Inflation data, earnings reports and tensions in the Middle East have been influencing the market. In this volatile backdrop, investors seeking income can bolster their portfolios by adding dividend-paying stocks.
The recommendations of top Wall Street analysts can help inform investors in their search for attractive stocks from the vast universe of dividend-paying companies. These experts assign ratings after analyzing a company's financials and ability to consistently pay dividends while also seeking capital appreciation.
Here are three dividend-paying stocks that are highlighted by Wall Street's top pros, as tracked by TipRanks, a platform that ranks analysts based on their past performance.
Exxon Mobil
Integrated oil and gas giant Exxon Mobil has increased its dividends for 43 consecutive years. At a quarterly dividend of $1.03 per share (annualized dividend of $4.12), XOM stock offers a yield of 2.6%.
In his latest research report on energy players, Morgan Stanley analyst Devin McDermott reiterated a buy rating on Exxon Mobil stock and increased his price target to $177 from $168.
The analyst raised his free cash flow estimates to reflect Q2 guidance and the oil price strip, with the largest increase noted for integrated players due to higher refining margins. Notably, the five-star analyst raised his cash flow estimates by an average of 20% for the second half of 2026 and 7% for 2027.
McDermott highlighted that while pure-play refiners have rallied on stronger margins, integrated energy stocks have lagged, creating relative-value opportunities in major North American integrated producers, including Exxon Mobil, Suncor and Cenovus Energy.
Overall, McDermott is bullish on Exxon Mobil, as he expects the company to deliver strong earnings and cash flow growth, driven by robust upstream volumes, high-value projects in Product Solutions, and more than $5 billion of additional structural cost savings.
"XOM's large global integrated operations and strong balance sheet (0.0x 2027 net leverage) make it a clear defensive play in an uncertain macro backdrop," said McDermott.
McDermott ranks No. 726 among more than 12,490 analysts tracked by TipRanks. His ratings have been profitable 59% of the time, delivering an average return of 9.80%.
Expand Energy
Moving on to natural gas producer Expand Energy. The company announced a quarterly base dividend of $0.575 per share to be paid on Sept. 3. At an annualized dividend of $2.30 per share, EXE offers a yield of about 2.3%.
Recently, Goldman Sachs analyst Neil Mehta reaffirmed a buy rating on Expand Energy stock and increased his price target to $113 from $99. Mehta attributed his higher price target to cash flow improvement and a strong outlook for shareholder returns. He also cited the stock's attractive valuation, with an 11% free cash flow, or FCF, yield based on his 2027/2028 estimates compared with the peer average of 9%.
The five-star analyst expects Expand Energy to generate FCF per share of about $10 in FY28, up from the prior estimate of about $8 at his mid-cycle price forecast of $3.50/MMBtu Henry Hub. Mehta raised his FCF estimate to reflect an improved outlook for share repurchases, operational efficiencies, and gas pricing realizations.
Furthermore, the analyst expects the recently announced $1.25 billion Twin Eagle acquisition to enhance the competitive positioning of the combined business to expand to premium markets and capture incremental deals in the power and LNG end markets.
Mehta ranks No. 449 among more than 12,490 analysts tracked by TipRanks. His ratings have been successful 64% of the time, delivering an average return of 12.1%.
Diamondback Energy
Mehta is also bullish on Diamondback Energy, an independent oil and natural gas company focused on energy reserves that are primarily in the Permian Basin in West Texas. The company recently paid a base cash dividend of $1.10 per share for the second quarter of 2026. FANG stock offers a dividend yield of 2.2%.
Mehta increased his price target on FANG stock to $220 from $212 and reiterated a buy rating, citing the company's capital-efficient volume growth as oil prices remain high amid persistent supply disruption in the Middle East.
"We remain constructive on FANG, a high-quality, pure-play Permian Basin operator that continues to drive incremental capital efficiencies and strong well productivity relative to peers," said Mehta.
Also, the analyst said that the removal of a minimum return of capital commitment gives Diamondback more flexibility in taking capital allocation decisions amid high oil price volatility and macro uncertainty.
Mehta added that Diamondback sees a favorable environment for production growth, driven by the potential need for global inventory restocking. He highlighted that during Q2 2026, FANG's production volumes of 1,018 Mboe/d exceeded the high end of the company's guidance, driven by a stronger-than-expected natural gas output from Barnett development and improved downstream gas marketing.
