Analysts Highlight Top Dividend Stocks for Income Investors
The U.S. Federal Reserve approved a widely anticipated interest rate cut last week and indicated that further reductions may follow. As the economy transitions to a low-interest rate environment, many income-focused investors are shifting their attention to dividend stocks that provide appealing yields. Top analysts on Wall Street have identified several promising options, guided by their expertise and extensive analyses. Here are three dividend-paying stocks recommended by leading professionals, as tracked by TipRanks, a platform that ranks analysts based on past performance.
CVS Health: A Turnaround Opportunity
CVS Health has declared a quarterly dividend of $0.665 per share, set to be paid on November 3, 2025. With an annualized dividend of $2.66, CVS currently offers a dividend yield of 3.6%. Following discussions with CVS Health’s CEO, David Joyner, and CFO, Brian Newman, Morgan Stanley analyst Erin Wright maintained a buy rating on CVS stock, with a price target of $82. Wright expressed confidence in the company’s integrated model and its potential for a successful turnaround.
Wright noted that after a year in his role, Joyner is focused on stabilizing and transforming the company. She emphasized that CVS’s integrated approach aims to address issues of healthcare affordability and inconsistent care delivery in the United States. Management highlighted improvements in CVS’s Medicare Star Ratings and innovative pricing models that enhance the company’s competitive position.
Looking ahead to 2026, CVS is reportedly making significant strides in revitalizing its Aetna health insurance arm and preparing for a successful pharmacy benefit manager selling season. Furthermore, management is prioritizing a return to its target leverage of low 3x and plans to maintain its dividend until it reaches the desired payout ratio of approximately 30% by 2023. Wright ranks No. 244 out of over 10,000 analysts tracked by TipRanks, with a profitability rate of 65% on her ratings, yielding an average return of 13.4%.
Williams Companies: Steady Growth in Energy Sector
Another strong dividend option is Williams Companies, a leader in energy infrastructure. The company announced a quarterly cash dividend of $0.50 per share, representing a year-over-year increase of 5.3%. With an annualized dividend of $2 per share, Williams offers a yield of 3.4%. Following a recent conference call with CFO John Porter, Stifel analyst Selman Akyol reiterated a buy rating on the stock with a price target of $64.
Akyol emphasized that Williams is well-positioned for growth due to its focus on natural gas, driven by increasing demand from LNG exports, power generation, and data centers. The company is targeting 6 gigawatts of total capacity, with the Socrates project accounting for 400 megawatts. Akyol highlighted that WMB is also committed to maintaining strong dividend payments and a solid balance sheet, aiming for leverage ratios between 3.5x and 4.0x.
Management’s focus on a high-quality asset base supports a stable and growing dividend, with annual increases projected between 5% and 6%. Akyol’s positive outlook on Williams is underscored by his track record, where he ranks No. 354 among more than 10,000 analysts on TipRanks, achieving a profitability rate of 66% with an average return of 10.6%.
Chord Energy: Expanding Through Strategic Acquisitions
Finally, Chord Energy, an independent exploration and production company primarily operating in the Williston Basin, is attracting attention as well. The company recently announced a base dividend of $1.30 for the second quarter. With a total of $5.34 in dividends paid over the past twelve months, Chord Energy offers a robust yield of 5.1%. This week, the company revealed plans to acquire assets in the Williston Basin from Exxon Mobil’s XTO Energy Inc. for $550 million.
Analyst Gabriele Sorbara from Siebert Williams Shank described the acquisition as a strategic move that consolidates Chord’s core assets. Sorbara noted that the deal is expected to enhance operational efficiency and boost cash flow per share. Although the net debt to EBITDA ratio may rise slightly post-acquisition, it remains low compared to industry peers, reflecting Chord’s strong capital returns.
Chord Energy continues its commitment to returning over 75% of its adjusted free cash flow to shareholders through dividends and buybacks. Sorbara reiterated a buy rating on Chord Energy with a price target of $140. His analysis places him at No. 142 among over 10,000 analysts on TipRanks, with a profitability rate of 57% and an impressive average return of 24.4%.
As investors navigate the evolving market landscape, these dividend-paying stocks identified by top analysts present attractive opportunities for income generation.
