Top Wall Street analysts pick these dividend stocks for 2025

Major U.S. indices had a good run in 2024, thanks to the buzz around artificial intelligence and interest rate cuts. However, macro uncertainty could weigh on investor sentiment in 2025. In this scenario, investors looking for regular income can consider adding dividend stocks to their portfolios.

Top Wall Street analysts can help investors pick attractive dividend stocks that offer consistent payments, supported by strong 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 with Ares Capital (ARCC), a specialty finance provider that offers financing solutions to private middle-market companies. With a quarterly dividend of 48 cents per share, ARCC stock offers a yield of 8.7%.

In a research note on the 2025 outlook for business development companies (BDC), RBC Capital analyst Kenneth Lee reiterated a buy rating on ARCC with a price target of $23, calling the stock RBC's favorite BDC name for 2025.

"ARCC has a leading position in the BDC space, with benefits from scale, strong originations engine in the Ares direct lending platform (coverage across all MM segments), and ~20 years of experience and solid performance in the space," said Lee.

The analyst highlighted ARCC's ability to offer flexible capital across various financing solutions for clients as differentiating it from its peers. Lee also noted other strengths, including the company's impressive history in managing risks through the cycle, access to the resources of the Ares Credit Group, and scale advantages, given that it is the largest publicly traded BDC by assets.

Lee also emphasized ARCC's dividends, which are backed by the