These dividend-paying stocks are highly recommended by top Wall Street analysts.

Since the presidential election, the major averages have been on a sharp upward trend. However, investors looking to safeguard their portfolio from future market fluctuations may want to consider adding dividend stocks.

To choose the best dividend stocks, investors can take into account the advice of top Wall Street analysts, who have a proven track record and offer valuable insights through a comprehensive analysis of a company's financials.

Three dividend-paying stocks recommended by Wall Street's top pros on TipRanks, a platform that ranks analysts based on their past performance.

Enterprise Products Partners

This week's first dividend pick is (EPD), a midstream energy services provider. In the third quarter of 2024, EPD declared a distribution of $0.525 per unit, representing a 5% year-over-year increase. EPD provides a high yield of 6.9%.

In Q3 2024, EPD repurchased $76 million worth of its common units, in addition to enhancing shareholder returns.

RBC Capital analyst Elvira Scotto maintained a buy rating on the stock with a price target of $36 after EPD's Q3 results. The analyst pointed out that the company's Q3 earnings before interest, tax, depreciation and amortization of $2.442 billion were in line with Wall Street and RBC's estimates, with increased natural gas marketing contributions offsetting a decline in the margins of the octane enhancement business and crude oil marketing.

EPD's organic growth projects, including notable ones set to launch next year, will drive the company's growth, according to Scotto. Additionally, the analyst predicts that the acquisition of Pinon Midstream will benefit the company.

Scotto stated that the company's steady cash flow and strong balance sheet, with a financial leverage target of +/- 3.0x, can comfortably handle the spend and drive meaningful long-term growth.

Among more than 9,100 analysts tracked by TipRanks, Scotto ranks No. 20. Her ratings have been profitable 70% of the time, delivering an average return of 21.6%. Check out EPD Stock Buybacks on TipRanks.

International Business Machines

IBM, the tech giant, recently reported mixed results for the third quarter. While earnings exceeded analysts' estimates, the top line fell short of expectations as the solid growth in Software revenues was partially offset by lower Consulting and Infrastructure revenues.

In Q3, IBM earned $2.1 billion in free cash flow and paid out $1.5 billion in dividends to its shareholders. IBM's dividend yield is currently 3.1%.

After meeting with IBM management, Evercore analyst Amit Daryanani maintained a buy rating on IBM stock with a price target of $240. The analyst expressed a more optimistic outlook on the company's long-term growth and its role as a key facilitator of hybrid IT and AI technologies following the meetings.

Daryanani believes that IBM can capitalize on the AI opportunity in both its Software and Consulting businesses. He pointed out that IBM's AI revenue has grown to over $3 billion, a 100% increase from the previous quarter, with 80% of the revenue coming from the Consulting business.

IBM's Software business is expected to maintain its strength, thanks to the continued growth of Red Hat, transaction processing, AI/data solutions, and mergers and acquisitions. Additionally, the Consulting business is predicted to recover next year.

Daryanani believes that IBM will thrive under CEO Arvind Krishna's leadership. He is optimistic that the company will achieve higher profit growth than revenue due to its increasing Software mix, operating scale, and cost optimization efforts.

Daryanani ranks 316th among more than 9,100 analysts on TipRanks, with a 58% success rate and an average return of 12.3%. Check out IBM Hedge Fund Activity on TipRanks.

Ares Capital

ARCC, a specialty finance company, reported solid third-quarter results due to strong new investment activity and healthy credit performance.

ARCC stock provides a dividend yield of 8.9% for the fourth quarter, with a payout of 48 cents per share on Dec. 30.

Kenneth Lee, an RBC Capital analyst, maintained a buy rating on ARCC's stock and increased the price target from $22 to $23. The analyst's optimistic outlook is supported by ARCC's history of managing risks, strong dividends, and scale advantages.

Lee reduced his EPS estimates for 2024 from $2.39 to $2.36 and for 2025 from $2.17 to $2.13, taking into account reduced yield and dividend income assumptions. Despite this, he remains optimistic about the company's prospects due to its strong credit performance and lower risk owing to a favorable macroeconomic environment.

Lee pointed out that ARCC's portfolio activity exceeded expectations, with Q3 recording net additions of over $1.32 billion, significantly higher than RBC's forecast of over $800 million. Additionally, he noted that the company's credit performance improved, with non-accruals decreasing to 1.3% in Q3 from 1.5% in the previous quarter.

Lee believes that ARCC has the potential to provide higher returns on equity than its peers and considers its size as a competitive advantage.

Among more than 9,100 analysts tracked by TipRanks, Lee ranks No. 34. His ratings have been profitable 70% of the time, delivering an average return of 17.2%. Check out the ARCC stock charts on TipRanks.