Leading Wall Street Experts Favor These 3 Dividend Stocks for Steady Income Potential

 

Source: CNBC, The Texas Instruments Inc. logo appears on scientific calculator packaging in Tiskilwa, Illinois.

Top Analysts Back These 3 Dividend Stocks for Consistent Income Amid Economic Uncertainty

For investors wary of mounting economic headwinds, dividend-paying stocks can offer a layer of reliability and income stability. These equities are particularly attractive during volatile periods, and insights from seasoned Wall Street analysts can guide investors toward high-quality picks.

Below are three dividend-paying stocks that have recently caught the attention of top-ranked analysts on TipRanks, a platform that evaluates analysts based on their historical success.

---

AT&T (T)

Kicking off the list is telecommunications heavyweight AT&T, which recently posted strong first-quarter earnings. Growth in postpaid phone lines and fiber internet subscribers fueled its performance. The company reaffirmed its 2025 outlook and disclosed plans to initiate share repurchases in the second quarter, with its net debt-to-adjusted EBITDA now near its 2.5x target.

AT&T pays a quarterly dividend of $0.2775 per share, equating to an annualized dividend of $1.11 and offering a yield of approximately 4.0%.

RBC Capital’s Jonathan Atkin responded positively to AT&T’s quarterly update, increasing his price target from $28 to $30 and maintaining a Buy rating. He noted the firm beat estimates, even excluding $100 million in one-off EBITDA benefits. According to Atkin, strong wireless and wireline revenue helped the company overcome early-quarter softness and achieve net postpaid phone additions of 324,000, with gross additions rising 13%.

Atkin emphasized management's steady hand during challenging times, pointing to the reaffirmed guidance and upcoming buyback plan. Ranked No. 85 out of over 9,400 analysts on TipRanks, Atkin has a 69% success rate and averages 11.3% returns on his recommendations.

---

Philip Morris International (PM)

Next up is tobacco giant Philip Morris International, which continues its shift from traditional cigarettes to smoke-free alternatives. Its first-quarter 2025 results showed impressive momentum, primarily driven by rising demand for non-combustible products.

The company distributes a quarterly dividend of $1.35, bringing its annualized dividend to $5.40 with a yield of around 3.2%.

Matthew Smith of Stifel maintained a Buy rating on the stock and lifted his price target from $168 to $186, highlighting robust growth across multiple drivers—product mix, pricing power, and volume. PMI’s organic revenue rose 10%, and margins expanded notably.

Smith projected continued margin growth through 2025, spurred by demand for brands like Iqos and Zyn. Zyn’s U.S. sales exceeded expectations in Q1, aided by supply chain improvements. The analyst now forecasts 824 million cans sold in 2025—a 42% increase year-over-year—with capacity projected to hit 900 million, setting the stage for potential upside in the second half.

Smith holds the No. 642 spot among TipRanks analysts, with a 64% success rate and 15% average return on calls.

---

Texas Instruments (TXN)

Rounding out the trio is semiconductor firm Texas Instruments, a leader in analog and embedded processing technologies. Its Q1 2025 earnings outpaced expectations, and its Q2 guidance also beat analyst forecasts—despite tariff-related concerns.

TXN shareholders receive a quarterly dividend of $1.36, totaling $5.44 annually and yielding roughly 3.3%.

Mark Lipacis from Evercore ISI reaffirmed his Buy rating and a $248 price target following TXN’s results, calling the company his top analog semiconductor pick. He acknowledged that some of the performance could stem from preemptive orders ahead of potential tariffs, but said his supply chain checks indicate inventory levels are now abnormally low.

Lipacis believes Texas Instruments is entering a recovery cycle ahead of peers and expects ongoing earnings surprises through 2026. He also anticipates significant free cash flow growth, projecting a jump from a trailing 12-month low of $1 to $10.30 by 2027 as capital expenditures decline.

Ranked No. 69 on TipRanks, Lipacis has a 58% success rate and delivers an average return of 20.4%.

---

Bottom Line

Dividend stocks can provide a buffer in turbulent times, especially when backed by solid fundamentals and analyst confidence. AT&T, Philip Morris, and Texas Instruments each offer compelling dividend yields along with bullish support from Wall Street pros, making them worth considering for income-focused portfolios.