Dividend Stocks for Income Investors Recommended by Top Wall Street Analysts

The U.S. Federal Reserve delivered a long-awaited rate cut last week and hinted that more reductions are on the horizon. With the economy now moving toward a lower-interest-rate backdrop, many investors are turning to dividend-paying stocks as a way to secure steady income alongside potential capital gains.

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Top Wall Street analysts can help identify which companies stand out. Their expertise, coupled with tools like TipRanks a platform that tracks analyst performance can be a valuable guide for investors looking to add reliable dividend stocks to their portfolios.

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Here are three dividend plays that analysts highlight as attractive opportunities in today’s market.

CVS Health (CVS)

Retail pharmacy giant CVS Health recently declared a quarterly dividend of $0.665 per share, payable November 3, 2025. On an annualized basis, the payout totals $2.66 per share, representing a yield of about 3.6%.

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Following recent discussions with CEO David Joyner and CFO Brian Newman, Morgan Stanley analyst Erin Wright reiterated her buy rating on the stock with an $82 price target. Wright expressed confidence in CVS’s integrated model and its potential to drive a multi-year turnaround. TipRanks’ AI Analyst also rates the stock as “outperform” with a price target of $81.

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Wright noted that Joyner, now one year into his CEO role, remains focused on stabilizing operations and executing the company’s transformation. She emphasized how CVS’s integrated approach spanning retail pharmacies, insurance, and pharmacy benefit management creates value by improving healthcare affordability and accessibility in the U.S.

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Management pointed to progress in several areas, including better performance in Medicare Star Ratings, successful adoption of new pharmacy pricing models, and stronger biosimilar uptake. CVS also highlighted a second consecutive turnaround year for its Aetna health insurance unit and robust results in pharmacy benefits. Meanwhile, technology investments, store optimization, and market share gains continue to strengthen the retail segment.

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On capital deployment, Wright said CVS is prioritizing a return to its target leverage of low 3x. Dividend payouts will remain steady until the company reaches its desired payout ratio of roughly 30%. At that point, CVS plans to restart share repurchases.

Wright ranks No. 244 among over 10,000 analysts tracked by TipRanks, with a track record of 65% profitable ratings and an average return of 13.4%.

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Williams Companies (WMB)

Energy infrastructure provider Williams Companies declared a quarterly dividend of $0.50 per share, up 5.3% from a year ago. That brings the annual payout to $2.00 per share and a yield of 3.4%.

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Stifel analyst Selman Akyol recently spoke with Williams’ CFO John Porter and afterward reiterated a buy rating with a $64 price target. TipRanks’ AI Analyst is more cautious, rating the stock “neutral” with a $63 target.

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Akyol highlighted Williams’ natural gas-focused strategy, noting demand growth from liquefied natural gas (LNG) exports, rising power consumption, and surging data center needs. Williams is targeting 6 gigawatts of data center capacity, with the Socrates project accounting for 400 megawatts. In LNG, the company has 10.5 billion cubic feet per day of export capacity under construction along its Transco pipeline corridor.

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Despite these expansion opportunities, Williams remains committed to maintaining balance sheet strength, keeping leverage between 3.5x and 4.0x. CFO Porter emphasized that the company’s high-quality asset base underpins its ability to pay and grow dividends.

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Dividend growth is expected to remain in the 5%–6% range annually, compared with a 9% compound growth rate in EBITDA. While management aims to eventually align dividend growth with cash flow, tax timing and ongoing investment opportunities create a temporary gap.

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Akyol, ranked No. 354 on TipRanks, has delivered profitable calls 66% of the time with an average return of 10.6%.

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Chord Energy (CHRD)

Independent oil and gas producer Chord Energy offers one of the higher yields in this group. The company paid a $1.30 base dividend in the second quarter, and when including variable payouts, distributed $5.34 per share over the past year — a yield of about 5.1%.

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Chord recently agreed to acquire Williston Basin assets from Exxon Mobil’s XTO Energy and affiliates for $550 million. Siebert Williams Shank analyst Gabriele Sorbara called the deal another smart move that deepens Chord’s core position in the Williston Basin, enhances operational efficiency, and extends its drilling inventory.

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Sorbara expects the acquisition to boost both cash flow and free cash flow (FCF) per share. While leverage will edge slightly higher, the company’s net debt/EBITDA remains comfortably below industry peers. Importantly, Chord reaffirmed its commitment to returning more than 75% of adjusted FCF to shareholders through dividends and buybacks.

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Sorbara reiterated a buy rating with a $140 price target, citing the stock’s attractive valuation and strong capital return framework. TipRanks’ AI Analyst is similarly bullish, rating the stock “outperform” with a $118 target.

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Ranked No. 142 on TipRanks, Sorbara has achieved profitable calls 57% of the time, with an average return of 24.4%.

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With the Fed moving into an easing cycle, dividend stocks are increasingly appealing to investors seeking dependable income and growth potential. CVS Health offers stability and a long-term turnaround story, Williams Companies provides exposure to natural gas and infrastructure growth, and Chord Energy combines strong free cash flow with generous shareholder returns.

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Together, these names highlight how dividend-paying stocks can provide balance in a portfolio as interest rates head lower — offering investors both steady income and the potential for capital appreciation.

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