Wall Street analysts are confident about these 3 dividend-paying stocks

Towards 2026, investors’ focus may shift from fixed income instruments to attractive dividend stocks, given lower interest rates.

Choosing the right names from a vast universe of dividend-paying companies is a challenge. Following the stock picks of top Wall Street analysts can help investors make the right choices; because these experts determine their ratings after thoroughly analyzing a company’s fundamentals.

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.

Oil and gas giant Strip (CVX) is this week’s first dividend pick. Company returns $6 billion in cash to shareholders third quarter through dividends of $3.4 billion and share buybacks of $2.6 billion. With a quarterly dividend of $1.71 per share (annual dividend of $6.84 per share), Chevron offers a yield of approximately 4.5%.

Following discussions with Chevron’s management, Piper Sandler analyst Ryan Todd reiterated his buy rating on CVX shares. $178 price target. Interestingly, TipRanks’ AI Analyst also thinks the energy company is bullish, with an “outperform” rating and a $164 price target.

Todd noted that the ongoing negative crude oil environment and positive refining business scenario are impacting Chevron’s performance, but his discussions with management reflect the company’s solid position.

The analyst argues that Chevron’s capital efficiency is underappreciated. Specifically, the company’s upward capital expenditure/Boe (barrel of oil equivalent) Produced is 29% below the peer average. He added that Chevron’s 10% annual free cash flow (FCF) annual growth outlook appears conservative, given reduced capex and operating expenses, the unrealized benefits of artificial intelligence (AI), and a better-than-feared resource base.

Additionally, Todd noted that “as investors continue to worry about TCO [Tengizchevroil joint venture] Contract extensions, ongoing resource depth questions beyond 2030 are misguided.” In this regard, the analyst noted that in addition to the projects in Chevron’s official plan, management is optimistic about additional opportunities presented by improved global reach (especially in the Middle East), increase and expansion in exploration activities and technology-focused prospects.

Todd is ranked #868 out of more than 10,200 analysts tracked by TipRanks. Their ratings were profitable 58% of the time, with an average return of 8.5%. See Chevron Ownership Structure on TipRanks.

restaurant company Darden Restaurants (DRI) has a portfolio of brands including Olive Garden, LongHorn Steakhouse and Yard House. It recently announced a quarterly dividend of $1.50 per share, payable on February 2, 2026. DRI offers a 3.2% yield with an annual dividend of $6 per share.

Following the company’s mixed results for the second quarter of fiscal 2026, BTIG analyst Peter Saleh reiterated his buy rating on Darden shares. price target $225. In comparison, TipRanks’ AI Analyst has a $218 price target with an “outperform” rating.

Darden had a mixed but “mostly positive” quarter, with better-than-expected comparable sales driven by increased traffic across the company’s major brands, Saleh said.

“The strategy of under-inflation pricing, pivoting to delivery and offering a desirable menu resonated with guests and led to greater industry performance in a quarter,” Saleh said.

The five-star analyst emphasized that higher beef prices continue to have a negative impact, weighing on restaurant margins and earnings per share (EPS) this quarter. However, Saleh is optimistic that Darden will meet its goal as beef costs have peaked, labor cost pressures have eased and management has some reliance on price increases to offset commodity costs.

Overall, Saleh continues to be impressed by Darden’s sales momentum, and earnings are expected to grow going forward, though not yet at the same pace.

Saleh is ranked #641 out of more than 10,200 analysts tracked by TipRanks. Their ratings were profitable 61% of the time, with an average return of 10.5%. See Darden Restaurant Statistics on TipRanks.

This week’s third dividend pick Capital of Ares (ARCC) is a private finance company that provides direct loans and other investments to private middle market companies. The company announced a dividend of 48 cents per share, payable on December 30, 2025. With an annual dividend of $1.92 per share, ARCC shares offer a 9.5% yield.

In his latest research note on business development companies (BDCs), RBC Capital analyst Kenneth Lee called Ares Capital one of his favorite BDC names for 2026 and reaffirmed his buy rating: price target $23. TipRanks’ AI Analyst gives ARCC shares an “outperform” rating with a $24 price target.

Lee remains bullish on Ares Capital, although he is less constructive on the BDC space heading into 2026 due to a possible decline in net interest income (NII) and return on equity (ROE) from lower base rates. In particular, he expressed confidence in management’s ability to maintain dividends at current levels despite expectations for low base rates.

Lee cited ARCC’s dominant position in the BDC market, its broad scale and strong roots in the Ares direct lending platform as key strengths. He also touched upon Ares Capital’s more than 20 years of experience.

“In our view, ARCC’s dividends are well supported by the company’s underlying earnings per share generation and potential net realized earnings,” Lee said in support of his bullish stance.

Lee is ranked #341 out of more than 10,200 analysts tracked by TipRanks. It did well in the ratings 66% of the time and delivered an average return of 11.5%. Check out the Ares Capital Insider Trading Event on TipRanks.