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…