3 Wall Street Analysts Highlight Dividend Stocks for Income and Growth in Energy Sector

Global stock markets remain volatile amid uncertainty in the Middle East and a focus on artificial intelligence stocks. Investors seeking steady income can bolster their portfolios by adding dividend stocks with attractive yields.

Top Wall Street analysts can help identify stocks that pay regular dividends while offering capital appreciation potential to boost total returns. Here are three dividend-paying stocks recommended by analysts tracked by TipRanks, which ranks professionals based on past performance.

Viper Energy

Viper Energy, a subsidiary of Diamondback Energy, focuses on owning and acquiring mineral and royalty interests, primarily in the Permian Basin. For Q1 2026, the company declared a base dividend of 38 cents per share and a variable dividend of 30 cents per share, offering a dividend yield of 5%.

RBC Capital analyst Scott Hanold initiated coverage of Viper Energy with a buy rating and a $58 price target. “The company is advantaged given its scale, core Permian focus, inventory duration, and aligned operating partner,” Hanold noted.Hanold highlighted that Viper’s Permian-focused asset base and significant scale relative to peers position it as a best-in-class operator. His analysis notes that VNOM’s 75% liquids-weighted production mix provides meaningful leverage in a strong oil price environment.

The analyst projects Viper’s inventory life at 15 to 20 years, significantly exceeding peer averages. He emphasized VNOM’s relationship with Diamondback Energy, which holds approximately 39% ownership, providing visibility into forward activity and production, high-margin organic growth, and steady revenue and cash flows.

Hanold also highlighted Viper’s solid balance sheet, noting the company is investment-grade rated with a lower cost of capital, supporting sustainable distributions and strategic acquisitions. He emphasized the company’s attractive capital returns framework.

Permian Resources

Hanold is also bullish on independent oil and natural gas company Permian Resources, assigning a buy rating to PR stock with a $27 price target. Permian announced a base dividend of 16 cents per share for the second quarter of 2026, offering a 3.2% dividend yield.

In recent research, Hanold updated estimates for Permian Resources, Devon Energy, and Matador Resources following major lease sale acquisitions. While Devon and Matador spent $2.6 billion and $1.1 billion respectively, Permian invested $152 million for 6,634 acres, adding 50-60 net locations.

Hanold noted that Permian’s $152 million investment represents nearly one quarter of annual drilling activity. He expects PR stock to outperform its peer group over the next 12 months, generating peer-leading free cash flow yields to support a solid shareholder-return strategy.

“The company has large, contiguous acreage positions in the core of the southern and northern Delaware Permian, with a 12-15 year inventory, alongside a significant position in the southern Midland Permian,” Hanold highlighted.

Chevron

Oil and gas giant Chevron returned $6 billion to shareholders in the first quarter, including $2.5 billion through share repurchases and $3.5 billion in dividends. With a quarterly dividend of $1.78 per share, CVX stock offers a 3.8% dividend yield.

Mizuho analyst Nitin Kumar reaffirmed a buy rating on Chevron with a $230 price target, raising his 2026 and 2027 oil price projections due to expectations that the U.S.-Iran conflict will keep oil prices elevated longer than Nymex crude impacts.

Kumar highlighted that despite a constructive macro outlook on oil, large-cap oil-focused exploration and production companies, U.S. refiners, and integrated oil companies trade below historical price-to-net-asset-value ranges. He noted that his ratings for upstream and international oil company segments already reflect this “value” opportunity in Chevron, ConocoPhillips, Devon, Diamondback, and Occidental Petroleum stocks.

The analyst noted that debates around Chevron center on inventory depth and long-term upstream volume sustainability without compromising capital efficiency. Kumar highlighted management’s shift toward maximizing free cash flow over growth spending.

He emphasized improved well productivity in the Permian Basin, including surfactant use, which has alleviated investor concerns and boosted confidence in CVX’s plan to sustain plateau production of over 1 million barrels per day through the next decade. Positive factors include the Hess acquisition, adding premium deepwater assets, recent investments in lithium and power businesses, and a strong track record of delivering cash returns to shareholders.

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