These Three Dividend Stocks Are Expected to Deliver Stable Returns According to Wall Street Analysts

Investors worried about the current economic uncertainty may benefit from adding reliable sources of income to their portfolios, particularly through dividend-paying stocks. These equities can offer consistent payouts even when market conditions are tough. Wall Street analysts have identified several such stocks with strong fundamentals and stable yields. Based on expert recommendations sourced from TipRanks—a platform that tracks and ranks analyst performance—three standout dividend stocks are worth considering.

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AT&T (T)

AT&T, the U.S. telecommunications heavyweight, recently posted a solid first-quarter performance, buoyed by growth in postpaid phone and fiber broadband subscriptions. The company reaffirmed its full-year financial outlook and announced plans to initiate a share repurchase program in the second quarter. This move follows progress in reducing its debt load, now within its target ratio of 2.5 times net debt to adjusted EBITDA.

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AT&T currently pays a quarterly dividend of $0.2775 per share, translating to an annual payout of $1.11 per share and a dividend yield of approximately 4%.

Following the earnings announcement, RBC Capital analyst Jonathan Atkin raised his price target on AT&T from $28 to $30 while maintaining a “buy” rating. He noted that the company’s revenue exceeded expectations, driven by strong results across both wireless and wireline segments. Atkin pointed out that despite a temporary dip in activity during January, AT&T added a robust 324,000 postpaid phone subscribers in the quarter and achieved a 13% increase in gross additions, successfully countering higher churn rates.

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He emphasized management’s confidence in its execution, as reflected in their commitment to returning capital to shareholders via buybacks. Atkin is ranked 85th out of more than 9,400 analysts on TipRanks, with a 69% success rate and an average return of 11.3% per rating.

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Philip Morris International (PM)

Philip Morris International, a global tobacco company transitioning to smoke-free products, also reported impressive Q1 results. The company continues to shift away from traditional cigarettes, with increasing demand for alternatives like its Iqos device and nicotine pouch brand Zyn.

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Philip Morris pays a quarterly dividend of $1.35 per share, which amounts to an annual dividend of $5.40 per share. This gives the stock a yield of nearly 3.2%.

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Stifel analyst Matthew Smith responded positively to the earnings report, boosting his price target from $168 to $186 and reaffirming his “buy” rating. He credited the company’s performance to three main factors: a greater share of revenue from smoke-free products, pricing strength, and volume growth. These helped generate a 10% year-over-year increase in organic revenue, a 340-basis-point improvement in gross margins, and a 200-basis-point expansion in operating margins.

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Smith believes these factors will support steady growth through 2025 and beyond. Smoke-free products now contribute over 40% of Philip Morris’s total revenue and gross profit. He also highlighted strong momentum for Zyn, which saw a jump in U.S. sales thanks to earlier-than-expected improvements in supply chain capacity. Smith now projects 824 million cans of Zyn to be sold in 2025, up 42% from previous estimates. That number could rise even further, as production capacity is expected to hit 900 million cans this year, allowing for stronger performance in the latter half of 2025.

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Smith holds the 642nd spot among TipRanks analysts, with a 64% success rate and an average return of 15%.

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Texas Instruments (TXN)

Rounding out the list is Texas Instruments, a semiconductor firm known for its analog and embedded processing chips used in a wide array of applications. The company posted better-than-expected earnings and revenue in Q1, defying concerns about tariff-related disruptions. Guidance for the June quarter was also stronger than anticipated.

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Texas Instruments pays a quarterly dividend of $1.36 per share, totaling $5.44 annually. This represents a dividend yield of about 3.3%.

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Following the positive earnings release, Evercore analyst Mark Lipacis reiterated a “buy” rating and maintained his price target of $248. He praised the company’s strong showing in Q1 and suggested that TXN is one of Evercore’s top picks in the analog chip space.

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While some skeptics believe the upbeat results stemmed from pre-tariff inventory build-ups, Lipacis disagrees. His research suggests that supply chain inventories have been drawn down significantly and are now below normal levels. This, he believes, sets up TXN for future upside surprises as demand returns.

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Lipacis expects Texas Instruments to lead the pack in what he calls the “upward revision cycle,” particularly since the company was among the first large-cap analog firms to address inventory corrections. He also projects that the firm’s price-to-earnings multiple will stay elevated as it moves beyond its capital expenditure peak. This, in turn, should drive free cash flow per share from a 12-month low of $1 to more than $10 by 2027.

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Lipacis ranks 69th among analysts tracked by TipRanks, with a 58% success rate and an average return of 20.4%.

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In summary, AT&T, Philip Morris, and Texas Instruments offer attractive dividend yields backed by solid business performance and positive analyst sentiment. These stocks may appeal to investors seeking both income and stability amid ongoing market uncertainty.

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