Three Dividend Stocks for Stable Returns Recommended by Top Wall Street Analysts

Concerns over a possible government shutdown, a softening job market, and stretched stock valuations have dampened investor confidence. In times like these, when uncertainty clouds market outlooks, investors seeking dependable income might find dividend-paying stocks an appealing choice for stability and long-term growth.

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Top-rated Wall Street analysts have spotlighted several dividend stocks with strong fundamentals that can sustain consistent payouts. Using insights from TipRanks a platform that ranks analysts based on their track records here are three dividend-paying companies favored by leading market experts.

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Brookfield Infrastructure Partners (BIP)

First on the list is Brookfield Infrastructure Partners, a global infrastructure powerhouse with diversified, long-duration assets spanning utilities, transport, midstream, and data infrastructure. On September 29, BIP paid a quarterly dividend of $0.43 per unit, marking a 6% year-over-year increase. Based on an annualized dividend of $1.72 per unit, the stock currently yields around 5.2%.

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Following the company’s recent Investor Day, BMO Capital analyst Devin Dodge reaffirmed his Buy rating on BIP with a $42 price target. The 5-star analyst noted that management presentations showcased strong organic growth across the company’s portfolio momentum he expects to strengthen in the coming quarters.

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Dodge emphasized that BIP’s portfolio of high-growth platforms continues to expand, with significant opportunities across its sectors, especially in digital infrastructure. With hyperscalers projected to boost capital expenditures by 50% this year, he sees robust medium-term growth potential for BIP’s data center business.

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The analyst also believes BIP’s funds from operations per unit (FFO/unit) are nearing an inflection point. Despite facing foreign exchange headwinds and higher interest rates over the past five years, the company has grown FFO/unit by about 10% annually. Dodge expects these pressures to ease soon, paving the way for stronger FFO growth.

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“As FFO/unit accelerates, we see clear upside for both distribution growth and valuation,” Dodge said. TipRanks’ AI Analyst currently maintains a neutral view with a $33 price target on the stock.

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Dodge ranks No. 377 out of more than 10,000 analysts tracked by TipRanks, with a 73% success rate and an average return of 13.2%.

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Ares Capital (ARCC)

Next is Ares Capital, a specialty finance firm providing direct loans and investments to private mid-market companies. Ares currently pays a quarterly dividend of $0.48 per share, or $1.92 annually, translating to a 9.4% dividend yield one of the most attractive in its sector.

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RBC Capital analyst Kenneth Lee recently reiterated a Buy rating on ARCC with a $24 price target, highlighting its resilience and consistent performance. TipRanks’ AI Analyst is also bullish, assigning an Outperform rating with a $25 target.

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Lee, a 5-star analyst, favors Ares Capital alongside Blackstone Secured Lending Fund (BXSL) and Sixth Street Specialty Lending (TSLX), citing their strong risk management through various market cycles. “ARCC has a proven history of managing risks successfully across economic environments,” Lee said.

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He underscored that Ares Capital’s scale and access to the broader Ares global credit platform give it a competitive edge. Lee expects the company to continue generating above-average returns on equity, supported by its seasoned management team.

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He also emphasized that ARCC’s dividends are well-covered by its core earnings and potential net realized gains, reinforcing the sustainability of its payouts.

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Lee ranks No. 59 among all analysts on TipRanks, with a 72% success rate and an average return of 16.7%.

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ONE Gas (OGS)

Rounding out the list is ONE Gas, a fully regulated natural gas utility serving over 2.3 million customers across Kansas, Oklahoma, and Texas. The company pays a quarterly dividend of $0.67 per share, or $2.68 annually, representing a 3.3% yield.

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Recently, Mizuho analyst Gabe Moreen upgraded OGS to Buy from Hold and raised his price target to $86 from $77, citing multiple catalysts including Texas HB 4384 legislation which allows utilities to recover specific infrastructure-related costs and an improving interest rate environment. TipRanks’ AI Analyst currently rates the stock Neutral with an $81 target.

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Moreen estimates that HB 4384 could contribute about $0.18 in incremental EPS in fiscal 2026, with this benefit expected to grow as Texas capital spending increases. Since Texas represents roughly 32% of OGS’s rate base, he believes the legislation will help maintain earnings growth at the upper end of the company’s 4–6% guidance range.

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He added that elevated short-term rates forced OGS to revise its forecasts for 2023 and 2024, but anticipated Federal Reserve rate cuts should ease financing costs and improve profitability.

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Moreen also highlighted promising long-term growth opportunities tied to rising natural gas demand from data centers and advanced manufacturing. Combined with a healthy balance sheet and expanding customer base, he sees OGS as an undervalued utility poised for a rebound toward its historical premium valuation.

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Moreen ranks No. 142 among more than 10,000 analysts on TipRanks, with a 75% success rate and an average return of 13.3%.

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As market volatility persists, dividend-paying stocks like Brookfield Infrastructure Partners, Ares Capital, and ONE Gas offer investors a balanced mix of income, stability, and growth potential qualities that can help weather uncertain times while capturing long-term value.

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