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The US stock market remains volatile due to concerns about the valuations of technology and artificial intelligence stocks and an uncertain macroeconomic environment. Given this scenario, investors who want to earn passive income can include some dividend stocks in their portfolio.
At the same time, investors may find it difficult to choose the right stock from the vast universe of dividend-paying companies. In this context, recommendations from top Wall Street analysts can help investors select attractive dividend stocks with strong fundamentals. These experts assign their ratings after an in-depth analysis of a company's financials and growth potential.
Here are three dividend stocks highlighted by Wall Street's top pros, tracked by TipRanks, a platform that ranks analysts based on their past performance.
Diamondback energy
First on this week's list is Diamondback energy (CATCH), an independent energy company focused on onshore oil and natural gas reserves in the Permian Basin of West Texas. The company recently reported better-than-expected third-quarter results. Diamondback returned $892 million of capital to shareholders through share repurchases and dividends in the third quarter (50% of adjusted free cash flow). A base cash dividend of $1.00 per share was declared for the period, payable on November 20. With an annual dividend of $4 per share, FANG offers a yield of 2.8%.
In response to the third quarter release, RBC Capital analyst Scott Hanold reiterated his Buy rating on Diamondback shares with a price forecast of $173. Interestingly, TipRanks AI analyst is also bullish on FANG stock with an “Outperform” rating and a $156 price target.
Hanold continues to view Diamondback as a core long-term energy position as it features one of the highest core inventory durations in the Permian Basin and lowest breakevens of $37 to $38 per barrel (WTI, unhedged and including capitalized costs).
“FANG continues to be among the most resilient E&P companies with world-class operating, capital and production performance,” said Hanold.
The 5-star analyst expects Diamondback to benefit from the renewed prospects for gas-fired energy in the Permian Basin, supported by its strong presence and natural gas exposure. Hanold noted that FANG is part of the Competitive Power Ventures project, where the company has agreed to supply 50 million cubic feet per day to a 1,350-megawatt combined-cycle gas turbine. He added that management is optimistic about securing additional power/data center contracts.
Hanold ranks No. 69 among more than 10,000 analysts tracked by TipRanks. Its valuations were profitable 64% of the time and delivered an average return of 26.2%.
Permian resources
Hanold is also optimistic about another dividend-paying energy company: Permian resources (PR). The independent oil and gas company posted positive earnings in the third quarter, citing its dominance in the Delaware Basin. Permian declared a base dividend of 15 cents per share for the fourth quarter, payable on December 31. With an annualized dividend of 60 cents per share, PR stock offers a yield of 4.5%.
Impressed by the results, Hanold reiterated his Buy rating on Permian Resources shares with a price target of $18. TipRanks AI analyst has an “Outperform” rating on PR stocks with a $14.50 price target.
The highly rated analyst explained that continued “competent operational and financial performance has become a hallmark” for Permian and that he believes the company can continue to do so in the coming years. Hanold highlighted PR's robust operating performance, which reflected solid growth in organic production with no increase in expenses.
Hanold noted that the implied fourth-quarter oil forecast is 2% to 3% higher than the previous consensus forecast. Accordingly, it now expects 188 Mb/d (oil) for the fourth quarter, which is 3% above its previous estimate. The analyst added that management appears confident of maintaining capital spending at current levels while generating solid free cash flow, with the dividend payment even supported at around $40 per barrel.
Additionally, Hanold sees the possibility of increasing Permian's fixed dividend in early 2026. He also expects the company to engage in opportunistic share repurchases. The analyst expects Permian to use remaining free cash flow to further strengthen an already solid balance sheet (0.8x leverage ratio).
Duke Energy
Finally, let's take a look at Duke Energy (ALL), an energy holding company that produces and distributes electricity and natural gas. The company recently reported better-than-expected adjusted earnings per share for the third quarter, citing the introduction of new tariffs and add-ons as well as increased retail sales.
Last month, Duke Energy declared a quarterly cash dividend of $1.065 per share, payable on Dec. 16. With an annual dividend of $4.26 per share, DUK stock offers a yield of 3.4%.
Given its third-quarter performance, Evercore analyst Nicholas Amicucci reiterated a Buy rating on DUK stock with a price target of $143. In comparison, TipRanks' AI analyst has a “neutral” rating on Duke Energy stock with a price target of $135.
Amicucci pointed to Duke Energy's strong third-quarter results and a first look at its updated capital plan, which is expected to be announced in February 2026. Specifically, the company mentioned a $95 billion to $105 billion plan for 2026 to 2030 with an equity funding target of 30% to 50%.
In addition, the 5-star analyst emphasized that management sees continued momentum next year and expects to convert economic opportunities for large loads into concrete projects with signed energy service contracts. Amicucci added that Duke Energy is well-positioned to add at least 8.5 gigawatts of new dispatchable generation capacity across its service areas, including approximately 1 GW of upgrades and 7.5 GW of new natural gas facilities.
Overall, Amicucci remains optimistic about Duke's future growth, driven by its premium service lines, solid pipeline of new projects and the fact that approximately 90% of its electrical capital expenditures are eligible for efficient recovery mechanisms, “thereby seemingly mitigating any regulatory delays.”
Amicucci is ranked #693 among more than 10,000 analysts tracked by TipRanks. His reviews were successful 79% of the time and delivered an average return of 48.1%.