These Are the Top Dividend Stocks to Watch in 2025, According to Top Wall Street Analysts

After a robust performance in 2024 driven by excitement around artificial intelligence and interest rate reductions, major U.S. indices face potential headwinds in 2025 due to lingering macroeconomic uncertainties. In such a landscape, dividend-paying stocks offer investors a reliable income stream, making them an appealing choice for those seeking stability amidst market volatility.

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To assist investors in navigating this environment, leading Wall Street analysts have identified a selection of attractive dividend stocks. These picks, backed by strong fundamentals and consistent payouts, provide opportunities for income and growth. Below are three dividend-paying stocks that top analysts, as tracked by TipRanks, have spotlighted for 2025.

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Ares Capital (ARCC): A Leader in Specialty Finance

Ares Capital Corporation, a specialty finance provider focusing on private middle-market companies, is a standout among dividend stocks. The company offers a quarterly dividend of $0.48 per share, translating to an impressive yield of 8.7%.

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RBC Capital analyst Kenneth Lee recently reiterated his "buy" rating on ARCC, with a price target of $23. In his 2025 outlook for business development companies (BDCs), Lee named Ares Capital his top BDC pick for the year. He highlighted ARCC’s leadership in the sector, emphasizing its benefits from scale, robust origination capabilities within the Ares direct lending platform, and a solid track record spanning two decades.

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Lee pointed to ARCC’s ability to provide flexible capital solutions across various financing needs as a key differentiator. He also noted the company’s success in managing risks through economic cycles and leveraging the resources of the Ares Credit Group. As the largest publicly traded BDC by assets, ARCC enjoys significant scale advantages, further solidifying its position.

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The analyst underscored that ARCC’s dividends are well-supported by its core earnings per share and potential net realized gains, making it a reliable income-generating investment.

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Lee is a top-rated analyst, ranking 23rd among over 9,200 analysts tracked by TipRanks, with a 71% success rate and an average return of 18.1% on his recommendations.

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ConocoPhillips (COP): A Resilient Energy Giant

ConocoPhillips, a leading oil and gas exploration and production company, is another attractive dividend stock for 2025. The company recently raised its quarterly dividend by 34% to $0.78 per share, resulting in an annualized yield of 3%. Additionally, ConocoPhillips boosted its share repurchase program by up to $20 billion, signaling confidence in its financial health.

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Mizuho analyst Nitin Kumar upgraded ConocoPhillips to a "buy" rating, raising the price target to $134 from $132. Kumar highlighted the company’s strong combination of long-term inventory, a solid balance sheet, and industry-leading cash returns.

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He noted that the market had already priced in moderate inventory dilution from ConocoPhillips’ acquisition of Marathon Oil. Furthermore, the company has demonstrated optimism in achieving $1 billion in annual synergies from the deal—double its initial estimate. Kumar also highlighted ConocoPhillips’ expectation to keep 2025 capital expenditures below $13 billion, potentially translating to additional free cash flow.

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With its growing liquefied natural gas (LNG) presence and robust commercial marketing business, ConocoPhillips is well-positioned to capitalize on rising global LNG demand and favorable pricing trends.

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Kumar, ranked 336th among TipRanks-tracked analysts, has a 58% success rate and an average return of 12.1% on his stock recommendations.

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Darden Restaurants, the parent company of well-known brands like Olive Garden, LongHorn Steakhouse, and Yard House, has shown strong operational performance. The company recently declared a quarterly dividend of $1.40 per share, representing an annualized yield of approximately 3%.

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Following Darden’s second-quarter fiscal 2025 earnings, which included raised annual sales guidance, BTIG analyst Peter Saleh reiterated a "buy" rating on the stock and increased his price target to $205 from $195. Saleh highlighted management’s ability to leverage multiple strategies to meet full-year guidance, despite challenges such as hurricanes and a Thanksgiving calendar shift.

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Saleh praised the strong performance of Darden’s Olive Garden and LongHorn Steakhouse chains, particularly noting increased visits from lower- and middle-income consumers—a significant turnaround from previous trends. He also pointed out the faster-than-expected rollout of Uber Eats delivery services and narrowing value gaps compared to quick-service restaurants, thanks to Darden’s strategic pricing.

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These factors, coupled with a robust outlook for the second half of fiscal 2025, position Darden as an industry leader delivering consistent earnings growth at an attractive valuation.

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Saleh, ranked 366th on TipRanks, has a 62% success rate and an average return of 11.8% on his stock recommendations.

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Conclusion

As macroeconomic uncertainties loom over 2025, dividend-paying stocks offer a reliable source of income and potential for long-term gains. Ares Capital, ConocoPhillips, and Darden Restaurants stand out as strong picks, thanks to their robust fundamentals, attractive dividend yields, and positive outlooks from top analysts. These stocks provide investors with an opportunity to navigate market volatility while securing steady returns.

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