Recent discussions surrounding tariffs, the rise of China’s DeepSeek, and the earnings reports from major companies have led to a volatile stock market. For investors looking for more stability and steady returns, dividend stocks might be a good option to consider.
With the overwhelming number of dividend-paying stocks available, choosing the right one can be quite challenging. Investors could benefit from following the recommendations of top Wall Street analysts. These professionals base their picks on thorough evaluations of a company’s finances and potential for growth.
Here are three dividend stocks that have caught the attention of top analysts on TipRanks, a platform that tracks the performance of financial experts.
### International Business Machines (IBM)
The first dividend stock on this week’s list is IBM, a heavyweight in the tech industry. IBM recently caught investor attention by exceeding expectations with its fourth-quarter earnings. A significant contributor to this success was its Software segment, fueled by strong demand for artificial intelligence and the Red Hat Linux operating system.
In the same quarter, IBM returned $1.5 billion to shareholders via dividends and boasts a dividend yield of 2.6%. Following these results, Evercore analyst Amit Daryanani increased his price target for IBM to $275 from $240, maintaining a buy rating. Daryanani pointed out that the growth in the company’s Software business offset weaknesses in its Consulting and Infrastructure sectors.
Daryanani commented, “The earnings highlight IBM’s promising position in both Software and Consulting, with AI and potential mergers and acquisitions serving as additional growth drivers.” Even though growth appeared flat in Q4, IBM anticipates improvement in their Consulting segment in 2025, thanks to increased IT spending and the conversion of $5 billion in AI signings into revenues.
Furthermore, Daryanani noted that IBM’s returns for shareholders consisted only of dividends, with no share buybacks. The company is focusing on a steady and growing dividend while likely allocating more funds towards mergers and acquisitions. Daryanani holds a TipRanks ranking of 244 out of over 9,300 analysts, with a success rate of 61% and an average return of 14%. You can view IBM’s stock charts on TipRanks.
### Verizon Communications (Verizon)
Verizon Communications is the next stock on the list, a leading name in telecommunications. Verizon reported strong results for the fourth quarter of 2024, marking its best quarter for postpaid phone gross additions in five years. The company offered a quarterly dividend of just over 67 cents per share on February 3, resulting in a dividend yield of 6.8%.
Tigress Financial analyst Ivan Feinseth recently reiterated a buy rating for Verizon, setting a price target of $55. He emphasizes that the resurgence in mobile and broadband subscribers is bolstering the company’s revenue and cash flow. Feinseth believes that Verizon will continue to benefit from the widespread adoption of 5G and increasing services revenue, alongside AI-driven growth in mobile edge computing.
He states, “5G and margin growth, paired with AI-enhanced network optimization, are accelerating business performance trends.” Feinseth also expects Verizon’s ventures into new technologies—like autonomous vehicle connectivity, smart city infrastructure, and remote healthcare solutions—to further drive growth. Moreover, with Verizon increasing its dividend annually for 18 years, the stock presents a compelling opportunity.
Feinseth is ranked 169th among more than 9,300 analysts tracked by TipRanks, with successful ratings 62% of the time, producing an average return of 15%. You can explore Verizon’s insider trading activities on TipRanks.
### EPR Properties
Finally, EPR Properties offers another appealing dividend stock. As a real estate investment trust (REIT) specializing in experiential properties such as movie theaters, amusement parks, and ski resorts, EPR provides a dividend yield of 7.2%.
After a recent non-deal roadshow, RBC Capital analyst Michael Carroll maintained a buy rating on EPR with a price target of $50. He remarked that the management shared an enticing narrative based on a healthy tenant base and a pragmatic investment strategy. Carroll noted that consumers, resilient post-COVID-19, continue to prioritize experiences—benefitting EPR’s experiential property focus.
The analyst is optimistic about a rebound in the box office by 2025, with expectations of 110-115 wide releases by studios in 2025, compared to only 95 in 2024. Carroll views EPR’s substantial dividend yield of over 7% as very attractive and expects it to grow by 3% to 5% annually. At an estimated 9.0-times forward adjusted funds from operations, EPR’s valuation appears to be favorable. Carroll holds a TipRanks ranking of 886 among more than 9,300 analysts, with a 61% success rate and an average return of 7.5%. You can delve into EPR Properties’ ownership structure on TipRanks.
