Top Wall Street analysts are bullish on these 3 dividend stocks

The U.S. stock market continues to be volatile due to concerns about valuations of tech and artificial intelligence stocks and an uncertain macroeconomic backdrop. Given this scenario, investors seeking passive income can add some dividend stocks to their portfolios.

At the same time, investors might find it challenging to pick the right stock from the vast universe of dividend-paying companies. In this regard, recommendations of top Wall Street analysts can help investors select attractive dividend stocks with strong fundamentals. These experts assign their ratings after in-depth analysis of a company’s financials 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.

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 third-quarter results. Diamondback returned $892 million of capital to shareholders (50% of adjusted free cash flow) via share repurchases and dividends in the third quarter. It declared a base cash dividend of $1.00 per share for the period, payable on Nov. 20. At an annualized dividend of $4 per share, FANG offers a yield of 2.8%.

In reaction to the third-quarter print, RBC Capital analyst Scott Hanold reiterated a buy rating on Diamondback stock with a price forecast of $173. Interestingly, TipRanks’ AI Analyst is also bullish on FANG stock with an “outperform” rating and a price target of $156.

Hanold continues to view Diamondback as a core long-term holding in the energy space, given that it stands out with one of the top core inventory durations in the Permian Basin and the lowest breakeven levels of $37 to $38 per barrel (WTI, unhedged, and inclusive of capitalized costs).

“FANG remains among the most resilient E&P, with leading edge operational, capital, and production performance,” said Hanold.

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

Hanold ranks No. 69 among more than 10,000 analysts tracked by TipRanks. His ratings have been profitable 64% of the time, delivering an average return of 26.2%.

Hanold is also bullish on another dividend-paying energy company, Permian Resources (PR). The independent oil and gas company delivered upbeat earnings for the third quarter, citing its dominance in the Delaware Basin. Permian declared a base dividend of 15 cents per share for the fourth quarter, payable on Dec. 31. At an annualized dividend of 60 cents per share, PR stock offers a yield of 4.5%.

Impressed by the results, Hanold reaffirmed a buy rating on Permian Resources stock with a price target of $18. TipRanks’ AI Analyst has an “outperform” rating on PR stock with a price target of $14.50.

The top-rated analyst stated that continued “proficient operational and financial performance has become a hallmark” for Permian, which he believes the company can continue in the years ahead. Hanold highlighted PR’s robust operational performance that reflected a solid growth in organic production with no increase in spending.

Hanold noted that the implied fourth-quarter oil guidance is up 2% to 3% from the prior consensus forecast. Accordingly, he now expects 188 Mb/d (oil) for the fourth quarter, which is 3% above his previous estimate. The analyst added that management seems confident about keeping capital spending steady at current levels while generating solid free cash flow, with dividend payment supported even at around $40 per barrel.

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

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

Last month, Duke Energy declared a quarterly cash dividend of $1.065 per share, payable on Dec. 16. At an annualized dividend of $4.26 per share, DUK stock offers a yield of 3.4%.

Noting the third-quarter performance, Evercore analyst Nicholas Amicucci reaffirmed a buy rating on DUK stock with a price target of $143. In comparison, TipRanks’ AI Analyst has a “neutral” rating on Duke Energy stock with a price target of $135.

Amicucci noted Duke Energy’s strong third-quarter results and an early look into 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 funding target of 30% to 50%.

Furthermore, the 5-star analyst highlighted that management sees continued momentum into the next year, expecting to turn large load economic opportunities into tangible projects with signed energy service agreements. Amicucci added that Duke Energy is well-positioned to add at least 8.5 gigawatt of new dispatchable generation across its service areas, including about 1 GW of uprates and 7.5 GW of new natural gas assets.

Overall, Amicucci remains bullish on Duke’s future growth, driven by its premium service areas, solid pipeline of new projects, and the fact that about 90% of its electric capital spending qualifies for efficient-recovery mechanisms, “alleviating seemingly all regulatory lag.”

Amicucci ranks No. 693 among more than 10,000 analysts tracked by TipRanks. His ratings have been successful 79% of the time, delivering an average return of 48.1 %.