Economic uncertainties and the ongoing tariff wars have been keeping the stock market on edge, leaving investors searching for more stable investment options. Dividend-paying stocks often provide a measure of stability during such tumultuous times.
For those seeking reliable income amidst this unpredictability, incorporating dividend-yielding stocks into one’s investment portfolio could be an ideal strategy. In this case, insights from top Wall Street analysts offer valuable guidance for investors aiming to select the best options.
Highlighted below are three dividend-paying stocks that have caught the attention of Wall Street’s finest minds, as tracked by TipRanks, a platform renowned for ranking analysts based on their past performances.
Let’s start with Vitesse Energy. This company is a standout in the energy sector, primarily investing as a non-operator in various oil and gas ventures across the United States. Earlier this month, Vitesse took a significant step by acquiring Lucero Energy, a move they anticipate will boost dividends and enhance liquidity, thus empowering further lucrative acquisitions.
Recently, Vitesse published its fourth-quarter results and declared a quarterly dividend of $0.5625 per share, reflecting a 7% increase from the previous quarter. The stock currently offers a robust 9.3% dividend yield.
Following the announcement, Lloyd Byrne, an analyst at Jefferies, reiterated his buy rating for Vitesse stock with a price target of $33. Byrne acknowledged a slight dip in Q4 EBITDA, which was attributed to lower production levels and one-off expenses from the Lucero deal.
He applauded Vitesse’s decision to boost their dividend post-acquisition, aligning with their strategy of increasing payouts as operating cash flow rises. The goal is to maintain a dividend coverage ratio around 1.0x.
The Lucero acquisition is viewed positively, expanding Vitesse’s operations in the Bakken area and adding approximately 25 net sites, which translate to a decade of inventory. Though this deal represents a departure from Vitesse’s typical non-operational approach, it affords them greater control over capital and future deals, according to Byrne.
Byrne ranks 166th among over 9,400 analysts tracked by TipRanks, with a track record of profitable ratings 54% of the time and delivering an average return of 20.1%.
Shifting focus to Viper Energy, a branch of Diamondback Energy, which owns and exploits oil and gas properties mainly in North America’s Permian Basin. Viper declared a fourth-quarter 2024 cash dividend of 30 cents per share, alongside a variable dividend of 35 cents.
JPMorgan analyst Arun Jayaram recently maintained a buy rating on Viper’s stock but revised the price target from $56 to $51, a change reflecting updated exploration models. This adjustment considers natural gas supply-demand dynamics and the potential impact of tariffs on oil prices.
Jayaram’s enthusiasm for Viper rests on their business model, which leverages perpetual royalty interests without incurring capital or operating costs. Viper’s association with Diamondback Energy offers increased transparency and stability, attributes valued by Jayaram.
Viper’s policy of returning 75% of distributable cash flow to stakeholders makes it a standout, complemented by strategic dividends and share buybacks. Jayaram, who ranks 677th among his peers on TipRanks, has successfully predicted market moves 53% of the time, yielding an average return of 8.3%.
Lastly, let’s discuss ConocoPhillips. Jayaram, who also covers this stock, recently reaffirmed his buy rating but adjusted the price target to $115, down from $127. He expressed concern about potential further oil price declines. ConocoPhillips announced a first-quarter 2025 dividend of 78 cents per share, yielding 3.1%.
Since revamping their strategy in 2016, ConocoPhillips has set itself apart as a prominent player in exploration and production. Jayaram noted their savvy counter-cyclical deals, which have decreased supply costs while enhancing their Lower 48 inventory’s durability.
Looking ahead, ConocoPhillips could be among the few in JPMorgan’s coverage to boost cash returns in 2025, with plans for $6 billion in stock buybacks.
“Given its strong portfolio and shareholder-friendly practices, COP represents a foundational holding in any E&P-focused investment,” Jayaram concluded.
By keeping a close eye on these companies, investors may find opportunities to stabilize and grow their portfolios in these choppy economic waters.
