Major US indices have done well in 2024, thanks to hype around artificial intelligence and interest rate cuts. However, macro uncertainty may impact investor sentiment in 2025. In this scenario, investors looking for regular income could consider adding dividend stocks to their portfolios.
Top Wall Street analysts can help investors select attractive dividend stocks that offer consistent payouts, backed by strong fundamentals.
Here are three Stocks that pay dividendsmost notable Top professionals on Wall Street It is also tracked by TipRanks, a platform that ranks analysts based on their past performance.
Ares Capital
We start with Ares Capital (ARCC), a specialized financing provider that provides 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 (BDC), the RBC Capital analyst said Kenneth Lee He reiterated a Buy rating on ARCC with a $23 price target, calling RBC the stock's preferred BDC for 2025.
“ARCC has a leading position in the BDC space, with the benefits of scale, a strong origination engine in the Ares direct lending platform (covering across all MM segments), and nearly 20 years of experience and strong performance in this space,” Lee said.
The analyst highlighted ARCC's ability to provide flexible capital through diverse financing solutions to clients, which sets it apart from its peers. Lee also pointed to other strengths, including the company's impressive history of managing risks throughout the cycle, access to Ares Credit Group's resources, and advantages of scale, as it is the largest publicly traded BDC by assets.
Lee also emphasized ARCC's dividend, which is supported by the company's basic earnings per share and potential net realized gains.
Lee is ranked No. 23 out of more than 9,200 analysts tracked by TipRanks. Its reviews were profitable 71% of the time, generating an average return of 18.1%. See Ares Capital ownership structure on TipRanks.
ConocoPhillips
We move on ConocoPhillips (policeman), an oil and gas exploration and production company. In October, the company posted better-than-expected third-quarter earnings and raised full-year production guidance to reflect the impact of operational efficiency.
Furthermore, ConocoPhillips raised its quarterly dividend by 34% to 78 cents per share and enhanced its existing stock buyback authorization by up to $20 billion. Based on an annual dividend per share of $3.12, COP stock offers a dividend yield of 3%.
In a research note on the outlook for US oil and gas, analyst Mizuho said Nitin Kumar It upgraded ConocoPhillips shares to buy from hold and raised its price target to $134 from $132. “COP offers an enviable combination of long-term inventory, a strong balance sheet and leading cash yields,” Kumar said.
The analyst noted that the decline in COP shares since the announcement Oil acquisition marathon It indicates that the moderate stock dilution resulting from the deal has already been priced into the stock. In addition, Kumar noted the company's confidence in achieving significant deal synergies higher than expected. Specifically, ConocoPhillips expects to generate about $1 billion in annual synergies, double its initial target of $500 million.
Kumar also confirmed that COP expects its 2025 capital expenditures to be less than $13 billion, which could translate into additional free cash flow. The analyst believes that with its growing LNG presence and strong commercialization business, the company is well positioned to benefit from growing global LNG demand and international pricing.
Kumar is ranked No. 336 out of more than 9,200 analysts tracked by TipRanks. Its reviews were profitable 58% of the time, generating an average return of 12.1%. See Insider trading activity of ConocoPhillips on TipRanks.
Darden Restaurants
Finally, let's look Darden Restaurants (Direct reduction), a restaurant company that owns several popular brands such as Olive Garden, LongHorn Steakhouse, Yard House, and Cheddar's Scratch Kitchen. The company recently reported its second-quarter fiscal 2025 results and raised its annual sales guidance.
Along with Q2FY25 results, the company It declared a quarterly dividend of $1.40 per sharedue February 3. With a quarterly dividend of $1.40 per share (annual dividend of $5.60), DRI offers a yield of about 3%.
After the results, BTIG analyst Peter Saleh He reiterated a buy rating on DRI shares and raised his price target to $205 from $195, saying “management has multiple levers to achieve full-year guidance.” He believes that although the results have been encouraging, the impact of hurricanes and a changing Thanksgiving calendar has overshadowed some of the positive sales trends.
Highlighting the strong performance of the LongHorn Steakhouse and Olive Garden chains, the analyst noted that the rise in visits from low- and middle-income consumers reflects a marked shift from trends observed in recent quarters.
Among other positives, Saleh also pointed to a faster-than-expected rollout of Uber Eats delivery and a lower value gap compared to quick-service restaurants, thanks to Darden's capped pricing. The analyst expects all of these positive factors to drive strong performance in the second half of fiscal 2025. Overall, Saleh views Darden as an industry-leading restaurant operator delivering consistent earnings growth at a profitable valuation.
Saleh is ranked No. 366 out of more than 9,200 analysts tracked by TipRanks. Its reviews were profitable 62% of the time, generating an average return of 11.8%. See Darden Restaurants Hedge Fund Activity on TipRanks.
