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. 

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