Top Wall Street analysts are bullish on these 3 dividend stocks

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Top Wall Street analysts are bullish on these 3 dividend stocks

2025-11-16 12:25:57

Buffalo Gonchar | SOPA Photos | Rocket Lite | Getty Images

The US stock market remains volatile due to concerns about technology and artificial intelligence stock valuations and an uncertain macroeconomic backdrop. Given this scenario, investors looking for passive income can add some dividend stocks to their portfolios.

At the same time, investors may find it difficult to choose the right stock from a wide universe of dividend-paying companies. In this regard, recommendations from top Wall Street analysts can help investors choose attractive dividend stocks with strong fundamentals. These experts assign their ratings after an in-depth analysis of the company’s financial condition and growth potential.

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.

Diamondback energy

First on this week’s list is… Diamondback energy (Fang), an independent energy company focused on onshore oil and natural gas reserves in the Permian Basin in West Texas. The company recently reported better-than-expected results for the third quarter. Diamondback returned $892 million of capital to shareholders (50% of adjusted free cash flow) through stock repurchases and dividends in the third quarter. It declared a basic cash dividend of $1.00 per share for the period, payable on November 20. With an annual dividend of $4 per share, FANG offers a yield of 2.8%.

In response to the third-quarter reading, RBC Capital analyst Scott Hannold reiterated a Buy rating on Diamondback stock at Price forecast $173. Interestingly, the TipRanks AI analyst is also bullish on FANG stock with an “Outperform” rating and a price target of $156.

Hannold continues to view Diamondback as a long-term core holding in the energy space, given that it boasts one of the highest underlying inventory durations in the Permian Basin and breakeven lows of $37 to $38 per barrel (WTI, unhedged, including capitalized costs).

“FANG remains among the most resilient exploration and production companies, with cutting-edge operational, capital and production performance,” Hanold said.

The 5-star analyst expects Diamondback to benefit from gas-fired renewable energy prospects in the Permian Basin, supported by its strong footprint and exposure to natural gas. Hanold noted that FANG is part of the Competitive Power Ventures project, where the company has agreed to supply 50 million cubic feet per day for a 1,350 MW combined cycle gas turbine. He added that management is optimistic about securing more power/data center deals.

Hanold is ranked No. 69 out of more than 10,000 analysts tracked by TipRanks. Its reviews were profitable 64% of the time, generating an average return of 26.2%.

Permian resources

Hanold is also bullish on another energy company that pays a dividend, Permian resources (Public relations). The independent oil and gas company reported upbeat third-quarter earnings, citing its dominance in the Delaware Basin. Permian declared a basic dividend of 15 cents per share for the fourth quarter, payable on December 31. With an annual dividend of 60 cents per share, PR stock offers a yield of 4.5%.

Hannold was impressed with the results, and reaffirmed his Buy rating on Permian Resources stock at Target price is $18. The TipRanks AI analyst has an “Outperform” rating on PR stock with a $14.50 price target.

The top-rated analyst stated that continued “efficient operating and financial performance has become a hallmark” of Permian, which he believes the company can continue in the coming years. Hanold highlighted the PR company’s strong operating performance, which reflects strong growth in organic production without an increase in spending.

Hannold noted that implied guidance for oil in the fourth quarter was 2% to 3% higher than previously agreed expectations. Accordingly, he now expects 188 million barrels per day (oil) for the fourth quarter, which is 3% higher than his previous estimate. The analyst added that management appears confident of keeping capital spending steady at current levels while generating strong free cash flow, while supporting the dividend even at around $40 per barrel.

Additionally, Hanold sees potential for Permian’s consistent dividend increase in early 2026. He also expects the company to make opportunistic stock buybacks. The analyst expects Permian to use remaining free cash flow to bolster its already strong balance sheet (leverage ratios of 0.8x).

Duke Energy

Finally, let’s look Duke Energy (Doc), an energy holding company that generates and distributes electricity and natural gas. The company recently reported better-than-expected adjusted earnings per share for the third quarter, citing the implementation of new fares and ridership, along with increased retail sales volumes.

Last month, Duke Energy declared a quarterly cash dividend of $1,065 per share, payable on December 16. With annual dividends of $4.26 per share, DUK stock offers a yield of 3.4%.

Referring to the Q3 performance, Evercore Analyst Nicholas Amicucci reiterated his Buy rating on DUK shares with… Target price is $143. In comparison, TipRanks’ AI analyst has a “Neutral” rating on Duke Energy stock with a price target of $135.

Amicucci pointed to Duke Energy’s strong third-quarter results and an early look at its updated capital plan expected to be announced in February 2026. Notably, the company mentioned a $95 billion to $105 billion plan for 2026 to 2030, with an equity financing target of 30% to 50%.

Furthermore, the 5-star analyst highlighted that management sees continued momentum in the coming year, anticipating the conversion of high-load economic opportunities into tangible projects through signed energy services agreements. Amicucci added that Duke Energy is well positioned to add at least 8.5 GW of dispatchable new generation across its service areas, including about 1 GW of rates and 7.5 GW of new natural gas assets.

Overall, Amicucci remains optimistic about Duke’s future growth, driven by outstanding service areas, a strong pipeline of new projects, and the fact that about 90% of its electric capital spending qualifies for effective recovery mechanisms, “apparently alleviating all regulatory delays.”

Amicucci is ranked No. 693 out of more than 10,000 analysts tracked by TipRanks. His evaluations were successful 79% of the time, generating an average return of 48.1%.

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