Wall Street analysts are confident about these 3 dividend-paying stocks

Heading into 2026, investor focus could shift from fixed-income instruments to attractive dividend stocks, given a lower interest rate backdrop.

Picking the right names from a vast universe of dividend-paying companies is a challenging task. Tracking the stock picks of top Wall Street analysts can help investors make the right choices, as these experts assign their ratings after conducting a thorough analysis of a company’s fundamentals.

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.

Oil and gas giant Chevron (CVX) is this week’s first dividend pick. The company returned $6 billion of cash to shareholders in the third quarter via $3.4 billion in dividends and $2.6 billion in share repurchases. With a quarterly dividend of $1.71 per share (annualized dividend of $6.84 per share), Chevron offers a yield of about 4.5%.

Following meetings with Chevron’s management, Piper Sandler analyst Ryan Todd reiterated a buy rating on CVX stock with a price target of $178. Interestingly, TipRanks’ AI Analyst is also bullish on the energy company, with an “outperform” rating and a price target of $164.

Todd noted that while the ongoing scenario of an unfavorable crude backdrop and positive refining business has affected Chevron’s performance, his meetings with the management reflected the company’s solid position.

The analyst contends that Chevron’s capital efficiency is underappreciated. Notably, the company’s upstream capital expenditure/boe (barrel of oil equivalent) produced is 29% below the peer average. He added that given the declining capex and operating expenses, the benefits from artificial intelligence (AI) that have yet to materialize, and a resource base that is better than feared, Chevron’s free cash flow (FCF) annual growth outlook of 10% per year seems conservative.

Additionally, Todd argued that “while investors may continue to worry about TCO [Tengizchevroil joint venture] contract extensions, lingering post-2030 resource depth questions are misguided.” In this matter, the analyst noted that aside from the projects included in Chevron’s official plan, management is upbeat about additional opportunities presented by improved global access (especially in the Middle East), a rise in exploration activities, and expansion and technology-driven prospects.

Todd ranks No. 868 among more than 10,200 analysts tracked by TipRanks. His ratings have been profitable 58% of the time, delivering an average return of 8.5%. See Chevron Ownership Structure on TipRanks. 

Restaurant company Darden Restaurants (DRI) owns a portfolio of brands, including Olive Garden, LongHorn Steakhouse and Yard House. It recently announced a quarterly dividend of $1.50 per share, payable on Feb. 2, 2026. At an annualized dividend of $6 per share, DRI offers a yield of 3.2%.

Following the company’s mixed results for the second quarter of fiscal 2026, BTIG analyst Peter Saleh reiterated a buy rating on Darden stock with a price target of $225. In comparison, TipRanks’ AI Analyst has a price target of $218 with an “outperform” rating.

Saleh noted that Darden posted a mixed, but “mostly positive,” quarter, with better-than-anticipated comparable sales fueled by improved traffic at the company’s major brands.

“Its strategy of under-pricing inflation, leaning on delivery, and offering a desirable menu resonated with guests, driving another quarter of sizable industry outperformance,” said Saleh.

The five-star analyst highlighted that high beef prices continued to be a headwind and weighed on the quarter’s restaurant margins and earnings per share (EPS). That said, Saleh is optimistic about Darden achieving its guidance, as beef costs appear to have peaked, labor cost pressures are easing, and management is relying slightly on price increases to offset commodity costs.

Overall, Saleh continues to be impressed by the momentum in Darden’s sales, and although earnings haven’t kept pace yet, they are expected to improve going forward.

Saleh ranks No. 641 among more than 10,200 analysts tracked by TipRanks. His ratings have been profitable 61% of the time, delivering an average return of 10.5%. See Darden Restaurants Statistics on TipRanks. 

This week’s third dividend pick is Ares Capital (ARCC), a specialty finance company that provides direct loans and other investments to private middle-market companies. The company announced a dividend of 48 cents per share, payable on Dec. 30, 2025. At an annualized dividend per share of $1.92, ARCC stock offers a yield of 9.5%.

In his latest research note on business development companies (BDCs), RBC Capital analyst Kenneth Lee called Ares Capital one of his favorite BDC names for 2026 and reaffirmed a buy rating with a price target of $23. TipRanks’ AI Analyst has assigned an “outperform” rating to ARCC stock with a price target of $24.

While Lee is less constructive on the BDC space heading into 2026 due to a potential decline in net interest income (NII) and return on equity (ROE) from lower base rates, he remains bullish on Ares Capital. In particular, he cited management’s confidence in sustaining dividends at current levels despite expectations of lower base rates.

Among the key strengths, Lee noted ARCC’s dominant position in the BDC market, its extensive scale, and strong originations in the Ares direct lending platform. He also highlighted Ares Capital’s more than 20 years of experience.

“In our view, ARCC’s dividends are well supported by the company’s core earnings per share generation plus potential net realized gains,” said Lee to support his bullish stance.

Lee ranks No. 341 among more than 10,200 analysts tracked by TipRanks. His ratings have been successful 66% of the time, delivering an average return of 11.5%. See Ares Capital Insider Trading Activity on TipRanks.