Last week’s stock turbulence, triggered by the Trump administration’s tariff actions, left investors feeling the weight of uncertainty. Amid this ongoing market volatility, those looking to stabilize and enhance their returns might want to consider dividend stocks. Insight from top Wall Street analysts offers guidance on choosing stocks that consistently pay dividends and can boost overall returns.
Here are three dividend stocks spotlighted by the best on TipRanks, a platform that measures analysts’ track records.
### Coterra Energy
Kicking off this list is Coterra Energy (CTRA), a company involved in exploration and production with significant operations in the Permian Basin, Marcellus Shale, and Anadarko Basin. Recently, the company reported an impressive fourth-quarter performance, with dividends and buybacks totaling $1.086 billion in 2024—an impressive 89% of the year’s free cash flow.
Moreover, Coterra raised its dividend by 5% to 22 cents per share for the fourth quarter, offering investors a 3.3% dividend yield. Following these results, Nitin Kumar from Mizuho maintained a buy rating, targeting a $40 price. Kumar noted Coterra’s stronger-than-expected earnings and cash flow, attributing this to increased oil production and robust volumes.
Kumar highlighted minor capital spending adjustments for 2025—reduced spending in the Permian Basin by $70 million and a $50 million increase in the Marcellus Basin. This shift aligns with their strategic outlook on commodity prices, showcasing Coterra’s adaptability.
He also pointed out that Coterra’s natural gas exposure is often underestimated, especially as the commodity’s market outlook brightens. Kumar, who ranks 347th among more than 9,400 analysts on TipRanks, boasts a 58% success rate and an average return of 10.8%.
### Diamondback Energy
Next up, Diamondback Energy (FANG), an independent oil and gas company also focused on the Permian Basin. Last year, Diamondback bolstered its business by acquiring Endeavor Energy Resources, and reported stronger-than-expected results for the fourth quarter on February 24.
They announced a notable 11% increase in annual base dividend to $4 per share. For Q4 2024, a $1 base cash dividend per share was declared, with a payment scheduled for March 13.
Following these results, Gabriele Sorbara from Siebert Williams Shank reaffirmed her buy rating for FANG, with a price target of $230. Sorbara highlighted the company’s robust operational performance and efficiency, which surpassed both her estimates and the market consensus in free cash flow.
Sorbara anticipates an optimistic 2025, forecasting potential upward revisions to their free cash flow estimates if oil prices remain strong. She remains positive about Diamondback’s strategic positioning, emphasizing their exceptional Permian Basin assets, strengthened further with the acquisition of Double Eagle IV.
Sorbara ranks 217th on TipRanks, maintaining a 51% success rate and an average return of 18.4%.
### Walmart
Lastly, retail giant Walmart (WMT) reported impressive fourth-quarter earnings, surpassing expectations both in revenue and profit. However, the company issued caution about slowing profit growth due to tepid consumer spending and currency exchange challenges.
Walmart announced a 13% boost in its annual dividend to 94 cents per share, marking the 52nd straight year of dividend increases. In light of this, Evercore analyst Greg Melich reiterated his buy rating, albeit lowering his price target from $110 to $107 to account for softening EPS projections.
Despite short-term hurdles, Melich remains optimistic on Walmart, citing its strong value chain, merchandising expertise, and enhanced customer experience. He also sees opportunities for market share gains and margin expansion through advertising revenues and operational efficiencies.
Melich believes the dip in Walmart’s stock presents a “second chance” for investors seeking quality growth, benefiting from the company’s emphasis on value and innovation. He ranks 537th on TipRanks, with a 68% success rate and an average return of 12.8%.
