"Stable income is 'really good' during market turmoil, these three high dividend stocks are favored by analysts."

date
10/03/2025
avatar
GMT Eight
The Trump administration's tariff policy last week caused market volatility and uncertainty, putting pressure on major stock indexes. In the continued market fluctuations, investors seeking stable returns may consider adding some dividend stocks to their investment portfolios. The recommendations of top Wall Street analysts can provide guidance for investors to select stocks with stable dividend records and potential for overall returns. Here are three dividend stocks highlighted by top experts on the TipRanks platform, which ranks analysts based on their past performance. Coterra Energy The first recommended dividend stock this week is Coterra Energy (CTRA.US), a company focused on exploration and production in the Permian Basin, Marcellus Shale, and Anadarko Basin. The company's recent fourth-quarter financial report showed optimistic performance, with total dividends and stock buybacks reaching $1.086 billion in 2024, accounting for 89% of the full-year free cash flow. In addition, the company raised its dividend by 5% in the fourth quarter of 2024, to 22 cents per share. Coterra's dividend yield is 3.3%. Following the announcement of the fourth-quarter financial report in 2024, RBC Capital Markets analyst Nitin Kumar reiterated his buy rating on the stock with a target price of $40, calling Coterra stock a "top pick." The analyst stated that the company exceeded expectations in earnings per share and cash flow per share (CFPS) due to increased oil production and stable sales. Kumar pointed out that Coterra Energy reaffirmed its preliminary outlook for 2025 released in November, with slight adjustments in expenditure structure, cutting spending in the Permian Basin by $70 million and increasing spending in the Marcellus region by $50 million. This moderate adjustment in capital expenditure structure reflects the company's outlook on commodity prices and its flexibility in capital allocation. The analyst also stated, "In our view, Coterra's sensitivity to natural gas prices is often underestimated, especially in the current positive commodity outlook." According to over 9,400 analysts tracked by TipRanks, there is a 58% probability of profit with an average return of 10.8%. Diamondback Energy Another dividend stock Diamondback Energy (FANG.US) is also favored by investors. This independent oil and gas company focuses on the Permian Basin. Last year, the company strengthened its business through the acquisition of Endeavor Energy Resources. On February 24, Diamondback Energy announced fourth-quarter results that exceeded market expectations. The company announced an 11% increase in annual base dividends to $4 per share. It also announced a base cash dividend of $1 per share for the fourth quarter of 2024, payable on March 13. Given this outstanding performance, Siebert Williams Shank analyst Gabriele Sorbara reiterated a buy rating on Diamondback Energy stock with a target price of $230. The analyst noted that the fourth-quarter results reflect the company's strong operational execution, with production exceeding expectations and expenses reduced. In addition, fourth-quarter free cash flow (FCF) exceeded Sorbara's estimates by 9.8% and beat Wall Street's general expectations by 13%. Sorbara also mentioned the company's better-than-expected outlook for 2025, with free cash flow forecast potentially exceeding $5.9 billion with a WTI price of $70 per barrel in West Texas Intermediate (WTI) . Overall, Sorbara is optimistic about Diamondback Energy stock, believing that the company's top-tier assets in the Permian Basin provide a strong and sustainable free cash flow yield. The recent acquisition of Double Eagle IV further strengthens this advantage, placing the company in a favorable position. According to analysts tracked by TipRanks, there is a 51% probability of profit with an average return of 18.4%. Walmart Inc. Retail giant and dividend heavyweight Walmart Inc. (WMT.US) reported fourth-quarter results that exceeded expectations in revenue and profit. However, the company warned investors that profit growth would slow due to weak consumer spending and currency headwinds. Interestingly, Walmart Inc. announced a 13% increase in annual dividends to 94 cents per share (quarterly dividend of 23.5 cents per share). This marks the 52nd consecutive year of dividend increases for the company. Following the earnings release, Evercore analyst Greg Melich reiterated a buy rating on Walmart Inc. stock but lowered the target price from $110 to $107 to reflect lower earnings per share expectations. Specifically, Melich slightly reduced his earnings per share estimates for the calendar years of 2025 and 2026 by 10 cents and 5 cents respectively, due to forex pressures, the impact of acquiring Vizio, and a higher actual tax rate compared to the previous year. Despite short-term headwinds, Melich remains optimistic about Walmart Inc. stock and emphasizes the company's multiple strengths, including its value proposition, strong merchandising capabilities, and improved customer experience. The analyst believes that with support from advertising revenue, automation, and operational leverage, Walmart Inc. is poised to continue expanding market share and increase its earnings before interest and taxes (EBIT) margin. Melich believes that the dip in Walmart Inc. stock after the earnings release provides a "second chance" for investors seeking quality growth opportunities. In his view, as a value leader and innovator, Walmart Inc. is a strong long-term investment option. The TopRanks platform includes over 9,400 analysts who believe there is a 51% probability of profit with an average return of 18.4%.The virtuous cycle has been initiated, and the company's development momentum is strong.Analysts tracked by TipRanks believe there is a 68% probability that the stock will bring profits, with an average return of 12.8%.

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