Top Wall Street analysts favor these 3 dividend stocks for steady returns

Investors seeking steady returns amid macro uncertainties ought to consider adding dividend-paying stocks to their portfolios.

Given the vast universe of dividend-paying stocks, it can be challenging for investors to identify the most attractive ones. To this end, the recommendations of top Wall Street analysts could make the task easier, as the decisions of these experts are based on in-depth financial analysis.

Here are three dividend-paying stocks, highlighted by Wall Street's top pros, as tracked by TipRanks, a platform that ranks analysts based on their past performance.

We begin with MPLX LP (MPLX), a diversified, master limited partnership (MLP) that owns and operates midstream energy infrastructure and logistics assets and provides fuel distribution services. The company recently announced an agreement to acquire Northwind Delaware Holdings LLC for about $2.38 billion. The deal is expected to enhance the company's Permian Basin natural gas and natural gas liquids (NGL) value chains.

Meanwhile, MPLX reported distributable cash flow (DCF) of $1.4 billion for the second quarter, enabling the return of $1.1 billion of capital. MPLX offers a current dividend yield of 7.5%.

Recently, Stifel analyst Selman Akyol reaffirmed a buy rating on MPLX stock and increased the price forecast to $60 from $57. The analyst explained that while MPLX's Q2 results fell short of his expectations, he remains encouraged by the company's growth, further bolstered by its recent Northwind acquisition and its gathering and downstream operations. The analyst added that it may take 12 to 18 months to see the full impact as expansions roll out.

“Management remains confident in its ability to grow its distribution at 12.5% for the next several years,” said Akyol. The analyst highlighted that MPLX has grown both its EBITDA (earnings before interest, tax, depreciation, and amortization) and DCF at a compounded growth rate of 7% over the last four years. He expects this trend to continue with assets that produce durable cash flows coming online.

Overall, Akyol is bullish on MPLX, thanks to its diverse asset base and the Northwind acquisition. Interestingly, TipRanks' AI Analyst has an “outperform” rating on MPLX with a price target of $55.

Akyol ranks No. 319 among more than 9,900 analysts tracked by TipRanks. His ratings have been profitable 66% of the time, delivering an average return of 10.6%. See MPLX Ownership Structure on TipRanks.

Oil and gas exploration and production company EOG Resources (EOG) is the next dividend pick this week. The company paid $528 million in dividends and repurchased $600 million shares in the second quarter. EOG has declared a quarterly dividend of $1.02 per share, payable on Oct. 31. With an annualized dividend of $4.08 per share, EOG offers a dividend yield of 3.4%.

Recently, RBC Capital analyst Scott Hanold reiterated a buy rating on EOG stock with a price target of $140. TipRanks' AI Analyst is also upbeat about EOG and has an “outperform” rating with a price target of $133.  

EOG is bolstering its position in the Utica shale with the acquisition of Encino Acquisition Partners. Hanold expects the company's solid track record of improving operations to reflect in the Utica region over the upcoming quarters. “The Utica should garner a lot of investor attention moving forward, as we think it can become a foundational asset for EOG in fairly short order,” said the analyst.

Hanold also expects EOG's first mover activity in the Gulf Nations (Bahrain and UAE), targeting unconventional activity to present longer-term value opportunities. Moreover, Hanold expects EOG's growing natural gas exposure to exceed 3 Bcf/d (billion cubic feet per day), on a net basis, by the end of 2025, thanks to the company's Dorado pure-gas focused development and the opportunity in the Utica.

The analyst added that the long-term secular outlook for natural gas remains robust and EOG is well-positioned to capitalize on that opportunity. Given that EOG was an early mover to secure premium gas commercial agreements, Hanold thinks its two gas plays could attract attention from hyperscalers due to their massive scale.

Finally, Hanold pointed out that EOG's solid balance sheet, which remains best in class across the energy spectrum, enables management to generate high levels of shareholder returns, despite macro uncertainty. He stated that increasing the fixed dividend at a leading rate continues to be a “core tenet” and is supported by the company's lower break-even level.

Hanold ranks No. 26 among more than 9,900 analysts tracked by TipRanks. His ratings have been successful 66% of the time, delivering an average return of 28.9%. See EOG Resources Statistics on TipRanks.

Finally, let's look at home improvement retailer Home Depot (HD). While the company's Q2 adjusted earnings and revenue fell short of Wall Street's expectations, it maintained its full-year guidance. Home Depot said that momentum continued to improve in its core categories throughout the quarter. At a quarterly dividend of $2.30 (annualized per share dividend of $9.20), HD stock offers a yield of 2.2%.

Following the Q2 print, Truist analyst Scot Ciccarelli reiterated a buy rating on Home Depot stock and increased his price forecast to $454 from $433, citing improving underlying trends in the core business. In comparison, TipRanks' AI Analyst has a price target of $458 with an “outperform” rating on HD stock.

Ciccarelli noted that Home Depot witnessed its broadest sales growth across categories and geographies in over two years. He added that the company delivered its third consecutive quarter of comparable sales growth in the U.S., with accelerating trends as weather normalized.

The analyst contended that while large (financed) project spending remains subdued, demand continues to rise, with big-ticket (over $1,000) transactions growth accelerating to 2.6% in Q2 FY25. Moreover, Home Depot is experiencing a double-digit increase in sales to professionals, who use their new trade credit and leverage the same/next-day delivery services.

Additionally, Ciccarelli noted that Home Depot is more insulated from tariff-led volatility than other companies in Truist's coverage. The analyst attributed HD's ability to sail through the ongoing tariff challenges without raising prices to its buying power and diversified sourcing model.

Ciccarelli ranks No. 11 among more than 9,900 analysts tracked by TipRanks. His ratings have been profitable 76% of the time, delivering an average return of 19.2%. See Home Depot Insider Trading Activity on TipRanks.