The US Federal Reserve recently approved a much-anticipated rate cut, signaling that more cuts may be on the horizon. As the economy shifts towards lower interest rates, many investors are leaning towards dividend stocks that provide appealing returns.
Wall Street analysts, bolstered by their expertise, are offering insights to assist investors in selecting suitable dividend stocks for their investment portfolios.
Here’s a look at three dividend-paying stocks highlighted by top professionals, according to Tipranks, which tracks analyst performance.
CVS Health
The retail pharmacy chain CVS Health (CVS) has announced a quarterly dividend of $0.665 per share, set to be paid on November 3, 2025. With an annual dividend of $2.66 per share, CVS boasts a yield of 3.6%.
Following a discussion with CVS Health’s CEO David Joyner and CFO Brian Newman, Morgan Stanley analyst Erin Wright reaffirmed the buy rating for CVS. Wright has a price target of $82, reflecting confidence in the company’s integrated model and its potential for a turnaround. Interestingly, Tipranks AI analysts have a similar “outperform” rating for CVS, with a price target of $81.
Wright noted that Joyner is focused on stabilizing the company and driving a multi-year turnaround. She stressed that CVS’ integrated model addresses healthcare affordability and access, providing a more comprehensive solution to the inconsistent care delivery in the US.
Management underscored how this integrated approach would enhance CVS Stars (Medicare Star Evaluation System) and promote new pharmacy pricing models and biosimilar adoption. Looking ahead to 2026, CVS is entering its second year of turnaround with its Aetna Health Insurance Business, benefiting from strong retail industry performance due to tech investments and market share gains.
Regarding capital development, Wright emphasized CVS Health’s aim to return to a low triple target leverage, planning to maintain dividends until reaching its target payment rate of around 30% in 2023. Notably, CVS also intends to resume stock repurchases once it achieves its long-term target leverage.
Wright holds a ranking of 244th among over 10,000 analysts on Tipranks, with a profitable rating in 65% of cases, yielding an average return rate of 13.4%.
Williams Company
The second dividend stock to consider this week is energy provider Williams Company (WMB), which has a quarterly cash dividend of $0.50 per share, reflecting a 5.3% increase from last year. With an annual dividend of $2 per share, WMB shares offer a yield of 3.4%.
Stifel analyst Selman Akyol recently held a call with Williams CFO John Porter, discussing the company’s growth prospects, particularly its natural gas strategy. Akyol pointed out the rising demand for natural gas due to LNG exports and increased electricity usage.
Akyol further highlighted Williams’ objective of capturing data center opportunities, aiming for a total of 6 gigawatts, although the Socrates project represents only 400 megawatts. Additionally, LNG exports are a significant demand driver for natural gas, with WMB’s export capacity at around 10.5 billion cubic feet per day during construction.
Despite promising growth, Akyol noted that WMB remains committed to paying dividends and maintaining a solid balance sheet, keeping leverage in the 3.5-4.0x range. CFO Porter asserted that Williams’ high-quality assets support a reliable and growing dividend.
Overall, Akyol is positive about Williams’ stock, maintaining a buy rating with a price target of $64. In contrast, Tipranks AI analysts have set a price target of $63 and assigned a “neutral” rating to WMB.
Akyol ranks 354th among over 10,000 analysts on Tipranks, with a 66% success rate and an average return of 10.6%.
Code Energy
Lastly, there’s Code Energy (CHRD), an independent exploration and production company with sustainable assets primarily located in the Williston Basin in North Dakota and Montana. The company announced a base dividend of $1.30 for Q2, resulting in a yield of 5.1%, considering total dividends paid over the last year.
This week, Chord Energy revealed its plans to acquire Williston Basin assets from Exxon Mobil’s XTO Energy for $550 million.
Analyst Gabriele Sorbara from Siebert Williams Shank commented on the acquisition, describing it as beneficial for enhancing the core assets of the Williston Basin, boosting operational efficiency, and leveraging CHRD’s management capabilities.
He anticipates that the acquisition will positively affect cash flow per share. Although the net debt/EBITDA ratio has increased, it’s still seen as manageable compared to competitors, indicating CHRD’s strong capital returns. Notably, CHRD has reiterated its plan to return over 75% of adjusted free cash flow to shareholders through dividends and buybacks.
“We continue to endorse our buy ratings based on valuations, supported by solid and stable free cash flow yields,” Sorbara mentioned. Analysts have repeated buy ratings for CHRD, setting a price forecast of $140. Tipranks AI analysts have a price target of $118 and an “outperform” rating for Code Energy.
Sorbara currently ranks 142nd among the more than 10,000 analysts tracked by Tipranks, with a profitable rating in 57% of situations and an impressive average return rate of 24.4%.
