The IBM logo at the headquarters of IBM Germany in the Highlight Towers in Parkstadt Schwabing in Munich (Bavaria).
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During times of geopolitical tensions and macroeconomic uncertainty, dividend stocks can provide investors with stable portfolio returns.
In this context, recommendations from top Wall Street analysts can help investors select attractive stocks of companies that generate solid cash flows to support continuous dividend payments.
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.
Permian resources
We’re starting this week with Permian resources (PR), an independent oil and natural gas company with assets in the Permian Basin and a concentration in the core of the Delaware Basin. With a base dividend of 15 cents per share (an annualized dividend of 60 cents per share), PR stock offers a dividend yield of 4.3%.
In a recent research report, Siebert Williams analyst Gabriele Sorbara reiterated her Buy rating on Permian Resources shares with a price forecast of $19, saying: “Extending operational execution track record with a near-term focus on Q4 2025, where the implied mean oil production forecast is at ~187.4 Mbbls/d with capex of $484.6 million lies.” TipRanks AI analyst also has an “Outperform” rating on PR stocks with a $16 price target.
Sorbara noted that Permian is sticking to its plan to reward shareholders through a quarterly dividend of 15 cents per share and opportunistic stock repurchases. Notably, the company has a $1 billion repurchase authorization with no end date. The five-star analyst expects Permian to increase its dividend next year and beyond.
Meanwhile, Sorbara expects the company to release its 2026 outlook in February once it finalizes a plan that fits the background of raw material prices and service costs. The analyst expects Permian to benefit from several positives in 2026, including lower drilling costs, an increased production base in the second half of last year, stable operating strength and better pricing from recent deals. Sorbara expects these tailwinds to increase efficiency in production, capital expenditures and free cash flow.
Additionally, Sorbara noted Permian’s efforts to further strengthen its balance sheet and target a long-term net debt/EBITDA (earnings before interest, taxes, depreciation and amortization) target of 0.5x-1.0x. Additionally, the cash balance of $500 million to $1 billion gives the company the flexibility to implement capital allocation options such as acquisitions, buybacks and deleveraging, even with West Texas Intermediate crude oil prices in the $35 to $40 per barrel range.
Sorbara is ranked #522 among more than 10,400 analysts tracked by TipRanks. His reviews were successful 52% of the time and delivered an average return of 15.4%. See Perm resources ownership structure on TipRanks.
International business machines
Tech giant IBM (IBM) is this week’s second dividend pick. The company paid $1.6 billion in dividends to shareholders in the third quarter of 2025. With a quarterly dividend of $1.68 per share (annualized dividend of $6.72 per share), IBM offers a yield of 2.2%.
Recently, Jefferies analyst Brent Thill upgraded IBM shares from Hold to Buy and raised the price target from $300 to $360. He pointed to “a clearer path to software acceleration, improving fundamentals and a valuation that does not yet fully reflect the software premium.” TipRanks AI analyst rates IBM stock “Outperform” and a price target of $354.
The five-star analyst pointed to management’s brighter outlook in key growth areas, with technological change and rapid adoption of AI driving broad demand. Thill noted that improving regulatory and tax policies, solid organic software growth, synergies from recent mergers and acquisitions, and key successes in generative AI consulting also support management’s optimism.
In particular, the synergies from the HashiCorp acquisition and the upcoming Confluent (CFLT) deal are expected to result in accelerated software growth in 2026, compared to nearly 10% in 2025. Thill also expects IBM to achieve steadily increasing margins through a growing software mix and operational discipline (estimated at a pre-tax margin of 21% in 2027 compared to 19% in 2027). 2025).
With IBM trading at a 2027 price-to-earnings ratio of 26x, compared to the 35x average for large-cap software peers, Thill finds the stock’s valuation attractive and contends it still has upside potential as expectations of renewed software acceleration are not priced in.
Thill is ranked #539 among more than 10,400 analysts tracked by TipRanks. His reviews were successful 61% of the time and delivered an average return of 11%. See IBM Statistics on TipRanks.
Kinetics Holdings
Kinetics Holdings (KNTK) is a midstream energy company focused on the Delaware Basin in the Permian. With a quarterly cash dividend of 78 cents per share (an annual dividend of $3.12 per share), KNTK stock offers a yield of 8.5%.
On January 5, Raymond James analyst Justin Jenkins upgraded Kinetik stock to “buy” from “hold” and gave a price target of $46. In comparison, TipRanks’ AI analyst has a “neutral” rating with a $34 price target.
“The stock is down approximately 38% year-over-year and the magnitude of this setback is a key part of our thesis as investor focus shifts to 2026-27 where operational visibility improves while valuation continues to reflect significant skepticism,” Jenkins said.
Jenkins believes that KNTK’s risk-reward ratio will become more attractive and its profit outlook for 2026-2027 will become clearer. The improving earnings expectations are supported by more significant full-year contributions from the Kings Landing project and better system connectivity as the ECCC pipeline moves towards its launch in the second quarter of 2026.
The analyst’s optimism is also supported by its acid gas injection project planned for late 2026, which will open up access to more sour gas and ease usage restrictions in the Delaware system. Jenkins also expects several macroeconomic and operational factors that impacted 2025 performance to improve through mid-2026, including Waha pricing conditions and additional volumes related to the Permian dry gas expansion.
Jenkins trades at around 8x 2027 EV/EBITDA, at the low end of the midstream peer group valuation range of 8x to 12x. Jenkins finds KNTK stock attractive because its balance sheet has strengthened following the sale of its equity stake in EPIC Crude Holdings, LP. Interestingly, Jenkins sees the possibility that KNTK could be an acquisition target for midstream companies looking to consolidate more Permian NGL (natural gas liquids) volumes.
Jenkins ranks No. 63 among more than 10,400 analysts tracked by TipRanks. Its ratings were profitable 74% of the time and delivered an average return of 17.1%. See Kinetik Holdings financial data on TipRanks.