The stock market has been buzzing with excitement as President Donald Trump takes the reins, but plenty of questions remain about tax cuts and tariffs. Dividend-paying stocks can provide investors with some cushion if the market becomes rocky.
Amid an uncertain macro backdrop, investors looking for stable returns can add some solid dividend stocks to their portfolios. To choose the right dividend stocks, investors can consider insights from Wall Street’s best analysts, as they analyze a company’s ability to pay a consistent dividend, backed by strong cash flows.
Here are three Dividend stocksmost notable Best Wall Street Pros It is also tracked by Tipranks, a platform that ranks analysts based on their past performance.
AT&T
The first company to pay dividends this week is the telecommunications company AT&T ((R). Most recently, the company declared a quarterly dividend of $0.2775 per share, with the payment due on February 3. AT&T offers a dividend yield of about 5%.
Most recently, Argus Research Analyst Joseph Bonner AT&T shares were upgraded to Buy from Hold, with a price target of $27. The Bonner Bullish Event follows AT&T’s Analyst Day, where the company discussed its strategy and long-term financial goals.
Bonner noted that management raised its 2024 adjusted EPS forecast and revealed strong estimates for shareholder returns, earnings and cash flow growth, as AT&T “finishes digging itself out of some troublesome acquisitions and focuses on the convergence of wireless and fiber Internet services.”
The analyst expects the company’s cost-saving efforts, network modernization and revenue acceleration to gradually be reflected in its performance. He believes management’s vision to capture opportunities emerging from wireless and fiber convergence, coupled with the company’s strategic investments, provides a compelling outlook for future growth and shareholder returns.
Bonner noted that at its Analyst Day event, AT&T indicated that no dividends or paybacks were under consideration while the company invests in 5G and fiber broadband networks and continues to reduce its debt. However, management is committed to protecting dividend payments after reducing them by half in March 2022. Bonner highlighted that AT&T plans to return $40 billion to shareholders in 2025-2027 via $20 billion in dividends and $20 billion in stock restocks.
Bonner is ranked No. 310 out of more than 9,300 analysts tracked by Tipranks. His evaluations were profitable 67% of the time, generating an average return of 14.1%. See AT&T stock buyback on tipranks.
String energy
We move on String energy ((CAD), an independent oil and gas company operating in the Williston Basin. Under its capital returns program, CHORD Energy aims to return more than 75% of free cash flow. The company recently paid a basic dividend of $1.25 per share and a variable dividend of 19 cents per share.
Ahead of Energy’s Q4 2024 results, Mizuho analyst William Window He reiterated a Buy rating on the stock with a price target of $178, calling Chrd a top pick. The analyst said his Q4 2024 estimates for CFPs (cash flow per share) and EBITDX (earnings before interest, taxes, depreciation and exploration) are essentially in line with Street estimates.
Janela added that compared to its peers, there is more visibility in Ender Energy’s outlook for this year, as it has already issued its initial guidance. Moreover, the company is expected to demonstrate enhanced capital efficiency year-on-year, given that it has fully integrated assets from Energy gain.
“The defensive balance sheet (about 0.2x net debt/EBITDX, one of the lowest among E&P peers) also leaves it well positioned in a volatile oil price environment,” Janela said.
Although CHRD shares have underperformed peers in 2024, the analyst noted that the stock now trades at a wider discount to peers on an EV/EBITDX and FCF/EV basis, which he believes suffers from the company’s improved discounts and higher-quality inventory in the Bakken. Budin after the acquisition of enerplus. Finally, based on my Q4 2024 Free Cash Flow (FCF) estimate of $235 million, Janela expects about $176 million in cash revenue, including $76 million in core earnings. The majority of the variable FCF portion is expected to reflect share repurchases, as was the case in the third quarter.
Janela is ranked No. 656 out of more than 9,300 analysts tracked by Tipranks. His evaluations were profitable 52% of the time, generating an average return of 19.2%. See Internal energy trading activity on tipranks.
Diamondback Energy
Another Mizuho Analyzer, Nitin Kumarrefine on Diamondback Energy ((Fang), an independent oil and natural gas company focused on reserves in the Permian Basin. The company paid a basic dividend of 90 cents per share for Q3 2024.
The company is scheduled to announce its results for the fourth quarter of 2024 in Late February. Kumar expects Fang to report Q4 2024 EBITDA, free cash flow, and capital expenditures of $2.543 billion, $1.243 billion and $996 million, versus a Wall Street consensus of $2.485 billion, $1.251 billion and $1.004 billion, respectively.
The fact that Fang has maintained its initial 2025 forecast, which it issued while announcing the acquisition of Endevor Energy Resources in February 2024, reflects strong execution and modest cost savings, the analyst stated.
Overall, Kumar reaffirmed a Buy rating on Fang shares with a price target of $207. He highlighted, “Fang is a pioneer in cash dividend payouts, with 50% of free cash now returned to investors, including a high basis dividend yield.”
He added that the company’s high dividend yield reflects superior cost control and unit margins. Furthermore, the analyst believes that with the Endeavor acquisition completed, the scale and quality of the combined asset base is impressive.
Kumar is ranked No. 119 out of more than 9,300 analysts tracked by Tipranks. His evaluations were profitable 67% of the time, generating an average return of 14.1%. See Diamondback Ownership Structure on tipranks.
