These 3 dividend stocks are recommended by top Wall Street analysts.

By incorporating dividend stocks into their portfolios, investors can increase their regular income stream.

To make it easier for investors to choose the best dividend-paying stocks from the vast universe of options, the opinions of top analysts can be valuable in guiding their investment decisions.

According to TipRanks, which ranks analysts based on their past performance, here are three attractive dividend stocks recommended by Wall Street's top experts.

Energy Transfer

This week's first dividend stock is (ET), a master limited partnership (MLP) that operates more than 125,000 miles of pipeline and related energy infrastructure in the midstream energy sector.

Energy Transfer declared a Q4 2023 quarterly cash distribution of $0.3150 per common unit, representing a 3.3% year-over-year increase. This translates to an annualized distribution per unit of $1.26, resulting in an attractive yield of 8.4% for ET stock.

Stifel analyst Selman Akyol maintained a buy rating on ET stock with a price target of $18 per share after the company's fourth-quarter results. The analyst highlighted that the Q4 2023 earnings before interest, taxes, depreciation and amortization exceeded Wall Street's expectations, with the company forecasting 2024 adjusted EBITDA between $14.5 billion and $14.8 billion.

Akyol pointed out that ET is currently operating within its leverage range's lower end, with management stating that the company could continue to reduce its debt to maintain cash reserves, allowing it to pursue more M&A deals. Regarding the Crestwood acquisition, management anticipates achieving annual synergies of $80 million by 2026, with $65 million expected in 2024.

Akyol stated that management plans to consider expanding its distribution and conducting opportunistic buybacks after generating more than $1 billion in free cash flow (FCF) from ET in 2024.

Among more than 8,700 analysts tracked by TipRanks, Akyol ranks No. 396. His ratings have been successful 67% of the time, with each generating an average return of 6.9%. Check out the Energy Transfer Stock Charts on TipRanks.

Garmin

The auto and fitness businesses contributed to GRMN's better-than-anticipated fourth-quarter earnings and solid guidance, impressing investors.

Garmin declared a quarterly dividend of 73 cents per share, payable on March 29. Additionally, the company will propose a 2.7% increase in dividend payment to 75 cents per share at its annual shareholders meeting in June. Garmin also announced a new share repurchase program of up to $300 million through December 2026. The GRMN stock currently provides a dividend yield of 2.1%.

Ivan Feinseth, a financial analyst at Tigress, recently maintained a buy rating on GRMN stock and increased the price target from $165 to $175. Feinseth highlighted the company's Q4 2023 and full-year revenue growth due to strong demand for its advanced smart wearables, new product launches, and the auto OEM business's momentum.

The analyst pointed out that the company's robust financials allow it to invest in new product development, make strategic acquisitions, and increase shareholder returns. Additionally, the company is increasing its investment in automotive product development by partnering with prominent auto players and introducing new automotive specialty products.

"GRMN's diverse product offerings and top-of-the-line products make it well-positioned to capitalize on emerging opportunities across all its major markets, including Aviation, Automotive, Fitness, Marine, and Outdoor activities," he stated.

Feinseth is ranked No. 233 among over 8,700 analysts on TipRanks, with a successful rating rate of 61% and an average return of 12.1% per rating. (Check out Garmin Insider Trading Activity on TipRanks)

Target

This week's third dividend pick is (TGT), which exceeded expectations in its fourth-quarter revenue and earnings, despite ongoing macroeconomic pressures affecting its retail business. Despite the challenging economic climate, the company is concentrating on enhancing its profitability by optimizing its inventory management and streamlining its operations.

Target's quarterly dividend of $1.10 per share is a 1.9% year-over-year increase and provides a dividend yield of 2.6%. For 52 consecutive years, Target has raised its dividends.

Jefferies analyst Corey Tarlowe, impressed by TGT's Q4 results, reiterated a buy rating on the stock and increased the price target from $170 to $195. Tarlowe noted that the retailer's Q4 revenue was boosted by a 10% increase in other revenue, driven by strong growth in advertising. The analyst expects further growth, as Target continues to expand its advertising business.

While Target slightly exceeded Q4 revenue expectations, the company's operating margin beat of nearly 100 basis points impressed investors more. The analyst is optimistic about Target's progress in inventory management, shrink reduction, and in-store and supply chain efficiencies.

Tarlowe believes that Target has a promising future and predicts that the company will have a clean inventory position and will be able to capitalize on temporary margin headwinds, resulting in margin recapture opportunities.

Among more than 8,700 analysts tracked by TipRanks, Tarlowe holds the 399th position. His ratings have been successful 67% of the time, with each generating an average return of 17%. (See Target Ownership Structure on TipRanks)