Top Wall Street Analysts Recommend Three Dividend Stocks for Reliable Income

Dividend Stocks Gain Favor Amid Market Volatility

With major stock indices expected to experience heightened volatility due to macroeconomic uncertainties, and September historically being the weakest month for U.S. equities, investors are increasingly turning to dividend-paying stocks for consistent income streams. Leading Wall Street analysts have identified three compelling dividend stocks with strong fundamentals and growth potential, as tracked by TipRanks.

Archrock (AROC): Energy Infrastructure with Dividend Growth

Archrock, specializing in midstream natural gas compression, recently raised its quarterly dividend by approximately 11% to 21 cents per share, translating to an annualized yield of 3.3%. Mizuho analyst Gabriel Moreen reaffirmed his buy rating on Archrock, raising the price target slightly to $32, citing the company’s exceptional balance sheet flexibility. This financial strength supports capital returns, increased spending, and dividend growth.

Moreen projects dividend per share increases of 20%, 12%, and 10% for fiscal years 2025 through 2027, respectively. Archrock also raised its adjusted EBITDA guidance for the second consecutive quarter, signaling strong operational momentum despite some one-time items. The company’s aggressive capital expenditure plans reflect robust demand amid ongoing market volatility.

Brookfield Infrastructure Partners (BIP): Diversified Assets with Strategic Growth

Brookfield Infrastructure Partners, a global owner of diversified infrastructure assets including utilities, transport, midstream, and data sectors, offers a dividend yield of 5.6%, with a recent 6% year-over-year quarterly distribution increase. Jefferies analyst Sam Burwell resumed coverage with a buy rating and a $35 price target, highlighting three significant U.S.-focused acquisitions in 2025 that enhance BIP’s midstream, transport, and data businesses.

Burwell anticipates a nearly 9% compound annual growth rate in funds from operations (FFO) and a 6.5% distribution growth CAGR through 2027. He notes that BIP’s investor day could provide clarity on recent transactions, aiming to address the market’s previous uncertainty despite the stock’s stagnant performance in recent years.

Permian Resources (PR): Oil and Gas with Cash Flow Focus

Permian Resources, operating primarily in the Delaware Basin, declared a third-quarter dividend of 15 cents per share, yielding 4.3% annually. Goldman Sachs analyst Neil Mehta maintained a buy rating with a $17 price target, emphasizing the company’s operational ramp-up through acquisitions and new transportation and marketing agreements expected to boost free cash flow by over $50 million in 2026 compared to 2024.

Mehta remains optimistic despite oil price uncertainties, citing PR’s cost optimization, strong balance sheet, and strategic capital allocation priorities, including share repurchases and debt reduction. He believes the company’s strategy of acquiring high-quality assets and grassroots expansions will drive long-term shareholder value.

Conclusion

In a market environment marked by volatility and historical seasonal weakness, dividend-paying stocks like Archrock, Brookfield Infrastructure Partners, and Permian Resources present viable options for investors seeking steady income and growth. Backed by top-tier analyst recommendations and solid fundamentals, these companies offer diversified exposure to energy and infrastructure sectors with promising dividend trajectories.