Want to achieve a stable cash flow? Wall Street's top analysts have identified these three dividend stocks with the highest dividend yield reaching 8.5%.
During a period of intertwined geopolitical tensions and macroeconomic uncertainties, high dividend stocks that can bring stable returns to investors have caught the attention of Wall Street.
During a period of political tension and macroeconomic uncertainty for GEO Group Inc, dividend-paying stocks can provide investors with a stable investment portfolio return.
In this regard, stocks recommended by top Wall Street analysts are worth paying attention to. These companies are able to generate stable cash flows, providing strong support for continued dividend payments, making their stocks attractive.
According to data from TipRanks, a platform that ranks analysts based on their past performance, the following are three dividend stocks recommended by three top Wall Street experts.
Permian Resources
Permian Resources (PR.US) is an independent oil and gas company with assets focused on the Permian Basin, and its core assets are located in the Delaware Basin core area. The company's current base dividend is 15 cents per share, with an annualized dividend of 60 cents per share and a dividend yield of 4.3%.
In a recent research report, Siebert Williams analyst Gabriele Sorbara reiterated a "buy" rating on Permian Resources stock with a target price of $19. He stated, "The company has continued its outstanding operational execution, with a recent focus on the fourth quarter of 2025. The implied oil production guidance for that quarter is approximately 187,400 barrels per day, with capital expenditures of $484.6 million." TipRanks' AI analyst also gave the stock a "outperform" rating with a target price of $16.
Sorbara also mentioned that Permian Resources remains committed to rewarding shareholders through a quarterly dividend of 15 cents per share and opportunistic share repurchases. It is noteworthy that the company has been authorized to repurchase up to $1 billion, with no expiration date. This five-star analyst expects the company to raise dividends next year and beyond.
Additionally, Sorbara expects the company to release its outlook for 2026 in February, which will finalize a plan to adapt to the current commodity prices and cost environment. He believes Permian Resources will benefit in 2026 from several positive factors, including lower drilling costs, increased production bases in the second half of last year, stable operating strength, and better price gouging from recent transactions. These positive factors are expected to drive improvements in the company's production efficiency, capital expenditures, and free cash flow.
Furthermore, Sorbara mentioned that the company is working to further strengthen its balance sheet, aiming for a long-term net debt-to-EBITDA ratio of 0.5 to 1.0 times. Additionally, Permian Resources holds $500 million to $1 billion in cash, enabling it to successfully execute capital allocation strategies such as acquisitions, buybacks, and debt reduction even when WTI crude oil prices are in the $35 to $40 per barrel range.
Among more than 10,400 analysts tracked by TipRanks, Sorbara ranks 522nd. His success rate in recommendation is 52%, with an average return of 15.4%.
IBM
Tech giant IBM (IBM.US) distributed a total of $1.6 billion in dividends to shareholders in the third quarter of 2025. IBM's current quarterly dividend is $1.68 per share, with an annualized dividend of $6.72 per share and a dividend yield of 2.2%.
Recently, Jefferies analyst Brent Thill upgraded IBM's stock rating from "hold" to "buy" with a target price of $360, up from $300. The reason is that "the path for the company's software business to accelerate growth is becoming clearer, fundamentals are improving, and the current valuation has not fully reflected the premium on its software business." TipRanks' AI analyst also gave the stock an "outperform" rating with a target price of $354.
This five-star analyst noted that management has a more optimistic outlook on key growth areas, including technology transformation and rapid application of AI, which is expected to drive widespread demand. Thill pointed out that improvements in regulatory and tax policies, steady organic software growth, synergies from recent acquisitions, and key victories in generative AI consulting also support management's optimistic expectations.
It is worth noting that the synergy effects from the acquisition of HashiCorp and the pending Confluent (CFLT.US) transaction are expected to accelerate the company's software growth rate in 2026, with the growth rate at the end of 2025 expected to be slightly below 10%. Thill also expects that due to the increased proportion of software businesses and operational discipline, IBM's profit margin will continue to improve (with pretax profit margin expected to increase from 19% in 2025 to 21% in 2027).
The current trading multiple for IBM's stock based on the estimated price-to-earnings ratio for 2027 is 26 times, while the average multiple for large software companies is 35 times. Thill believes that its valuation is attractive and points out that the market has not fully taken into account the expectations of the software business re-accelerating growth, therefore there is still room for the stock price to rise.
Among more than 10,400 analysts tracked by TipRanks, Thill ranks 539th. His success rate in recommendations is 61%, with an average return of 11%.
Kinetik Holdings
Kinetik Holdings (KNTK.US) is a midstream energy company with its business focus also in the Delaware area of the Permian Basin. The company's current quarterly cash dividend is 78 cents per share, with an annualized dividend of $3.12 per share and a dividend yield of 8.5%.
On January 5th, Raymond James analyst Justin Jenkins upgraded Kinetik's stock rating from "hold" to "buy" with a target price of $46. In comparison, TipRanks' AI analyst gave the stock a "neutral" rating with a target price of $34.
Jenkins stated, "The stock has fallen by about 38% over the past 12 months. The significant pullback in the stock price is the core basis of our investment thesis as investor focus shifts to 2026-2027, where operational visibility will increase, and current valuation still reflects significant market doubts."
Jenkins believes that as the earnings prospects for 2026 to 2027 become clearer, Kinetik's risk-return ratio is becoming more attractive. The improvement in earnings expectations is due to the Kings Landing project generating a more significant full-year contribution and improved system connectivity with the expected operation of the ECCC pipeline in the second quarter of 2026.
The analyst's optimism also stems from the acidic gas injection project that the company plans to launch by the end of 2026. This project will increase the processing capacity for sulfur-rich natural gas, alleviating production constraints in the Delaware Basin system. Jenkins also expects that several macro and operational factors influencing the performance in 2025 (including price conditions in the Waha region and additional production related to the expansion of Permian dry gas) will improve in the middle of 2026.
Based on a valuation of approximately 8 times the enterprise value to EBITDA ratio before depreciation and amortization for 2027, this valuation is at the lower end of the midstream industry valuation range of 8 to 12 times, Jenkins believes Kinetik's stock is attractive. Especially after selling its equity interest in EPIC Crude Holdings, LP, the company's balance sheet is more robust. Interestingly, Jenkins suggests that Kinetik may be an acquisition target for midstream companies looking to integrate more natural gas liquids production in the Permian Basin.
Among more than 10,400 analysts tracked by TipRanks, Jenkins ranks 63rd. His success rate in recommendations is high at 74%, with an average return of 17.1%.
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