rewrite this title Top Wall Street analysts are bullish on these dividend stocks

Dividend stocks provide stable income for investors and enhance the overall returns of a portfolio.

However, picking the right dividend stocks from a vast universe of publicly traded companies could be difficult. To this end, the recommendations of top Wall Street analysts can help investors make the right decision, as these experts select stocks of companies that could deliver strong financials to support consistent dividend payments.

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.

McDonald’s

Fast-food chain McDonald’s (MCD) recently reported fourth-quarter earnings in line with market expectations. However, the company’s revenue lagged the Street’s estimates, as sales at the U.S. restaurants were affected by an E. coli outbreak in late October. That said, MCD stock rose on earnings day due to strong international sales and expectations of improvement in the company’s performance in 2025, backed by strategic efforts.

Earlier this month, McDonald’s announced a cash dividend of $1.77 per share, payable on March 17. At an annualized dividend per share of $7.08, MCD stock offers a dividend yield of 2.3%. It is worth noting that McDonald’s is a dividend aristocrat and has increased its dividends for 48 consecutive quarters.

Following the Q4 results, Jefferies analyst Andy Barish reiterated a buy rating on MCD stock and raised the price target to $349 from $345. While the decline in Q4 2024 U.S. same-store sales was largely anticipated, the analyst thinks that modestly positive traffic and continued momentum into Q1 2025 seem favorable.

Further, Barish thinks that recent traffic trends indicate that McDonald’s value messaging is gaining traction, with the McValue menu launch expected to support momentum along with other growth drivers like digital sales, delivery, drive-thru and core menu initiatives. The analyst continues to expect 2025 and 2026 U.S. same-store sales growth of 2.3% and 2.6%, respectively.

Noting the improving underlying traffic trends in the domestic market and solid same-store sales trends in international markets, Barish thinks that MCD is “best positioned to outperform peers in ’25+ through attractive value proposition from a scaled, global brand.”

Barish ranks No. 566 among more than 9,300 analysts tracked by TipRanks. His ratings have been profitable 57% of the time, delivering an average return of 10.4%. See McDonald’s Stock Charts on TipRanks.

Ares Capital

We move to this week’s second dividend pick, Ares Capital (ARCC). It is a business development company that offers financing solutions to middle-market entities. Earlier this month, Ares Capital announced its Q4 2024 results and declared a dividend of 48 cents per share for the first quarter, payable on March 31. ARES stock offers a dividend yield of 8.2%.

In reaction to the Q4 print, RBC Capital analyst Kenneth Lee reaffirmed a buy rating on ARCC stock and increased the price target slightly to $24 from $23. The analyst stated that the company’s Q4 results were somewhat mixed relative to his expectations. While net asset value per share of $19.89 was modestly above RBC’s estimate of $19.87, core earnings per share of 55 cents slightly fell short of RBC’s forecast of 58 cents per share.

On the positive side, Lee noted that portfolio activity was slightly better than expectations. Meanwhile, leverage at 1.03x was lower than expectations, partly due to the equity capital raised in the quarter. The analyst highlighted that ARCC’s credit performance remained solid amid the current economic backdrop. Specifically, Lee noted that the non-accrual rate increased to 1.7% (amortized cost basis) from 1.3% in Q3 2024, but was still lower than the 2.8% average rate witnessed by the company since the Great Financial Crisis.

Lee revised his 2025 core EPS estimate to $2.10 from $2.13 and the 2026 core EPS estimate to $2.14 from $2.16 to reflect assumptions about a decline in asset yields, partially offset by downward revision in debt costs.

Overall, Lee is bullish on ARCC, as he favors the company’s “strong track record of managing risks through the cycle, well-supported dividends, and scale advantages.”

Lee ranks No. 15 among more than 9,300 analysts tracked by TipRanks. His ratings have been successful 74% of the time, delivering an average return of 19.1%. See Ares Capital’s Ownership Structure on TipRanks.

Energy Transfer

Let’s look at Energy Transfer (ET), a midstream energy company that operates an extensive network of pipeline and associated energy infrastructure across 44 states in the U.S. The company’s fourth-quarter results and adjusted earnings before interest, tax, depreciation and amortization missed expectations. Nonetheless, it plans to spend $5 billion on growth projects this year, including capacity expansion. The rise in capex comes amid growing demand for power to support data centers.

Meanwhile, Energy Transfer announced a quarterly cash distribution of $0.3250 per common unit for Q4 2024, reflecting a 3.2% year-over-year increase. ET stock offers a yield of 6.7%.

Reacting to Q4 results, Mizuho analyst Gabriel Moreen reiterated a buy rating on ET stock with a price target of $24. The analyst said that he was not overly concerned about the FY25 guidance miss, as he thinks that the main story is the company’s notable capex guidance of about $5 billion for this year.

Moreen noted that the capex outlook is way above the company’s $2.5 billion to $3.5 billion annual “run-rate” expectation and seems elevated. Nonetheless, the analyst is constructive on this capex guidance, given that most of the planned spending will be directed towards projects in which Energy Transfer has extensive experience, such as the Hugh Brinson Pipeline, NGL export, transportation and storage, as well as the development of the company’s Permian gathering and processing footprint.

While the 2025 adjusted EBITDA guidance missed expectations, Moreen contends that ET has a strong record when it comes to optimization, which could translate into some earnings upside. Overall, the analyst is optimistic about Energy Transfer’s future and expects its robust capex to translate into strong earnings growth beyond 2026.

Moreen ranks No. 62 among more than 9,300 analysts tracked by TipRanks. His ratings have been profitable 78% of the time, delivering an average return of 16.4%. See Energy Transfer Insider Trading Activity on TipRanks.