Top Wall Street analysts suggest these 3 dividend stocks for enhanced total returns

Focus on dividends is increasing, as the US Federal Reserve announced another interest rate cut. Investors can consider stocks that offer dividends and also have the potential for capital appreciation, enhancing the overall return.

In this regard, recommendations from top Wall Street analysts can help us identify stocks that have a strong upside and pay attractive dividends. These experts’ stock picks are backed by in-depth analysis of the company’s growth opportunities and its ability to consistently pay dividends.

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.

We start this week with Valero energy (VLO), a manufacturer of petroleum-based, low-carbon liquid transportation fuels and petrochemical products. In Q3 2025, Valero returned $1.3 billion to shareholders through $351 million in dividends and $931 million from stock repurchases. On October 29, Valero declared a quarterly dividend of $1.13 per share. With an annual dividend of $4.52, VLO stock offers a yield of 2.7%.

Valero Energy recently reported upbeat third-quarter results, supported by strong refining margins. Taking into account the third-quarter performance, strong refining outlook, and the company’s attractive capital returns strategy, Goldman Sachs analyst Neil Mehta reiterated a buy rating on VLO shares and He raised his price target to $197 From $180.

“We continue to view VLO as a key beneficiary of our constructive refining outlook, given the company’s balance sheet strength, low-cost operations and operational execution,” Mehta said.

The 5-star analyst noted that during the third-quarter earnings call, management discussed a constructive outlook for refining, driven by limited net capacity additions and widening crude oil spreads. Mehta also highlighted that Valero’s non-refining business performed better than Goldman Sachs expected. Looking ahead, Mehta believes low inventories, resilient demand, and limited net refining capacity additions support a tighter supply and demand outlook for 2026.

In particular, Mehta noted management’s continued focus on capital returns and commitment to allocating excess free cash flow to shareholders. The analyst expects the strong refining backdrop to generate meaningful free cash flow, which could support approximately $4.6 billion in capital returns in 2026, implying a return on capital of 9%.

Mehta is ranked No. 812 out of more than 10,000 analysts tracked by TipRanks. Its reviews were profitable 58% of the time, generating an average return of 8.7%.

We move on to the next dividend paying stock, Albertsons Companies (ACI). The food and pharmaceutical retailer recently reported upbeat results for the second quarter of fiscal 2025, driven by strong pharmaceutical sales and digital business. On October 14, Albertsons declared a quarterly dividend of 15 cents per share, payable on November 7. With an annual dividend of 60 cents per share, ACI stock offers a dividend yield of 3.3%.

On the heels of Albertsons’ better-than-expected financial results in the second quarter, Tigress Financial analyst Evan Finseth reiterated a buy rating on ACI shares and modestly increased his stock. Target price to $29 From $28. The analyst is bullish on Albertsons as the company “accelerates growth through AI-powered digital sales, expanding loyalty ecosystem, and high-margin retail media platform.”

Feinseth highlighted that Albertsons is transforming from a traditional grocery operator to a digitally integrated, data-driven food and health platform. This change is being fueled by the company’s e-commerce expansion, loyalty integration, and rapid expansion of Albertsons Media Collective’s advertising network, which Feinseth believes is well-positioned to become one of its most profitable long-term growth engines.

The top-rated analyst noted that ACI’s For U loyalty program is driving both digital engagement and spending growth. In fact, For U membership increased more than 13% year-over-year in Q2FY25, reaching more than 48 million active participants. Finseth noted that the growing member base is strengthening ACI’s business as members transact more frequently, spend more, and increasingly use rewards across channels.

Additionally, Finseth highlighted that Albertsons is enhancing shareholder returns through ongoing dividend increases and share repurchases, including a recently announced additional $750 million accelerated share repurchase authorization. ACI stock is expected to deliver a total return of approximately 50%, including dividends.

Feinseth is ranked No. 296 out of more than 10,000 analysts tracked by TipRanks. Its reviews were profitable 62% of the time, generating an average return of 14.2%.

Finally, let’s take a look at the energy infrastructure provider Williams Companies (WMB). On October 28, Williams declared a quarterly cash dividend of 50 cents per share, payable on December 29, 2025, and reflecting a 5.3% increase year over year. With an annual dividend of $2 per share, WMB stock offers a yield of 3.5%.

Ahead of Williams’ third-quarter results due after the market close on November 3, RBC Capital analyst Elvira Scotto reiterated a buy rating on WMB shares with Price forecast $75. In a preview of third-quarter results for companies in the U.S. logistics sector, Scotto mentioned Williams and Targa Resources (TRGP) as her favorite earnings names.

Secular tailwinds for natural gas due to rising energy demand for electricity and artificial intelligence (AI)/data center growth are driving the need for more energy infrastructure, Scotto noted. The 5-star analyst believes that among the stocks within her coverage, “WMB is best positioned to benefit given its footprint of gas transmission assets and its projects in energy innovation.”

Furthermore, Scotto expects WMB to deliver a CAGR of approximately 10% in EBITDA (earnings before interest, taxes, depreciation, and amortization) from 2025 through 2030. The analyst is looking forward to additional information on WMB’s recently announced energy innovation projects and any new projects. Scotto expects Q3 2025 numbers to rise slightly on a quarterly basis across all business sectors, with transportation, Gulf and energy companies leading the largest absolute increase.

Scotto sees February’s WMB Analyst Day as the next catalyst for the stock. The analyst expects WMB to increase its EBITDA growth target from the 5% to 7% range to high single digits or more.

Scotto is ranked No. 270 out of more than 10,000 analysts tracked by TipRanks. Their evaluations were successful 64% of the time, generating an average return of 13.7%.