Top Wall Street analysts recommend these stocks for consistent income

As stock markets remain volatile, investors looking for a steady stream of income can strengthen their portfolios by adding attractive dividend stocks. Picking good dividend stocks from a wide universe of companies can be difficult.

In this regard, advice from top Wall Street analysts can help investors make the right choice; because these experts determine buy ratings after thoroughly analyzing a company’s fundamentals and its 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.

Capital of Ares

This week’s first dividend pick Capital of Ares (ARCC) is a business development company providing comprehensive financing solutions to the middle market. The company recently reported better-than-expected fourth-quarter earnings and announced a first-quarter dividend of 48 cents per share. This dividend will be paid on March 31. ARCC shares offer a 9.64% dividend yield.

Following the press release, RBC Capital analyst Kenneth Lee reiterated a buy rating on Ares Capital and lowered the stock price slightly. price target $22 at $23 while adjusting its forecasts. “We support ARCC’s strong track record of managing risks and scaling benefits throughout the cycle,” Lee said.

The 5-star analyst emphasized that ARCC’s credit performance remains strong despite recent concerns about software credits due to potential AI-related disruptions. Lee argues that investors have not fully valued the durability of Ares Capital’s software lending business. The company is focused on underlying/infrastructure software, proprietary data, and lending to companies in regulated end markets.

Lee finds ARCC’s credit performance encouraging; Non-accrued amounts remained at 1.8% of the portfolio, remaining unchanged compared to the previous quarter. In addition, the company’s internal risk rating remained at 3.1, unchanged from the previous quarter, and investments in the bottom 2 risk ratings remained at a low level of approximately 4% of the portfolio. Lee stated that management sees minimal AI risk in the near term and manageable risk in the medium and long term.

Overall, Lee sees Ares Capital on the rise, given that it is a market-leading BDC with scale providing a competitive advantage. He added that ARCC’s dividends are well supported by the company’s underlying earnings per share and potential net realized earnings.

Lee is ranked #689 out of more than 12,100 analysts tracked by TipRanks. It did well in the ratings 62% of the time and delivered an average return of 8.7%. Check out Ares Capital Financials on TipRanks.

ConocoPhillips

Oil and gas exploration and production company ConocoPhillips (POLICE) recently announced its fourth-quarter results and announced that it will distribute a dividend of 84 cents per share for the first quarter. The company distributed $9 billion, or 45% of its cash flow operations, to shareholders, including $5 billion through stock repurchases and $4 billion through dividends. COP offers a dividend yield of 2.91%.

Reacting to the fourth-quarter results, Goldman Sachs analyst Neil Mehta reaffirmed his buy rating on COP shares and upgraded his buy rating on the stock. price target $120 Prices start from $115. Despite concerns about weaker-than-expected U.S. natural gas realizations and a lower 48 volume outlook in the current commodity price environment, Mehta remains bullish on ConocoPhillips due to its high-quality, low-cost inventory, strong free cash flow and attractive returns on capital.

Mehta emphasized that COP management continues to target incremental free cash flow of $7 billion by 2029 compared to 2025, at a WTI price of $70/bbl. Approximately 1 billion dollars of this target is expected to be realized in 2026 with the support of the North Field East project.

“We see long-term value in equities as major projects come online, capital is reduced and oil supply/demand fundamentals improve,” Mehta said.

The analyst is bullish on ConocoPhillips hitting its 2029 free cash flow target, supported by four major growth projects (NFE, North Field South, Port Arthur and Willow) and $1 billion in cost reductions and margin expansion. Mehta expects COP to return about 45% of its cash from operations, in line with the company’s long-term history.

Mehta is ranked #559 out of more than 12,100 analysts tracked by TipRanks. It did well in the ratings 62% of the time and delivered an average return of 10.7%. See ConocoPhillips Ownership Structure on TipRanks.

Devon Energy

Another dividend-paying stock on this week’s list is Devon Energy (DVN), a leading oil and gas producer with a diversified multi-basin portfolio. Earlier this month, Devon announced the merger of all its holdings. Coterra Energy (CTRA), a large-scale producer with a dominant position in the Permian Basin.

Interestingly, upon completion of the deal, Devon plans to offer a quarterly dividend of 31.5 cents per share (more than DVN’s current fixed dividend of 24 cents per share) and a new share repurchase authority in excess of $5 billion; Both of these are subject to board approval. Currently, with an annual dividend rate of 96 cents per share, DVN offers a dividend yield of 2.14%.

In response to deal news, Siebert Williams Shank analyst Gabriele Sorbara reiterated a buy rating on Devon Energy shares and upgraded the shares price target $55 Prices starting from $50. Based on initial assumptions, Sorbara expects the Coterra acquisition to contribute to discounted cash flow per share, enterprise value to earnings before interest, tax, depreciation and amortization (EV/EBITDA) and free cash flow yield, with net debt to EBITDA leverage slightly reduced.

Sorbara expects the Devon-Coterra combination to be positively received as it will help DVN compete with its peers by increasing its size and scale EOG Resources, Diamondback EnergyAnd Western Oil. The 5-star analyst expects Devon’s increasing competitive position to “ultimately lead to a rerating as the company executes on the financial and operational front.”

Regarding Devon’s upcoming fourth quarter 2025 results, Sorbara expects the company to report stronger operational and financial performance in the quarter. He expects investors to focus on early commentary on the Coterra deal, particularly insights into assets under strategic review and the company’s goal of achieving $1.0 billion in annual pre-tax deal synergies by the end of 2027.

Sorbara is ranked #313 out of more than 12,100 analysts followed by TipRanks. Its ratings were successful 63% of the time, with an average return of 15.1%. See Devon Energy Stock Buybacks on TipRanks.