Top Wall Street analysts are upbeat on these 3 dividend stocks for enhanced returns

The U.S. Federal Reserve lower key rates of interest by 25 foundation factors, decreasing borrowing prices for the third time in 2025. Given the decrease rate of interest backdrop (which reduces the attraction of fixed-income investments) and a risky inventory market, some traders would possibly wish to think about including dividend shares to their portfolios to make sure steady revenue and improve general returns.

The inventory picks of prime Wall Avenue analysts might help traders choose enticing dividend-paying corporations.

Listed below are three dividend-paying shares, highlighted by Wall Avenue’s prime execs, as tracked by TipRanks, a platform that ranks analysts based mostly on their previous efficiency.

This week’s first dividend decide is Devon Vitality (DVN), an unbiased oil and pure fuel exploration and manufacturing (E&P) firm. Within the third quarter of 2025, Devon returned $401 million to shareholders by means of share repurchases and dividends. The corporate’s fastened quarterly dividend of $0.24 per share (annualized dividend of $0.96 per share) signifies a yield of two.5%.

Not too long ago, JP Morgan analyst Arun Jayaram upgraded Devon Vitality inventory to purchase from maintain, although he lowered the value goal to $44 from $49. TipRanks’ AI Analyst has an “outperform” score on DVN inventory with a value goal of $43.

Jayaram defined that his score improve was based mostly on DVN’s compelling valuation in comparison with its friends, supported by free money circulate beneficial properties from the corporate’s $1 billion enterprise optimization plan. The 5 star analyst famous that Devon achieved about 60% of its $1 billion objective in slightly over half a 12 months following the plan’s formal rollout.

The analyst famous that Devon’s Delaware Basin properly productiveness was adversely impacted by the corporate’s deal with finishing the next proportion of Wolfcamp B wells. That stated, Jayaram expects properly productiveness to be steady in 2026 and 2027 attributable to a “steadier mixture of secondary zones” in comparison with 2025.

General, Jayaram is bullish on Devon, on condition that it has a top-quality acreage place in a very powerful elements of the Delaware Basin, Bakken, and Eagle Ford shale areas. Furthermore, the corporate has the choice to develop within the STACK and Powder River Basins.

“We consider DVN’s core franchise property have the potential to offer a big stock of lower-risk, excessive rate-of-return growth drilling alternatives which are important given the depleting nature of an E&P’s asset base,” stated Jayaram.

Jayaram ranks No. 655 amongst greater than 10,100 analysts tracked by TipRanks. His rankings have been worthwhile 59% of the time, delivering a mean return of 10.3%. See Devon Vitality Statistics on TipRanks. 

The following dividend-paying inventory is EOG Sources (EOG), a crude oil and pure fuel exploration and manufacturing firm with reserves within the U.S. and Trinidad. Within the third quarter of 2025, EOG paid $545 million in common dividends and repurchased shares value $440 million. Final month, EOG introduced a quarterly dividend of $1.02 per share, payable on January 30, 2026. At an annualized dividend of $4.08, EOG’s yield stands at 3.7%.

Siebert Williams Shank analyst Gabriele Sorbara reaffirmed a purchase score on EOG inventory with a value goal of $150. The inventory additionally scores an “outperform” score from TipRanks’ AI Analyst, with a value goal of $127.

Sorbara views EOG as a “premier” large-cap firm with the flexibility to navigate by means of commodity cycles, supported by its stable stability sheet and robust stock. The analyst additionally famous the corporate’s large free money flow-generating capabilities.

Notably, Sorbara highlighted EOG’s dedication to return at the very least 70% of its free money circulate to shareholders yearly by means of dividends and share buybacks. In actual fact, the power firm has the flexibleness to return 100% of free money circulate based mostly on its stability sheet power.

The 5-star analyst additionally famous EOG’s efforts to leverage superior expertise to seize additional alternatives within the Delaware Basin, with the corporate now figuring out greater than 9 totally different growth targets. Amongst different positives, Sorbara additionally talked about that EOG is monitoring forward of its goal for the primary 12 months with regard to the $150 million synergies from its Encino acquisition. Extra financial savings are anticipated from components like improved infrastructure, manufacturing effectivity, and advertising and marketing offers by means of EOG’s midstream community.

Sorbara ranks No. 225 amongst greater than 10,100 analysts tracked by TipRanks. His rankings have been profitable 61% of the time, delivering a mean return of 18.4%. See EOG Sources Possession Construction on TipRanks. 

Lastly, let’s take a look at pharmacy chain CVS Well being (CVS). The corporate’s turnaround efforts are serving to it drive improved efficiency in a difficult enterprise backdrop. At its Investor Day occasion on December 9, CVS Well being supplied constructive updates and said that it expects to realize a mid-teens adjusted earnings per share (EPS) compound annual development charge (CAGR) by means of 2028. At a quarterly dividend of $0.665 per share (annualized dividend of $2.66 per share), CVS inventory provides a yield of three.4%.

Following Investor Day, Mizuho analyst Ann Hynes reiterated a Purchase score on CVS inventory and raised her value goal to $95 from $88. “CVS is our prime decide in our protection universe,” stated the 5-star analyst, and cited structural enchancment in retail earnings forecast as the rationale for her revised value goal. Apparently, TipRanks’ AI Analyst has a “impartial” score on CVS with a value goal of $81.

Hynes famous that CVS’ mid-teens adjusted EPS CAGR goal doesn’t take into consideration any extra share buybacks, which she expects to happen as soon as the corporate achieves its leverage targets, probably by the top of subsequent 12 months.

The analyst additionally highlighted the corporate’s efforts to enhance margins of the Healthcare Advantages (HCB) phase, which has been below stress attributable to a continued rise within the medical loss ratio (MLR). This ratio is anticipated to say no by about 50 foundation factors in 2026 attributable to higher pricing, decreased advantages below Medicare Benefit (MA) plans, and the corporate’s determination to exit the Well being Insurance coverage Trade (HIX) enterprise.

Hynes additionally famous the advance in CVS’ Pharmacy and Client Wellness (PCW) phase outlook, with the corporate now anticipating flat adjusted working revenue development in comparison with the earlier steerage of a mid-single-digit decline. This enchancment is pushed by market share beneficial properties, a greater reimbursement backdrop, and value financial savings.

Hynes ranks No. 733 amongst greater than 10,100 analysts tracked by TipRanks. Her rankings have been profitable 60% of the time, delivering a mean return of 8.5%. See CVS Well being Choices Exercise on TipRanks.