Top Wall Street analysts suggest these 3 dividend stocks for enhanced total returns

The focus on dividend stocks is growing, as the U.S. Federal Reserve announced another rate cut. Investors can consider stocks that offer dividends and also have the potential to drive capital appreciation, enhancing the total return.

In this regard, recommendations of top Wall Street analysts can help us identify stocks that have solid upside and pay attractive dividends. The stock picks of these experts are backed by in-depth analysis of a company’s growth opportunities and ability to pay dividends consistently.

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 Valero Energy (VLO), a manufacturer of petroleum-based and low-carbon liquid transportation fuels and petrochemical products. In Q3 2025, Valero returned $1.3 billion to stockholders via $351 million in dividends and $931 million in share repurchases. On Oct. 29, Valero declared a quarterly dividend of $1.13 per share. At an annualized dividend of $4.52, VLO stock offers a yield of 2.7%.

Valero Energy recently reported upbeat Q3 results, backed by strong refining margins. Keeping in view the Q3 performance, strong refining outlook, and the company’s attractive capital returns strategy, Goldman Sachs analyst Neil Mehta reiterated a buy rating on VLO stock and raised his 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,” said Mehta.

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 differentials. Mehta also highlighted that Valero’s non-refining businesses performed better than Goldman Sachs’ expectations. Looking ahead, Mehta believes that low inventories, resilient demand, and limited net refining capacity additions support tighter supply/demand expectations for 2026.

In particular, Mehta noted management’s continued focus on capital returns and commitment to allocating excess free cash flow to shareholders. The analyst expects a stronger refining backdrop to contribute to meaningful free cash flow generation, which could support about $4.6 billion of capital returns in 2026, implying a 9% capital return yield.

Mehta ranks No. 812 among more than 10,000 analysts tracked by TipRanks. His ratings have been profitable 58% of the time, delivering an average return of 8.7%.

We move 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 pharmacy sales and digital business. On October 14, Albertsons announced a quarterly dividend of 15 cents per share, payable on November 7. At an annualized 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 Feinseth reiterated a buy rating on ACI stock and modestly increased 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 highlighted that Albertsons is transforming from a traditional grocery operator into a data‑driven, digitally integrated food and wellness platform. This change is being fueled by the company’s e-commerce expansion, loyalty integration, and rapidly expanding Albertsons Media Collective advertising 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 increased more than 13% year-over-year in Q2 FY25, reaching over 48 million active participants. The growing member base boosts ACI’s business as members transact more frequently, spend more, and are increasingly using cross-channel rewards, noted Feinseth.

Additionally, Feinseth highlighted that Albertsons is enhancing shareholder returns through ongoing dividend increases and share repurchases, including the recently announced additional $750 million accelerated share repurchase authorization. He expects ACI stock to deliver a total return of close to 50%, including dividends.

Feinseth ranks No. 296 among more than 10,000 analysts tracked by TipRanks. His ratings have been profitable 62% of the time, delivering an average return of 14.2%.

Finally, let’s look at energy infrastructure provider Williams Companies (WMB). On October 28, Williams announced a quarterly cash dividend of 50 cents per share, payable on December 29, 2025, and reflecting a 5.3% year-over-year increase. At an annualized dividend of $2 per share, WMB stock offers a 3.5% yield.

Ahead of Williams’ Q3 results scheduled after the market closes on November 3, RBC Capital analyst Elvira Scotto reiterated a buy rating on WMB stock with a price forecast of $75. In a preview on the Q3 results of the companies in the U.S. midstream space, Scotto stated that Williams and Targa Resources (TRGP) are her favored names into the earnings.

Scotto noted that the secular tailwind for natural gas due to rising power demand for electrification and artificial intelligence (AI)/data center growth is driving the need for more energy infrastructure. The 5-star analyst believes that among the stocks within her coverage, “WMB is best positioned to benefit given its gas transmission asset footprint and its Power Innovation projects.”

Furthermore, Scotto expects WMB to deliver a CAGR (compound annual growth rate) of about 10% in its EBITDA (earnings before interest, taxes, depreciation, and amortization) from 2025 through 2030. The analyst looks forward to additional information on WMB’s recently announced Power Innovation projects and any new projects. Scotto expects an uptick in Q3 2025 numbers on a quarter-over-quarter basis across all business segments, with Transmission, Gulf, and Power driving the biggest absolute increase.

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

Scotto ranks No. 270 among more than 10,000 analysts tracked by TipRanks. Her ratings have been successful 64% of the time, delivering an average return of 13.7%.