Top Analysts Favor Three Dividend Stocks for Reliable Income

As uncertainty in the economy and ongoing trade tensions continue to create volatility in the stock market, many investors are seeking refuge in dividend-paying stocks. These stocks can provide a steady income, making them attractive options in fluctuating market conditions.

For those searching for reliable dividend investments, insights from leading Wall Street analysts can be quite helpful. Here are three dividend-paying stocks that have recently caught the attention of top analysts.

Vitesse Energy

The first stock highlighted is Vitesse Energy (VTS), a unique player in the energy sector. Vitesse primarily invests in oil and gas wells operated by prominent companies, without being the main operator itself. Recently, Vitesse completed the acquisition of Lucero Energy, a move anticipated to boost dividends and enhance liquidity for future acquisitions.

In its latest quarterly report, Vitesse declared a dividend of $0.5625 per share, increasing from the previous quarter by 7%. VTS currently offers a notable dividend yield of 9.3%.

Following this report, analyst Lloyd Byrne from Jefferies reaffirmed a buy rating on VTS, setting a price target of $33. He mentioned that while the Q4 earnings before interest, taxes, depreciation, and amortization (EBITDA) slightly missed expectations, Vitesse's plan to increase dividends post-acquisition aligns with its growth strategy. The acquisition of Lucero is expected to add significant production and extend the company’s operational longevity in the Bakken region. Byrne believes this strategic shift could ultimately give Vitesse more control over its capital and lead to new opportunities.

Viper Energy

The next company is Viper Energy (VNOM), a subsidiary of Diamondback Energy that focuses on mineral and royalty interests primarily in oil-rich regions such as the Permian Basin. Viper plans to distribute a base cash dividend of 30 cents and a variable cash dividend of 35 cents per share for Q4 2024, amounting to a total capital return of 65 cents per share.

Recently, analyst Arun Jayaram from JPMorgan reiterated a buy rating for VNOM but adjusted the price target down to $51. He acknowledged challenges in the energy market that could impact prices but highlighted Viper's unique structure as a major advantage, allowing it to return 75% of its cash flow to shareholders. With a strong relationship with Diamondback Energy, Viper's prospects remain positive, and Jayaram sees a compelling total return potential through both dividend and capital growth.

ConocoPhillips

Finally, analyst Arun Jayaram also has a favorable view of ConocoPhillips (COP), reaffirming a buy rating but lowering the price target to $115 due to concerns about potential declines in oil prices. ConocoPhillips has declared a dividend of 78 cents per share for the first quarter of 2025, yielding approximately 3.1%.

Since its strategy shift in 2016, ConocoPhillips has positioned itself as a leader in exploration and production, executing key counter-cyclical transactions that have improved its cost structure and inventory durability. Jayaram noted that ConocoPhillips should be able to increase its cash returns to shareholders, including anticipated share buybacks of $6 billion in 2025. He regards COP as a solid core holding within the exploration and production sector, displaying resilience in portfolio strength and a robust dividend framework.

In summary, these three stocks—Vitesse Energy, Viper Energy, and ConocoPhillips—stand out among dividend-paying companies, offering enticing opportunities for investors seeking stability and income in uncertain times.

dividends, stocks, income