12 Most Promising Dividend Stocks According to Wall Street Analysts

Core Insights - The article discusses the increasing appeal of dividend-paying stocks amid rising inflation, prolonged higher interest rates, and market volatility, particularly for risk-averse investors [2][4] Dividend Stock Trends - Global assets under management in dividend-focused ETFs reached nearly $600 billion as of December 31, 2024, more than double the amount recorded in December 2020, indicating a significant rise in dividend investing popularity [3] Methodology for Stock Selection - The article outlines a methodology that involves scanning stocks with consistent dividend records and sustained shareholder payouts, further refining the selection to those with a projected upside potential of over 10% based on analyst price targets as of October 8 [6] Company Profiles Verizon Communications Inc. (NYSE:VZ) - Verizon has a modest revenue growth expectation of about 3% for this year and next, despite adding 278,000 new fixed wireless access subscribers in Q2 2025, bringing the total to over 5.1 million [9][10] - The company generated nearly $9 billion in free cash flow in the first half of 2025, with projections for FY25 free cash flow between $19.5 billion and $20.5 billion, supporting its dividend payments of nearly $12 billion annually and a dividend yield of 6.68% [10][11] PepsiCo, Inc. (NASDAQ:PEP) - PepsiCo has a diversified portfolio contributing about 55% of its revenue, with international operations accounting for roughly 40% of total sales and operating profits in 2024 [13] - The company has raised its dividend for 53 consecutive years, currently offering a quarterly payout of $1.4225 per share, yielding about 4.10% as of October 8 [15] The Sherwin-Williams Company (NYSE:SHW) - Sherwin-Williams has maintained a conservative payout ratio of about 26.6% over the past decade, supported by strong free cash flow [17] - The company has rewarded shareholders with steady dividend increases for 46 consecutive years, paying a quarterly dividend of $0.79 per share, translating to a yield of roughly 0.94% as of October 8 [18]