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The recent tariff policies introduced during the Trump administration created significant ripples in the stock market, leading to increased volatility and uncertainty within major indices. In such a fluctuating environment, investors often look for stability, making dividend-paying stocks an appealing option for portfolio diversification.
To assist in navigating the stock selection process, insights from leading Wall Street analysts can prove invaluable. Here, we explore three promising dividend-paying stocks identified by top professionals on TipRanks, a resource that evaluates analysts based on their historical performance.
Coterra Energy
First on our list is Coterra Energy (CTRA), a key player in exploration and production, primarily operating in the Permian Basin, Marcellus Shale, and Anadarko Basin. The firm recently reported promising earnings for the fourth quarter of 2024, with dividends and share buybacks amounting to $1.086 billion, accounting for 89% of its free cash flow for the year.
Coterra also raised its dividend by 5%, now set at 22 cents per share for the fourth quarter. With a dividend yield of 3.3%, CTRA proves an attractive option for income-seeking investors.
Mizuho analyst Nitin Kumar maintained a buy rating on CTRA, setting a price target of $40, identifying it as a “top pick.” He noted that the company exceeded expectations in earnings and cash flow due to higher oil production and favorable volume trends. Kumar highlighted a minor shift in capital expenditures, suggesting that the firm is adept at navigating changes in commodity prices.
Interestingly, he emphasized that Coterra’s connection to natural gas prices is often overlooked, especially given the strengthening outlook for the commodity.
Ranked No. 347 out of over 9,400 analysts on TipRanks, Kumar boasts a profitability rate of 58%, achieving an average return of 10.8%. Discover Coterra Energy Stock Buybacks on TipRanks.
Diamondback Energy
Another notable recommendation is Diamondback Energy (FANG), which operates independently in the oil and gas sector with a concentration on the Permian Basin. The company recently fortified its position by acquiring Endeavor Energy Resources. On February 24, Diamondback announced fourth-quarter results that surpassed market expectations.
The company reported an 11% increase in its annual base dividend to $4.00 per share, with a Q4 dividend set at $1.00 per share, payable on March 13.
Following this announcement, Siebert Williams Shank analyst Gabriele Sorbara reaffirmed his buy rating on FANG and raised his price target to $230. Sorbara pointed out the strong operational performance reflected in the quarter’s results, which featured both higher-than-anticipated production and lower costs. Notably, the firm’s free cash flow for Q4 exceeded expectations by 9.8%.
He also conveyed an optimistic view regarding the 2025 outlook, suggesting potential revisions to the free cash flow forecast, particularly at a $70 per barrel WTI price level.
Sorbara’s assessment underscores FANG’s robust free cash flow yield driven by its premier assets in the Permian Basin, further solidified by the recent acquisition. Ranking No. 217 among analysts on TipRanks, Sorbara has been successful 51% of the time, offering an average return of 18.4%. Explore Diamondback Energy Insider Trading Activity on TipRanks.
Walmart
Rounding out the list is the retail giant Walmart (WMT), which recently reported favorable earnings for its fiscal fourth quarter. Despite this, the company warned investors to anticipate a deceleration in profit growth due to persistent consumer spending weaknesses and foreign exchange challenges.
Notably, Walmart declared a 13% increase in its annual dividend to 94 cents per share, reaffirming its commitment to dividend growth for an impressive 52 consecutive years.
In the wake of its results, Evercore analyst Greg Melich reiterated a buy rating, albeit lowering the price target from $110 to $107, influenced by revised EPS estimates. According to Melich, minor adjustments were made to 2025 and 2026 EPS forecasts due to currency pressures and increased tax obligations stemming from the Vizio acquisition.
Despite these near-term challenges, Melich remains confident in Walmart’s strength, citing its solid value proposition and enhanced customer engagement as key drivers for growth and market share capture. He suggests that the recent post-earnings decline in WMT presents a valuable opportunity for investors aiming for quality growth.
Melich ranks No. 537 among analysts on TipRanks, with a track record of profitability at 68%, achieving an average return of 12.8%. View the Walmart Ownership Structure on TipRanks.
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