The tariffs put in place during the Trump era have sent ripples throughout the global markets, unsettling investors and prompting them to reassess their strategies in a quest for stability in their portfolios. In these turbulent times, one way for investors to secure steady income is by focusing on dividend stocks that are trading at appealing levels. Insights from top Wall Street analysts can be invaluable in identifying dividend stocks that reliably deliver payouts, thanks to strong cash flow backing.
Let’s delve into three dividend-paying stocks spotlighted by leading Wall Street experts on TipRanks, a platform renowned for ranking analysts based on their past performance.
Rithm Capital
Kicking off the list is Rithm Capital (RITM), a global asset manager with a keen focus on real estate, credit, and financial services. Rithm has optimized its operations to qualify as a real estate investment trust (REIT) for federal income tax purposes. Recently, the company declared a first-quarter dividend of 25 cents per share. Since its inception in 2013, it has disbursed approximately $5.8 billion in dividends. RITM currently boasts a dividend yield of about 8.9%.
RBC Capital analyst Kenneth Lee, following recent virtual discussions with Rithm’s management, reaffirmed a buy rating on RITM stock with a target price of $13. “We like RITM’s strategic pivot towards becoming an alternative investment manager with a focus on a fee-based, capital-light business model,” Lee commented. He further noted that management aims to transform Rithm into an alternative investment manager over a typical mortgage REIT, which could unlock substantial future potential. However, the exact timeline for this shift remains uncertain as they seek to ensure that the transition adds value.
Lee highlighted management’s deliberation over restructuring Rithm Capital to establish a C-corp at the top level, following the example of other publicly traded alternative asset managers. Furthermore, they are contemplating the listing or spin-off of Newrez, a mortgage origination platform, which could allow RITM to redirect capital from mortgage service rights into other investments while granting Newrez more operational independence.
Ranked 28th among over 9,400 analysts tracked by TipRanks, Lee’s recommendations have been profitable 70% of the time, generating an average return of 17.5%. You can explore more about Rithm Capital’s ownership structure on TipRanks.
Darden Restaurants
Next on the roster is Darden Restaurants (DRI), known for chains like Olive Garden and LongHorn Steakhouse. The company recently posted third-quarter fiscal 2025 earnings that surpassed expectations, although it fell short on revenue due to unfavorable weather conditions. Darden has announced a quarterly dividend of $1.40 per share, offering a 2.8% dividend yield.
After the third-quarter earnings release, JPMorgan analyst John Ivankoe reiterated his buy rating on DRI stock, raising the price target to $218 from $186. He advises seizing more Darden stock during volatile periods, as “the potential for headline trend acceleration and margin expansion remains clear.”
Ivankoe pointed out that quarter-to-date comparable sales for the fourth quarter of fiscal 2025 are exceeding 3% at Olive Garden and LongHorn, contributing positively to Darden’s overall performance. The analyst anticipates operating margin growth, expecting it to rise from 12.1% in fiscal 2025 to 12.3% by fiscal 2028, driven partly by higher-than-average Olive Garden comparable sales.
Darden’s fiscal 2025 outlook remains robust, supported by strategic initiatives such as the reintroduction of its "Buy One, Take One" offer at $14.99 to attract customers. Additional highlights include the systemwide adoption of Uber Direct at qualifying Olive Garden locations and a pilot program at Cheddar’s, with further rollout plans in place.
Ivankoe is ranked 241st among TipRanks’ pool of over 9,400 analysts, with his ratings achieving success 66% of the time, delivering an average return of 13.5%. Check out the hedge fund trading activity related to Darden Restaurants on TipRanks.
Enterprise Products Partners
Enterprise Products Partners L.P. (EPD), a provider of midstream energy services, is another dividend stock endorsed by top analysts. For the fourth quarter of 2024, EPD declared a cash distribution of $0.535 per unit, reflecting a 3.9% increase year-over-year. EPD presents a dividend yield of 6.4%, marking its 26th consecutive year of distribution growth, supported by a distributable cash flow that covers declared distributions 1.7 times over.
RBC Capital analyst Elvira Scotto maintains a buy rating on EPD, with a price target set at $37. Her analysis incorporates EPD’s fourth-quarter results and updates from their 10-K filing. "EPD remains well-positioned thanks to its extensive growth project backlog and emerging opportunities," Scotto remarked.
EPD’s project backlog has expanded from $6.9 billion to $7.6 billion, primarily driven by new initiatives related to Permian gathering and processing. Scotto expects this backlog to drive higher cash flows, leading to increased distributions or stock buybacks.
Moreover, Scotto is optimistic about EPD’s consistent cash flows and solid balance sheet, with a target leverage ratio of around 3.0, allowing the company the financial freedom to support planned growth expenditures and pursue further opportunities. She views EPD as a core holding, combining both offensive and defensive investment characteristics.
Scotto holds the 11th position among TipRanks’ extensive list of over 9,400 analysts, with a 71% success rate and an average return of 20.6%. You can find detailed stock charts for Enterprise Products Partners on TipRanks.
