Top Wall Street analysts recommend these 3 dividend stocks for increased total returns

Focus on dividend stocks increased as the US Federal Reserve announced another rate cut. Investors may consider stocks that offer dividends and also have the potential to drive capital appreciation, boosting overall returns.

In this regard, recommendations from top Wall Street analysts can help us identify stocks that have solid growth and pay attractive dividends. These experts’ stock picks are backed by a thorough analysis of the company’s growth opportunities and ability to pay dividends consistently.

Here are three dividend-paying stocks highlighted by top Wall Street pros tracked by TipRanks, a platform that ranks analysts based on their past performance.

We start this week with Valero Energy (VLO), producer of petroleum-based and low-carbon liquid transportation fuels and petrochemicals. In the third quarter of 2025, Valero returned $1.3 billion to shareholders through $351 million in dividends and $931 million in share repurchases. On October 29, Valero declared a quarterly dividend of $1.13 per share. With an annual dividend of $4.52, VLO stock offers a yield of 2.7%.

Valero Energy recently reported upbeat third-quarter results underpinned by strong refining margins. Given the company’s third-quarter performance, strong refining outlook and attractive capital return strategy, Goldman Sachs analyst Neil Mehta reiterated a buy rating on VLO stock and raised its price target to $197 from $180.

“We continue to view VLO as a key beneficiary of our more constructive refining outlook given the company’s balance sheet strength, low-cost operations and operational execution,” Mehta said.

The 5-star analyst noted that during the third-quarter earnings call, management discussed a constructive refining outlook driven by limited net capacity additions and widening crude oil differentials. Mehta also emphasized that Valero’s non-refining business was performing better than Goldman Sachs’ expectations. Looking ahead, Mehta believes low inventories, resilient demand and limited added net refining capacity support a tighter supply/demand outlook for 2026.

In particular, Mehta noted management’s continued focus on return on capital and commitment to distributing excess free cash flow to shareholders. The analyst expects a stronger refining environment to help generate meaningful free cash flow that can support about $4.6 billion in return on capital in 2026, implying a 9% return on capital.

Mehta is ranked No. 812 among the more than 10,000 analysts tracked by TipRanks. Its ratings are profitable 58% of the time, delivering an average return of 8.7%.

Moving on to the next dividend paying stock, Albertsons Companies (ACI). The food and drug retailer recently announced upbeat results for the second quarter of fiscal 2025, driven by strong sales in its pharmacy and digital businesses. On October 14, Albertsons announced a quarterly dividend of 15 cents per share, payable on November 7. With an annual dividend of 60 cents per share, ACI stock offers a dividend yield of 3.3%.

Following Albertsons’ better-than-expected fiscal second-quarter results, Tigress Financial analyst Ivan Feinsett reiterated his buy rating on ACI stock and slightly raised his price target to $29 from $28. The analyst is bullish on Albertsons as the company “accelerates growth through AI-powered digital sales, expanding loyalty ecosystem and high-margin retail media platform.”

Feinseth emphasized that Albertsons is transforming from a traditional grocery operator to a data-driven, digitally integrated food and wellness platform. That shift is being fueled by the company’s e-commerce expansion, loyalty integration and the rapidly expanding Albertsons Media Collective ad network, which Feinseth believes is well-positioned to become one of its most profitable long-term growth engines.

The top-rated analyst pointed out that ACI’s For U loyalty program is driving both digital engagement and spending growth. In fact, For U membership grew by more than 13% year-on-year in Q2 FY25, reaching over 48 million active participants. A growing member base is driving ACI’s business as members transact more often, spend more and increasingly use cross-channel rewards, Feinseth noted.

Feinseth also emphasized that Albertsons is enhancing shareholder returns through continued dividend increases and share repurchases, including the recently announced additional authorization of $750 million in accelerated share repurchases. He expects ACI shares to deliver a total return of nearly 50%, including dividends.

Feinseth is ranked #296 among more than 10,000 analysts tracked by TipRanks. Its ratings are profitable 62% of the time, delivering an average return of 14.2%.

Finally, let’s look at the energy infrastructure provider Williams Companies (WMB). On Oct. 28, Williams announced a quarterly cash dividend of 50 cents per share, payable on Dec. 29, 2025, representing a 5.3% year-over-year increase. With an annual dividend of $2 per share, WMB stock offers a 3.5% yield.

Ahead of Williams’ third-quarter results, scheduled after the market close on Nov. 3, RBC Capital analyst Elvira Scotto reiterated a buy rating on WMB stock with estimated cost of $75. In a preview of third-quarter results from companies in the U.S. midstream space, Scotto said Williams and Targa Resources ( TRGP ) were her preferred names in earnings.

Scotto noted that the headwinds for natural gas due to increasing electricity demand for electrification and artificial intelligence (AI)/data center growth are driving the need for more energy infrastructure. The 5-star analyst believes that among the stocks in its coverage, “WMB is best positioned to benefit given its footprint in gas transmission assets and its energy innovation projects.”

Additionally, Scotto expects WMB to deliver a CAGR (compound annual growth rate) of around 10% in its EBITDA (earnings before interest, taxes, depreciation and amortization) from 2025 to 2030. The analyst looks forward to further information on WMB Power Innovation’s recently announced projects and any new projects. Scotto expects growth in numbers in the third quarter of 2025 on a quarter-on-quarter basis across all business segments, with Transmission, Gulf and Power delivering the largest absolute increase.

Scotto sees WMB’s February analyst day as the next catalyst for the stock. The analyst expects WMB to increase its EBITDA growth target from the 5% to 7% range to high single digits or more.

Scotto ranks No. 270 among more than 10,000 analysts tracked by TipRanks. Its assessments are successful 64% of the time, providing an average return of 13.7%.