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Dividend Stocks With Stable Returns Are Recommended by Top Wall Street Analysts

May 18, 2025
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In uncertain markets, investors often seek the reliability of dividend-paying stocks to cushion their portfolios with steady income while also offering growth potential. While a recent temporary trade agreement between the U.S. and China — featuring a 90-day reduction in tariffs — brought some short-term optimism, concerns about ongoing trade tensions under the Trump administration continue to loom.

Against this backdrop, many investors are turning to top-rated Wall Street analysts for guidance on dependable dividend stocks backed by strong fundamentals and solid cash flow.

Based on data from TipRanks, a platform that evaluates analysts based on their historical performance, here are three dividend stocks currently favored by leading analysts.

Chord Energy (CHRD)
Chord Energy is a U.S.-based independent oil and gas exploration company, primarily operating in the Williston Basin. The company recently released robust first-quarter 2025 results, which it attributed to stronger-than-expected well performance, cost discipline, and operational uptime.

In a shareholder-friendly move, Chord returned its entire adjusted free cash flow to shareholders through share repurchases and maintained a base dividend of $1.30 per share. Over the past 12 months, its total dividend payouts represent a yield of 6.8%.

Gabriele Sorbara, an analyst with Siebert Williams Shank, considers Chord a top pick. He reiterated a Buy rating on the stock and raised his price target from $121 to $125. Sorbara acknowledged that energy stocks are vulnerable to fluctuations in commodity prices but argued that Chord stands out due to its low breakeven costs, strong free cash flow, and attractive assets. He added that the company also cut its 2025 capital expenditure by $30 million without reducing production expectations, thanks to improved efficiencies.

Sorbara also emphasized Chord’s flexible strategy, allowing the company to reduce activity if market conditions worsen. Importantly, Chord reaffirmed its commitment to return at least 75% of its free cash flow to shareholders through dividends and buybacks. He praised Chord’s low financial leverage (0.3x at the end of Q1) and solid free cash flow as a foundation for strong shareholder returns.

Sorbara is ranked No. 143 out of over 9,500 analysts on TipRanks, with a 55% success rate and an average return of 20.4%.

Chevron (CVX)
Chevron, a major integrated oil and gas company, also recently reported its Q1 2025 earnings. While lower oil prices negatively impacted results, Chevron continued its commitment to shareholder returns. The company distributed $6.9 billion in Q1 through $3.9 billion in share repurchases and $3 billion in dividends. The current quarterly dividend is $1.71 per share, or $6.84 annually, resulting in a 4.8% dividend yield.

Goldman Sachs analyst Neil Mehta maintained a Buy rating on Chevron, slightly adjusting his price target to $174 from $176. Despite the uncertain macroeconomic environment and a slower pace of stock buybacks, Mehta still sees long-term value in the stock, driven in part by its near-5% dividend yield.

Mehta noted several key growth areas, including the Tengiz project, which hit nameplate capacity ahead of schedule. Chevron’s management expects this project to continue generating strong cash flows. Additionally, Chevron is optimistic about its Gulf of Mexico operations and aims to boost production there to 300,000 barrels of oil equivalent per day by 2026. In the Permian Basin, Chevron achieved a 12% production increase in Q1, supported by improved efficiency.

Mehta ranks No. 535 on TipRanks, with a 59% success rate and an average return of 8.8%.

EOG Resources (EOG)
The third stock on the list is EOG Resources, a U.S.-based energy company with reserves in the U.S. and Trinidad. The company recently beat market expectations with its Q1 2025 earnings and returned $1.3 billion to shareholders — $538 million in dividends and $788 million via buybacks. EOG declared a quarterly dividend of $0.975 per share, or $3.90 annually, yielding 3.4%.

RBC Capital’s Scott Hanold maintained a Buy rating on EOG and set a price target of $145. He noted that EOG trimmed its capital budget by 3% and reduced oil production by 0.6% due to macroeconomic uncertainty. As a result, Hanold raised his free cash flow estimates by 6% to 7%.

Hanold pointed out that EOG has the flexibility to lower activity in certain areas without compromising operational efficiency. For 2025, the company now plans 550 wells in key onshore U.S. regions, down by 30 from the initial guidance.

In Q1, EOG again returned over 100% of its free cash flow to shareholders. Hanold expects this practice to continue, backed by the company’s robust cash position — approximately $7 billion — and ongoing balance sheet improvements. He believes total returns could surpass $1 billion in Q2 2025, representing about 150% of the company’s free cash flow for that quarter.

Hanold views EOG as well-positioned amid oil price volatility, supported by its strong balance sheet, expanding natural gas output, and cost efficiency. He ranks No. 11 on TipRanks, with a 68% success rate and an average return of 30%.

Conclusion
In a market environment clouded by global uncertainty and trade concerns, dividend-paying energy stocks like Chord Energy, Chevron, and EOG Resources are drawing attention from analysts and investors alike.

Each company offers a blend of solid yields, disciplined capital management, and the flexibility to navigate challenging conditions — making them compelling picks for income-seeking investors.

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Eric Ng
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Eric Ng
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John Liu
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Bryan Curtis
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Adan Harris
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