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

The U.S. Federal Reserve cut key interest rates by 25 basis points, lowering borrowing costs for the third time in 2025. Given the lower interest rate backdrop (which reduces the appeal of fixed-income investments) and a volatile stock market, some investors might want to consider adding dividend stocks to their portfolios to ensure stable income and enhance overall returns.

The stock picks of top Wall Street analysts can help investors select attractive dividend-paying companies.

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.

This week’s first dividend pick is Devon Energy (DVN), an independent oil and natural gas exploration and production (E&P) company. In the third quarter of 2025, Devon returned $401 million to shareholders through share repurchases and dividends. The company’s fixed quarterly dividend of $0.24 per share (annualized dividend of $0.96 per share) indicates a yield of 2.5%.

Recently, JP Morgan analyst Arun Jayaram upgraded Devon Energy stock to buy from hold, though he lowered the price target to $44 from $49. TipRanks’ AI Analyst has an “outperform” rating on DVN stock with a price target of $43.

Jayaram explained that his rating upgrade was based on DVN’s compelling valuation compared to its peers, supported by free cash flow gains from the company’s $1 billion business optimization plan. The 5 star analyst noted that Devon achieved about 60% of its $1 billion goal in a little over half a year following the plan’s formal rollout.

The analyst noted that Devon’s Delaware Basin well productivity was adversely impacted by the company’s focus on completing a higher proportion of Wolfcamp B wells. That said, Jayaram expects well productivity to be stable in 2026 and 2027 due to a “steadier mix of secondary zones” compared to 2025.

Overall, Jayaram is bullish on Devon, given that it has a top-quality acreage position in the most important parts of the Delaware Basin, Bakken, and Eagle Ford shale regions. Moreover, the company has the option to expand in the STACK and Powder River Basins.

“We believe DVN’s core franchise assets have the potential to provide a large inventory of lower-risk, high rate-of-return development drilling opportunities that are critical given the depleting nature of an E&P’s asset base,” said Jayaram.

Jayaram ranks No. 655 among more than 10,100 analysts tracked by TipRanks. His ratings have been profitable 59% of the time, delivering an average return of 10.3%. See Devon Energy Statistics on TipRanks. 

The next dividend-paying stock is EOG Resources (EOG), a crude oil and natural gas exploration and…