Top Wall Street analysts recommend these dividend stocks for higher returns

Investors can benefit by creating a diversified portfolio of growth and dividend stocks, enhancing their overall returns through capital appreciation and regular income.

With the Federal Reserve slashing interest rates by another 25 basis points, several investors are looking for lucrative dividend picks as the attractiveness of these stocks increases in a lower interest rate environment. To this end, investors can track the recommendations of top Wall Street analysts to select reliable dividend stocks with solid fundamentals.

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

We start this week with big-box retailer Walmart (WMT), which has raised its dividend for 51 consecutive years. Last month, the company reported better-than-expected third-quarter results and raised its full-year outlook. The stock has a dividend yield of 0.9%.

Recently, Tigress Financial analyst Ivan Feinseth reiterated a buy rating on WMT stock and increased the price target to $115 from $86. The analyst highlighted that the company continues to win market share in the U.S., with both groceries as well as general merchandise categories, especially among upper-income families.

Feinseth also noted that Walmart is capitalizing on generative artificial intelligence and machine learning to improve the customer shopping experience, both in-store and online. In this regard, the analyst mentioned the company’s generative AI-powered shopping assistant — currently in its beta test phase — that will help customers select products based on their unique needs.

The analyst pointed out that Walmart is also leveraging technology and automation to improve its operating efficiency, as well as build its supply chain and fulfillment capabilities to reduce costs and drive higher profitability.

Feinseth also mentioned Walmart’s other strengths, such as continued growth in e-commerce, solid brand equity, increase in Walmart+ memberships, and advertising growth. The analyst sees further upside potential in the stock and added that “WMT also enhances shareholder returns through ongoing dividend increases and share repurchases.”

Feinseth ranks No. 190 among more than 9,200 analysts tracked by TipRanks. His ratings have been profitable 62% of the time, delivering an average return of 14.4%. See Walmart Stock Buybacks on TipRanks.

This week’s next dividend stock is Gaming and Leisure Properties (GLPI), a real estate investment trust (REIT) that leases properties to gaming operators under triple-net lease arrangements. In a triple-net lease arrangement, in addition to rent, tenants are responsible for all costs related to the leased assets, including facility maintenance and insurance.

GLPI announced a dividend of 76 cents per share for the fourth quarter, reflecting a 4.1% year-over-year increase. GLPI offers an attractive yield of 6.5%.

In a recent research note on the net lease REITs space, RBC Capital analyst Brad Heffern highlighted that GLPI is a part of RBC’s “Top 30 Global Ideas” list. Heffern has a buy rating on GLPI stock with a price target of $57.

The analyst expects GLPI’s investment pipeline worth over $2 billion to contribute significantly to future growth, as capitalization rates for the deals in the pipeline were mostly negotiated during a higher rate environment. Consequently, if rates come down, then Heffern expects gaming capitalization rates to be “more sticky” than other categories in the net lease space, which would help in sustaining higher spreads.

Moreover, GLPI recently entered into a $110 million term loan facility with the Ione Band of Miwok Indians to fund the tribe’s new casino development near Sacramento. This marks the company’s entry into the attractive tribal gaming space, with the possibility of additional acquisitions acting as a potential catalyst for GLPI stock.

The analyst also highlighted other positives like GLPI’s strong balance sheet, the probability of an enhanced credit rating and attractive valuation, given the company’s high-quality cash flows.

Heffern ranks No. 815 among more than 9,200 analysts tracked by TipRanks. His ratings have been successful 47% of the time, delivering an average return of 9.7%. See GLPI Ownership Structure on TipRanks.

Finally, let’s look at Ares Management (ARES), an alternative investment manager that offers investment solutions across asset classes like real estate, credit, private equity and infrastructure. Last month, the company announced a quarterly dividend of 93 cents per share for its Class A common stock, payable on Dec. 31. ARES offers a dividend yield of 2.1%.

As part of a broader research note on U.S. asset managers, RBC Capital analyst Kenneth Lee increased the price target for ARES stock to $205 from $185 and reiterated a buy rating. Heading into 2025, Lee called ARES his “favorite name” in the U.S. asset managers sector, given its dominance in the private credit space.

Moreover, the analyst expects Ares Management to gain from favorable trends in several markets like private wealth and global infrastructure. Lee also highlighted that he boosted the price targets for ARES and the stocks of several other asset managers to reflect better macro conditions and the possibility of lower corporate taxes under President-elect Donald Trump’s administration.

Overall, optimism about “potential resiliency in ARES’s fundraising momentum” and the company’s asset-light model coupled with high return-on-equity supports Lee’s bullish outlook on the stock.

Lee ranks No. 19 among more than 9,200 analysts tracked by TipRanks. His ratings have been profitable 73% of the time, delivering an average return of 18.8%. See Ares Management Stock Charts on TipRanks.