A Chevron gas station in San Francisco, California, USA, on Tuesday, October 28, 2025.
Jason Henry | Bloomberg | Getty Images
Looking ahead to 2026, investors' focus could shift from fixed income instruments to attractive dividend stocks amid lower interest rates.
Choosing the right names from a vast universe of dividend companies is a challenging task. Tracking the stock picks of top Wall Street analysts can help investors make the right decisions because these experts assign their ratings after a thorough analysis of a company's fundamentals.
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.
Chevron
Oil and gas giant Chevron (CVX) is this week's first dividend pick. The company returned $6 billion in cash to shareholders in the third quarter via $3.4 billion in dividends and $2.6 billion in share repurchases. With a quarterly dividend of $1.71 per share (annualized dividend of $6.84 per share), Chevron offers a yield of approximately 4.5%.
After meetings with Chevron management, Piper Sandler analyst Ryan Todd reiterated his Buy rating on CVX stock with a price target of $178. Interestingly, TipRanks' AI analyst is also bullish on the energy company with an “Outperform” rating and a $164 price target.
Todd noted that while the ongoing scenario of an adverse crude oil situation and positive refining business has impacted Chevron's performance, his meetings with management reflected the company's solid position.
The analyst claims that Chevron's capital efficiency is underestimated. Specifically, the company's upstream capital expenditure/BoE (barrel of oil equivalent). The output produced is 29% below the comparative average. He added that given declining capital and operating costs, the benefits of artificial intelligence (AI) yet to come, and a resource base that is better than feared, Chevron's annual free cash flow (FCF) growth outlook of 10% per year appears conservative.
Additionally, Todd argued that “investors may continue to be concerned about the total cost of ownership.” [Tengizchevroil joint venture] Contract extensions and ongoing questions about resource depth after 2030 are misguided.” On this matter, the analyst noted that, in addition to the projects included in Chevron's official plan, management is optimistic about the additional opportunities presented by increased global access (particularly in the Middle East), an increase in exploration activities, and expansion and technology-driven prospects.
Todd is ranked #868 among more than 10,200 analysts tracked by TipRanks. Its valuations were profitable 58% of the time and delivered an average return of 8.5%. See Chevron ownership structure on TipRanks.
Darden Restaurants
Restaurant company Darden Restaurants (DRI) owns a portfolio of brands including Olive Garden, LongHorn Steakhouse and Yard House. The company recently announced a quarterly dividend of $1.50 per share, payable on February 2, 2026. With an annual dividend of $6 per share, DRI offers a yield of 3.2%.
Following the company's mixed results for the second quarter of fiscal 2026, BTIG analyst Peter Saleh reiterated his Buy rating on Darden shares with a price target of $225. In comparison, TipRanks' AI analyst has a price target of $218 with an Outperform rating.
Saleh noted that Darden had a mixed but “mostly positive” quarter, with better-than-expected comparable sales boosted by improved traffic across the company's key brands.
“His strategy of underpricing inflation, relying on delivery and offering a desirable menu was well received by diners and drove another quarter of the industry's significant outperformance,” Saleh said.
The five-star analyst emphasized that high beef prices continued to be a headwind, weighing on restaurant margins and earnings per share (EPS) for the quarter. Still, Saleh is optimistic that Darden will meet its forecast as beef costs appear to have peaked, pressure on labor costs is easing and management is leaning toward price increases to offset raw material costs.
Overall, Saleh continues to be impressed with Darden's revenue momentum, and while profits haven't kept up yet, they're expected to improve in the future.
Saleh ranks 641st among more than 10,200 analysts tracked by TipRanks. Its valuations were profitable 61% of the time and delivered an average return of 10.5%. View Darden Restaurants stats on TipRanks.
Ares Capital
This week's third dividend pick is Ares Capital (ARCC), a specialty finance company that provides direct loans and other investments to private, mid-sized businesses. The company declared a dividend of 48 cents per share, payable on December 30, 2025. With an annual dividend of $1.92 per share, ARCC stock offers a yield of 9.5%.
In his latest research note on Business Development Companies (BDCs), RBC Capital analyst Kenneth Lee named Ares Capital one of his favorite BDC names for 2026 and reiterated a Buy rating with a $23 price target. TipRanks AI analyst has assigned ARCC stock an “Outperform” rating with a $24 price target.
While Lee is less bullish on the BDC space heading into 2026 due to a possible decline in net interest income (NII) and return on equity (ROE) due to lower base rates, he remains bullish on Ares Capital. In particular, he referred to management's confidence that it will be able to maintain dividends at the current level despite the expectation of lower base interest rates.
Key strengths included ARCC's dominance in the BDC market, its large size and strong lending on the Ares direct lending platform, according to Lee. He also highlighted Ares Capital's more than 20 years of experience.
“In our view, ARCC's dividends are well supported by the company's core earnings per share generated as well as potential net realized gains,” Lee said, supporting his bullish stance.
Lee is ranked #341 among more than 10,200 analysts tracked by TipRanks. Its ratings were successful 66% of the time and delivered an average return of 11.5%. View Ares Capital's insider trading activity on TipRanks.