dividends of $2.9 billion. CVX stock offers a dividend yield of 4.4%.
Following the Q2 print, Morgan Stanley analyst Devin McDermott resumed coverage of Chevron stock with a buy rating and a price target of $174. TipRanks' AI Analyst also has an "outperform" rating on CVX stock with a price target of $171.
McDermott highlighted Chevron's Q2 earnings beat. The analyst said that the recent closing of the Hess acquisition removes a major overhang and strengthens CVX's business. The Hess deal is expected to enhance Chevron's growth and portfolio duration.
Additionally, the 5-star analyst noted that while Chevron has lagged peer Exxon Mobil (XOM) in recent years, the Hess deal, along with the Tengizchevroil (TCO) project and cost-cutting measures, is expected to close the gap on growth, at least over the next 2 to 3 years. "With a ~$12.5B cash flow inflection underway, CVX's 2026 FCF [free cash flow] yield of 8% compares to XOM at 6% and COP at 7%," said McDermott.
McDermott ranks No. 406 among more than 9,900 analysts tracked by TipRanks. His ratings have been profitable 59% of the time, delivering an average return of 11.6%. See Chevron Statistics on TipRanks.
We move to Rithm Capital (RITM), an asset manager with significant experience in managing credit and real estate assets. The company recently announced better-than-expected second-quarter results. Rithm Capital paid a dividend of 25 cents per share for the second quarter of 2025. At an annualized dividend of $1 per share, RITM stock offers a dividend yield of 8.2%.
Reacting to the Q2 performance, RBC Capital analyst Kenneth Lee raised his price forecast on Rithm Capital stock to $14 from $13 while reaffirming a buy rating. In comparison, TipRanks' AI Analyst has a "neutral" rating on RITM stock.
The top-rated analyst noted that Rithm Capital reported Q2 2025 earnings available for distribution (EAD) of 54 cents per share, surpassing RBC and the Street's consensus estimate of 52 cents. Given the strong results, Lee raised his EAD per share estimate for 2025 to $2.24 from $2.21. He also raised his 2026 EAD per share estimate to $2.30 from $2.27.
"We favor RITM as it pivots towards being an alternative investment manager, with a fee-based, capital-light business model, over time," said Lee.
Based on management's comments, Lee noted that Rithm might not spin off or list its Newrez business and would rather focus on growing the earnings stream within the business. He views RITM's renewed focus on growth and ROE (return on equity) enhancement positively. Lee also highlighted that Rithm Capital is seeing notable cost benefits through the implementation of initiatives related to artificial intelligence.
Lee ranks No. 22 among more than 9,900 analysts tracked by TipRanks. His ratings have been successful 74% of the time, delivering an average return of 18.7%. See Rithm Capital Hedge Fund Activity on TipRanks.
Finally, let's look at telecom giant AT&T (T). The company delivered better-than-anticipated second-quarter earnings, topping market expectations for wireless postpaid subscriber additions. AT&T offers a quarterly dividend of $0.2775 per share. At an annualized dividend of $1.11 per share, AT&T's dividend yield stands at about 4%.
In reaction to the Q2 results, RBC Capital analyst Jonathan Atkin reiterated a buy rating on AT&T stock with a price target of $31. In comparison, TipRanks' AI Analyst has a "neutral" rating with a price target of $30.
Atkin explained that AT&T's Q2 revenue beat was driven by higher-than-expected Wireless equipment revenues. Furthermore, adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) exceeded expectations, thanks to the strength in the company's Wireline business, which offset softer Wireless profits.
The analyst noted that AT&T's revised 2025 guidance reflects cash tax benefits, the improved trajectory of the Wireline business, and a more competitive Wireless backdrop. Atkin added that the company's free cash flow outlook was revised to the low-to-mid $16 billion range compared to the previous guidance of more than $16 billion, which implies that most of the cash tax benefit will be reinvested into fiber capex and pension funding.
The 5-star analyst stated that while estimates for revenue, EBITDA, and EPS for 2026 and 2027 remain unchanged, AT&T's free cash flow outlook was increased by $1 billion for both years to reflect cash tax benefits, net of incremental investments. Atkin stated that he supports management's decision to prioritize capital investments that are expected to drive long-term growth, and "highlight the company's traction in switching off legacy networks."
Atkin ranks No. 234 among more than 9,900 analysts tracked by TipRanks. His ratings have been successful 67% of the time, delivering an average return of 11.3%. See AT&T Insider Trading Activity on TipRanks.