Major U.S. stock indexes are doing well in 2024, driven by buzz about artificial intelligence and interest rate cuts. However, macro uncertainty may affect investor sentiment in 2025.
Wall Street’s top analysts can help investors pick attractive dividend stocks that offer consistent payouts backed by strong fundamentals.
these are three dividend-paying stockshighlighted as Wall Street’s Top Professionals TipRanks is a platform that ranks analysts based on their past performance.
Ares Capital
Let’s start with Ares Capital (Asia Research Center), a specialist financial provider providing financing solutions to private middle market companies. ARCC stock pays a quarterly dividend of 48 cents per share, giving it a yield of 8.7%.
In a research note on business development companies (BDCs) outlook for 2025, RBC Capital analysts Kenneth Lee Reiterates a Buy rating on ARCC with a $23 price target and calls the stock RBC’s favorite BDC name in 2025.
“ARCC is a leader in the BDC space, benefiting from scale, the Ares direct lending platform’s strong origination engine covering all MM segments, and approximately 20 years of experience and solid performance in the space,” Lee said.
The analyst emphasized that ARCC’s ability to provide clients with flexible capital through a variety of financing solutions sets it apart from its peers. Lee also pointed to other advantages, including the company’s impressive history of managing risk through the cycle, access to Ares Credit Group’s resources and scale advantages as it is the largest publicly traded BDC by assets.
Lee also highlighted ARCC’s dividend, which is supported by the company’s core earnings per share and underlying net realized earnings.
Lee ranks No. 23 among more than 9,200 analysts tracked by TipRanks. His ratings were profitable 71% of the time, with an average return of 18.1%. look Ares Capital Ownership Structure On prompt ranking.
ConocoPhillips
We moved to ConocoPhillips (COP), an oil and natural gas exploration and production company. In October, the company reported better-than-expected third-quarter earnings and raised its full-year output guidance to reflect the impact of operating efficiencies.
In addition, ConocoPhillips raised its quarterly dividend by 34% to 78 cents per share and increased its existing stock repurchase authorization by up to $20 billion. Based on an annualized dividend of $3.12 per share, COP stock has a dividend yield of 3%.
In a research note on U.S. oil and gas prospects, Mizuho analysts Nitin Kumar ConocoPhillips’ stock rating was upgraded to “buy” from “hold” and the price target was raised to $134 from $132. “COP offers an enviable combination of long-term inventory, a fortress-like balance sheet and peer-leading cash returns,” Kumar said.
The analyst noted that COP shares have pulled back since the Marathon Oil acquisition was announced, suggesting that modest inventory dilution from the deal has been priced into the stock. In addition, Kumar noted that the company is confident of achieving transaction synergies that are significantly higher than expected. Specifically, ConocoPhillips expects to generate approximately $1 billion in annual synergies, double its original target of $500 million.
Kumar also highlighted that COP expects capital expenditures to be less than $13 billion in 2025, which could translate into additional free cash flow. Analysts believe that with its growing LNG business and strong commercial marketing operations, the company is well-positioned to benefit from growing global LNG demand and international pricing.
Kumar is ranked No. 336 among more than 9,200 analysts tracked by TipRanks. His ratings were profitable 58% of the time, with an average return of 12.1%. look ConocoPhillips Insider Trading Activities On prompt ranking.
Darden Restaurant
Finally let’s take a look Darden Restaurant (direct reductase), a restaurant company that owns popular brands including Olive Garden, LongHorn Steakhouse, Yard House and Cheddar’s Scratch Kitchen. The company recently announced second-quarter fiscal 2025 results and raised its annual sales guidance.
In addition to its fiscal 2025 second quarter results, the company Declared quarterly dividend of $1.40 per sharewill be paid on February 3rd.
Based on the results, BTIG analysts Peter Saleh reiterated a buy rating on DRI stock and raised its price target to $205 from $195, saying “management has multiple levers to achieve full-year guidance.” He believes that while the results are encouraging, the impact of hurricanes and the Thanksgiving calendar change masked some favorable sales trends.
The analyst highlighted the strong performance of the LongHorn Steakhouse and Olive Garden chains, noting that increased visits from lower- and middle-income consumers reflect a significant shift in trends observed in recent quarters.
Among other positives, Saleh pointed to the faster-than-expected rollout of Uber Eats delivery and a narrowing of the value gap compared to fast-food restaurants as Darden’s pricing was constrained. Analysts expect all these positive factors to drive strong results in the second half of fiscal 2025.
Saleh is ranked No. 366 among more than 9,200 analysts tracked by TipRanks. His ratings were profitable 62% of the time, with an average return of 11.8%. look Darden Restaurants Hedge Fund Event On prompt ranking.
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