Wall Street’s Top Analysts See Strong Upside in These 3 Dividend Stocks

As markets look ahead to 2026, investor attention may gradually rotate away from fixed-income products and toward high-quality dividend stocks. With interest rates expected to remain lower than recent peaks, income-focused equities could become more appealing for investors seeking steady cash flow alongside potential capital appreciation.

‍

That said, identifying the right dividend stocks from a broad universe of income-paying companies is no easy task. One practical approach is to follow the recommendations of top Wall Street analysts, who base their ratings on deep dives into company fundamentals, balance sheets, and long-term growth prospects.

‍

Below are three dividend-paying stocks that stand out, according to leading analysts tracked by TipRanks, a platform that ranks analysts based on the historical accuracy and profitability of their calls.

‍

Chevron

Energy heavyweight Chevron (CVX) kicks off this week’s list of dividend ideas. The oil and gas major returned $6 billion to shareholders during the third quarter, distributing $3.4 billion through dividends and another $2.6 billion via share buybacks. Chevron currently pays a quarterly dividend of $1.71 per share, which translates to an annual payout of $6.84 and a dividend yield of roughly 4.5%.

‍

After meeting with Chevron’s management team, Piper Sandler analyst Ryan Todd reaffirmed his buy rating on the stock and maintained a $178 price target. Adding to the bullish case, TipRanks’ AI Analyst also rates Chevron as an “outperform,” with a price target of $164.

‍

Todd acknowledged that Chevron’s recent performance has been influenced by a challenging crude oil environment, partially offset by strength in refining operations. However, discussions with management reinforced his view that the company remains on solid footing.

‍

According to Todd, Chevron’s capital efficiency is not fully appreciated by the market. He highlighted that the company’s upstream capital spending per barrel of oil equivalent produced is 29% lower than the industry average. Factoring in declining capital expenditures, lower operating costs, unrealized benefits from artificial intelligence initiatives, and a stronger-than-expected resource base, Todd believes Chevron’s projected 10% annual free cash flow growth may actually be conservative.

‍

He also addressed investor concerns around the Tengizchevroil joint venture and longer-term resource depth beyond 2030. Todd suggested these worries may be overstated, noting management’s confidence in additional growth opportunities tied to improved global access, particularly in the Middle East, increased exploration activity, and technology-driven expansion projects.

‍

Todd is ranked No. 868 among more than 10,200 analysts followed by TipRanks. His recommendations have been profitable 58% of the time, with an average return of 8.5%.

‍

Darden Restaurants

Next on the list is Darden Restaurants (DRI), the operator behind well-known dining brands such as Olive Garden, LongHorn Steakhouse, and Yard House. The company recently declared a quarterly dividend of $1.50 per share, payable on February 2, 2026. On an annual basis, that equals $6 per share and a dividend yield of approximately 3.2%.

‍

Following Darden’s mixed second-quarter results for fiscal 2026, BTIG analyst Peter Saleh reiterated a buy rating and set a price target of $225. TipRanks’ AI Analyst also remains constructive, assigning an “outperform” rating with a $218 price target.

‍

Saleh described the quarter as mixed but largely encouraging, pointing to better-than-expected same-store sales driven by stronger guest traffic at Darden’s core brands. He noted that the company’s strategy of pricing below inflation, expanding delivery options, and offering an appealing menu continues to resonate with customers.

‍

That approach has allowed Darden to outperform much of the broader restaurant industry. Still, Saleh acknowledged that elevated beef prices pressured margins and earnings per share during the quarter.

‍

Looking ahead, the five-star analyst is optimistic that Darden can meet its full-year guidance. He expects beef costs to stabilize, labor pressures to ease, and modest price increases to help offset remaining commodity headwinds. While earnings growth has lagged sales momentum so far, Saleh believes profitability should improve over time.

‍

Saleh ranks No. 641 on TipRanks, with 61% of his ratings delivering positive returns and an average gain of 10.5%.

‍

Ares Capital

Rounding out the list is Ares Capital (ARCC), a specialty finance firm that provides direct lending and investment solutions to private middle-market companies. The company recently announced a dividend of $0.48 per share, payable on December 30, 2025. That equates to an annualized dividend of $1.92 per share and a sizable yield of about 9.5%.

‍

In his latest outlook on business development companies, RBC Capital analyst Kenneth Lee named Ares Capital as one of his top BDC picks for 2026. He reaffirmed a buy rating and set a $23 price target. TipRanks’ AI Analyst is even more optimistic, assigning an “outperform” rating with a $24 target.

‍

While Lee is cautious on the broader BDC sector due to the potential for lower net interest income and returns on equity as base rates decline, he remains confident in Ares Capital’s ability to sustain its dividend. He pointed to management’s assurance that current payout levels are well supported, even in a lower-rate environment.

‍

Lee highlighted several strengths, including ARCC’s leading market position, significant scale, robust loan originations through the Ares platform, and more than two decades of industry experience. He added that the company’s dividends are backed by solid core earnings and the potential for net realized gains.

‍

Lee ranks No. 341 among TipRanks analysts, with a 66% success rate and an average return of 11.5%.

‍