Top Wall Street analysts suggest these 3 dividend stocks for enhanced total returns

Interest in dividend stocks is increasing after the US Federal Reserve announced a new interest rate cut. Investors can consider stocks that offer dividends and also have the potential to increase total returns by allowing capital appreciation.

In this context, recommendations from leading Wall Street analysts can help us identify stocks with solid uptrends and paying attractive dividends. These experts’ stock picks are backed by in-depth analysis of a company’s growth opportunities and ability to consistently pay dividends.

Here are three dividend-paying stocks highlighted by Wall Street’s top pros tracked by TipRanks, a platform that ranks analysts based on their past performance.

We start this week Valero Energy (VLO), a producer of petroleum-based and low-carbon liquid transportation fuels and petrochemical products. In the third quarter of 2025, Valero returned $1.3 billion to shareholders through dividends of $351 million and share buybacks of $931 million. On October 29, Valero announced a quarterly dividend of $1.13 per share. VLO stock, with an annual dividend of $4.52, offers a 2.7% yield.

Valero Energy recently reported upbeat third-quarter results, supported by strong refining margins. Goldman Sachs analyst Neil Mehta reiterated his buy rating on VLO shares, citing its third-quarter performance, strong refining outlook and the company’s attractive capital return strategy. raised its price target to $197 Prices start from $180.

“Given the company’s balance sheet strength, low-cost operations and operational execution, we continue to view VLO as a significant beneficiary from our more constructive refining perspective,” Mehta said.

The 5-star analyst noted during the third-quarter earnings call that management discussed a constructive refining outlook due to limited net capacity additions and widening crude spreads. Mehta also emphasized that Valero’s non-refining businesses are performing better than Goldman Sachs’ expectations. Looking ahead, Mehta believes low inventories, resilient demand and limited net refining capacity additions support tighter supply/demand expectations for 2026.

Mehta specifically noted management’s continued focus on capital returns and its commitment to allocating excess free cash flow to shareholders. The analyst expects a stronger refining environment that will contribute to meaningful free cash flow generation; This could support returns of approximately $4.6 billion in capital in 2026, implying a return on capital of 9%.

Mehta is ranked 812th out of more than 10,000 analysts tracked by TipRanks. Their ratings were profitable 58% of the time, generating an average return of 8.7%.

We move on to the next dividend paying stock, Albertsons Companies (ANGLE). The food and drug retailer recently announced optimistic results for the second quarter of fiscal 2025, driven by strong pharmacy sales and digital business. On October 14, Albertsons announced a quarterly dividend of 15 cents per share, payable on November 7. With an annual dividend rate of 60 cents per share, ACI shares offer a dividend yield of 3.3%.

Following Albertsons’ better-than-expected second-quarter financial results, Tigress Financial analyst Ivan Feinseth reiterated a buy rating on ACI shares and modestly raised his buy rating price target $29 Prices start from $28. The analyst is bullish on Albertsons as the company is “accelerating growth through AI-powered digital sales, an expanding loyalty ecosystem, and a high-margin retail media platform.”

Feinseth highlighted Albertsons’ transformation from a traditional grocery business into a data-driven, digitally integrated food and wellness platform. This shift is fueled by the company’s e-commerce expansion, loyalty integration and rapidly expanding Albertsons Media Collective advertising network, which Feinseth believes is well positioned to be one of the most profitable long-term growth engines.

The top-rated analyst noted that ACI’s For U loyalty program supports both digital engagement and spend growth. In fact, For U membership grew by more than 13% year-over-year in the second quarter of FY25 to more than 48 million active participants. Feinseth noted that a growing member base is strengthening ACI’s business, as members transact more frequently, spend more, and increasingly redeem cross-channel rewards.

In addition, Feinseth highlighted that Albertsons is increasing shareholder returns through ongoing dividend increases and share repurchases, including the recently announced additional $750 million in accelerated share repurchase authorization. ACI expects its shares to deliver a total return of close to 50%, including dividends.

Feinseth is ranked 296th out of more than 10,000 analysts tracked by TipRanks. Their ratings were profitable 62% of the time, with an average return of 14.2%.

Finally, let’s look at the energy infrastructure provider Williams Companies (WMB). On October 28, Williams announced a quarterly cash dividend of 50 cents per share payable on December 29, 2025, reflecting a 5.3% annual increase. With an annual dividend rate of $2 per share, WMB shares offer a 3.5% yield.

RBC Capital analyst Elvira Scotto reiterated her buy rating on WMB shares ahead of Williams’ scheduled third-quarter results after market close on Nov. 3. price estimate $75. In a preview of U.S. midstream companies’ third-quarter results, Scotto cited Williams and Targa Resources (TRGP) as his picks for earnings.

Scotto noted that stagnant wind for natural gas is driving the need for more energy infrastructure due to increased power demand from electrification and artificial intelligence (AI)/data center growth. Of the stocks covered, the 5-star analyst believes “WMB is best positioned to benefit given its gas transmission asset footprint and Power Innovation projects.”

Additionally, Scotto expects WMB to deliver a CAGR (compound annual growth rate) of approximately 10% in its EBITDA (earnings before interest, taxes, depreciation, and amortization) from 2025 to 2030. The analyst looks forward to receiving additional information on WMB’s recently announced Power Innovation projects and new projects. Scotto expects an increase in Q3 2025 figures compared to the previous quarter across all business segments; Transmission, Gulf and Energy provide the largest absolute increases.

Scotto sees WMB’s February analyst day as the next catalyst for the stock. The analyst expects WMB to increase its EBITDA growth target from the 5% to 7% range to high single digits or more.

Scotto is ranked #270 out of more than 10,000 analysts followed by TipRanks. Their ratings were successful 64% of the time, with an average return of 13.7%.