The US stock market remains volatile due to tensions in the Middle East. Investors seeking a certain level of portfolio stability can choose dividend stocks with attractive upside potential.
Recommendations from top Wall Street analysts can help investors find stocks that pay regular dividends and have the ability to generate long-term capital appreciation. The insights of these experts aid investors in their search as their valuations are supported by in-depth analysis of macro and micro factors.
Here are three dividend stocks highlighted by Wall Street’s top pros, tracked by TipRanks, a platform that ranks analysts based on past performance.
Diamondback energy
Independent oil and natural gas company Diamondback energy (FANG) is this week’s first dividend pick. The Company is focused on exploring unconventional onshore oil and natural gas reserves in the Permian Basin of West Texas. The company recently paid a base dividend of $1.05 per share. FANG offers a dividend yield of around 2%.
Recently, Goldman Sachs analyst Neil Mehta discussed the impact of ongoing commodity volatility on exploration and production companies. Assuming Brent and WTI at $75 and $70 per barrel respectively, and Henry Hub natural gas at $3.75/MMBtu as a normalized price average for 2027-2030, the analyst is bullish on the outlook Ovintive (OVV), Permian resources (PR), Diamondback and FANG’s subsidiary Viper energy (VNOM). He expects these stocks to generate an average total return of 22%.
Notably, Mehta reiterated his Buy rating on FANG stock with a price target of $216. The five-star analyst continues to think FANG is a compelling choice as the stock is estimated to trade at an attractive average free cash flow yield of 12% in 2027 and 2028, compared to the 10% average for major oil exploration and production.
The analyst is confident that Diamondback can deliver better-than-expected performance during times of high commodity prices, supported by the company’s low-cost structure and lower capital intensity than its peers.
“FANG continued to reiterate the flexibility embedded in the company’s Permian operations and the continued progress in further cost reduction of the business,” Mehta said.
Mehta is ranked #452 among more than 12,100 analysts tracked by TipRanks. His reviews were successful 62% of the time and delivered an average return of 11.4%. See Diamondback energy stats on TipRanks.
Crescent energy
Another energy game on this week’s list is Crescent energy (CRGY), an oil and gas company with operations focused in the Eagle Ford, Permian and Uinta basins. In addition, the Company owns mineral and royalty interests in leading U.S. oil and natural gas basins operated primarily by large, well-capitalized companies. With a quarterly dividend of 12 cents per share, CRGY stock offers a dividend yield of 3.5%.
After a period of restrictions and an “unrated” rating, JPMorgan analyst Zach Parham upgraded Crescent Energy to “Buy” with a $19 price target. JPMorgan previously had a Hold rating on CRGY shares with a $14 price target.
The top-rated analyst highlighted that Crescent is a diversified exploration and production company with a solid track record of creating value through acquisitions and divestitures. Parham is particularly impressed with Crescent’s improved capital efficiency and consolidation efforts at Eagle Ford, with the company now becoming the third-largest oil producer in the region.
The analyst noted that Crescent added $3.1 billion of debt to its balance sheet with its $3.1 billion acquisition of Vital Energy, which helped the company move into the Permian, a much more competitive basin for acquisitions and diversification. It’s worth noting that before the Vital deal closed, CRGY sold $800 million in assets, reducing pro forma net debt to about $4.8 billion. While Crescent’s near-term leverage remains elevated relative to its peers, Parham expects the company to use its free cash flow to reduce its debt burden following the increase in strip prices due to the U.S.-Iran conflict.
Parham also noted that Crescent plans to reduce production of Vital, which will help extend the life of its Permian inventory, addressing a major investor concern. “Over the long term, we are confident that CRGY will be able to manage its portfolio of E&P assets to create value for shareholders,” the analyst concluded.
Parham is ranked #1,067 among more than 12,100 analysts tracked by TipRanks. Its ratings were successful 66% of the time and delivered an average return of 10.2%. See Crescent Energy ownership structure on TipRanks.
Darden Restaurants
Finally, let’s take a look Darden Restaurants (DRI), which operates several popular chains including Olive Garden, LongHorn Steakhouse and Yard House. The company recently reported its fiscal third quarter results and provided a solid outlook. Darden declared a quarterly dividend of $1.50 per share, payable on May 1. With an annual dividend of $6 per share, DRI stock offers a dividend yield of approximately 3.1%.
Following the third-quarter earnings release, Mizuho analyst Nick Setyan reiterated his Buy rating on Darden shares with a price target of $235. The analyst said the company delivered solid fiscal third-quarter results despite higher inflation and higher general and administrative expenses.
Setyan noted that the quarterly performance was driven by strong same-store sales growth, underscoring short- and medium-term visibility due to Darden’s size and diversity. Additionally, LongHorn Steakhouse’s strong same-store sales growth offset Olive Garden’s (OG) weak performance due to the lack of price promotions for three weeks.
The five-star analyst added that the company’s better-than-expected fourth-quarter outlook is supported by the strength of comparable sales trends in March. Setyan is confident that prices will adjust for inflation in the fiscal fourth quarter, particularly at LongHorn Steakhouse, providing more clarity on same-store sales growth and margin expectations in fiscal 2027.
“With OG beginning the cycle of successful tougher comparisons, inflation cooling relative to F26, pricing accelerating slightly and unit growth rising above 3%, the visibility of DRI’s longer-term EBITDA and EPS growth algorithm is at an all-time high,” said Setyan.
Setyan is ranked #729 among more than 12,100 analysts tracked by TipRanks. His reviews were successful 53% of the time and delivered an average return of 10.6%. View Darden Restaurants’ financial data on TipRanks.