Top Wall Street analysts prefer these dividend stocks for consistent returns

Earnings of main U.S. firms and the uncertainty round tariffs continued to influence investor sentiment this week. Whereas the inventory market stays unstable, traders searching for constant returns may add some engaging dividend shares to their portfolios.

On this regard, inventory picks of high Wall Avenue analysts may be useful, because the suggestions of those consultants are primarily based on in-depth evaluation of an organization’s financials and talent to pay dividends.

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

This week’s first dividend choose is House Depot (HD). The house enchancment retailer reported blended outcomes for the primary quarter of fiscal 2025 however reaffirmed its full-year steerage. The corporate expressed its intention to keep up its costs and never enhance them in response to tariffs.

House Depot declared a dividend of $2.30 per share for the primary quarter of 2025, payable on June 18, 2025. At an annualized dividend of $9.20 per share, HD inventory presents a dividend yield of two.5%.

Following the Q1 FY25 outcomes, Evercore analyst Greg Melich reiterated a purchase ranking on HD inventory with a value goal of $400. The analyst thinks that the danger/reward profile of House Depot inventory is likely one of the finest in Evercore’s protection. 

Melich contends that whereas House Depot’s headline outcomes seem bizarre, he believes {that a} notable inflection has begun. The analyst highlighted sure positives in House Depot’s Q1 efficiency, together with stabilizing visitors, bettering shrink (stock misplaced as a consequence of theft or different causes) charges, and acceleration in on-line gross sales progress to eight% after staying decrease than 5% since Q3 FY22.   

“HD stays a benchmark retailer, investing in know-how, multichannel and shops, even whereas present demand stays low,” concluded Melich. He continues to imagine that after the macro surroundings improves, House Depot could possibly be the “subsequent nice Client/Retail breakout a number of inventory” like Costco in 2023 and Walmart in 2024.

Melich ranks No. 607 amongst greater than 9,500 analysts tracked by TipRanks. His rankings have been worthwhile 68% of the time, delivering a median return of 12%. See House Depot Possession Construction on TipRanks.

Subsequent on this week’s checklist is Diamondback Power (FANG), an unbiased oil and gasoline firm that’s centered on onshore reserves, primarily within the Permian Basin in West Texas. FANG delivered better-than-expected first-quarter outcomes. Nonetheless, given the continuing commodity value volatility, Diamondback lowered its full-year exercise to maximise free money circulate technology.

In the meantime, the corporate returned $864 million to shareholders in Q1 2025 via inventory repurchases and a base dividend of $1.00 per share. FANG’s Q1 2025 capital return represented roughly 55% of adjusted free money circulate. Based mostly on the bottom and variable dividends paid over the previous 12 months, FANG inventory presents a dividend yield of practically 3.9%.

In a latest analysis be aware, RBC Capital analyst Scott Hanold reaffirmed a purchase ranking on FANG inventory with a value goal of $180. Hanold famous that whereas the corporate lowered its 2025 capital finances by $400 million or 10% to $3.4 – $3.8 billion, the manufacturing outlook was lower by only one%.

The analyst said that Diamondback’s transfer to cut back its capital spending plan elevated his free money circulate estimate by 7% over the subsequent 18 months. Hanold thinks that the corporate’s determination is not going to weigh on its operational momentum or the flexibility to effectively return to its 500 Mb/d productive capability.

Commenting on FANG’s free money circulate priorities, Hanold famous that the corporate is monitoring forward of its 50% minimal shareholder return goal, because of inventory buybacks amid the pullback in shares, primarily throughout early April. He expects the corporate to make use of the remaining free money circulate to pay down the $1.5 billion time period mortgage associated to its Double Eagle-IV acquisition within the Midland Basin, which was introduced in February.

Total, Hanold’s bullish thesis on FANG inventory stays intact, and he believes that “FANG has one of many lowest price buildings within the basin and a company money circulate break-even (together with dividend) that’s among the many finest within the business.”

Hanold ranks No. 17 amongst greater than 9,500 analysts tracked by TipRanks. His rankings have been worthwhile 67% of the time, delivering a median return of 29.1%. See Diamondback Power Insider Buying and selling Exercise on TipRanks.

One other dividend-paying vitality inventory on this week’s checklist is ConocoPhillips (COP). The oil and gasoline exploration and manufacturing firm reported market-beating earnings for the primary quarter of 2025. Given a unstable macro surroundings, the corporate lowered its full-year capital and adjusted working price steerage however maintained its manufacturing outlook.

In Q1 2025, ConocoPhillips distributed $2.5 billion to shareholders, together with $1.5 billion in share repurchases and $1.0 billion through bizarre dividends. At a quarterly dividend of $0.78 per share (annualized dividend of $3.12), COP inventory presents a yield of about 3.7%.

Following investor conferences with administration in Boston, Goldman Sachs analyst Neil Mehta reiterated a purchase ranking on COP inventory with a value goal of $119. Mehta highlighted that administration sees vital uncertainty in oil costs within the close to time period as a consequence of issues about financial progress and voluntary manufacturing cuts by OPEC+. That stated, the corporate is bullish about long-term gasoline costs.

In the meantime, the analyst expects COP’s breakeven to shift decrease within the occasions forward, with main progress initiatives on monitor. Mehta said that whereas the benchmark value of West Texas Intermediate crude oil – often known as WTI – breakeven (earlier than dividend) is within the mid $40s in 2025, he sees the breakeven heading in direction of the low $30s as soon as COP’s LNG spending comes down and manufacturing at its Willow undertaking in Alaska comes on-line in 2029.

Commenting on COP’s shareholder returns, Mehta said that administration acknowledged that their determination to not stick to the $10 billion capital return goal led to short-term volatility in COP inventory. That stated, COP nonetheless presents a “compelling” return, which Mehta estimates will probably be 8%.

Mehta ranks No. 568 amongst greater than 9,500 analysts tracked by TipRanks. His rankings have been profitable 59% of the time, delivering a median return of 8.6%. See ConocoPhillips Hedge Fund Buying and selling Exercise on TipRanks.