In 2024, major U.S. indices experienced growth driven by enthusiasm for artificial intelligence and interest rate cuts. However, macroeconomic uncertainties may impact investor sentiment in 2025. For those seeking regular income, dividend stocks are worth considering. Three dividend-paying stocks endorsed by top Wall Street analysts are Ares Capital (ARCC), ConocoPhillips (COP), and Darden Restaurants (DRI).
Ares Capital, a specialty finance company, offers a quarterly dividend of 48 cents, yielding 8.7%. Analyst Kenneth Lee from RBC Capital views ARCC as a leader in the business development sector, praising its scale and risk management.
ConocoPhillips recently raised its quarterly dividend by 34% to 78 cents, providing a 3% yield. Analyst Nitin Kumar from Mizuho upgraded the stock, highlighting the company’s strong balance sheet and expected synergies from a recent acquisition, which could boost cash flow.
Darden Restaurants, operating brands like Olive Garden, announced a quarterly dividend of $1.40, yielding about 3%. BTIG analyst Peter Saleh reiterated a buy rating, noting positive sales trends and an effective management strategy.
These three companies offer solid dividend yields and growth potential, making them attractive options for income-focused investors.
