These dividend stocks are preferred by top Wall Street analysts for portfolio strengthening.

By reducing interest rates by 50 basis points, the Federal Reserve has created a favorable environment for stocks that pay dividends.

Analysts' recommendations and in-depth analysis can aid investors in selecting dividend stocks that can increase total returns through passive income and stock price appreciation.

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

Northern Oil and Gas

The first dividend stock of the week is (NOG), a non-operated energy asset owner that acquires minority interests in multiple basins operated by leading operators.

In October, NOG declared a 42 cent dividend per share, representing a 11% yearly increase. The company's dividend yield is 4.8%.

William Janela, a Mizuho analyst, recently gave a buy rating to NOG stock with a price target of $47. He believes that NOG's extensive scale, diversification, and growing shift toward co-purchase deals have created a unique business model that preserves the benefits of non-operatorship while mitigating some of the typical drawbacks.

Janela emphasized other benefits such as increased cash operating margins and a successful M&A history, making NOG an attractive investment. He mentioned that the company provides high returns through its above-average base dividend yield and growing share buybacks.

Janela argues that NOG's unique scale and diversification across significant U.S. basins and operators provide it with financial flexibility, allowing it to actively invest in the industry, challenging the traditional notion that non-operators are passive investors/tools.

Among more than 9,000 analysts tracked by TipRanks, Janela ranks No. 567. His ratings have been profitable 53% of the time, delivering an average return of 22.6%. (See NOG Ownership Structure on TipRanks)

Darden Restaurants

The next dividend stock is (DRI). Despite the company's lower-than-expected results for the first quarter of fiscal 2025, shares rose after the announcement. The company maintained its full-year guidance and announced its partnership with .

In Q1 FY25, Darden repurchased 1.2 million shares for $172 million and paid out $166 million in dividends. With a quarterly dividend of $1.40 per share (annualized dividend of $5.60), DRI stock provides a dividend yield of 3.3%.

Peter Saleh, a BTIG analyst, maintained a buy rating on DRI stock and increased the price target from $175 to $195. He attributed the increase to multiple sales drivers, including promotions, price point advertising, and the Uber Eats partnership, which are expected to significantly boost same-store sales at the Olive Garden chain.

This fall, Uber Eats will launch a pilot program for delivery at approximately 100 Olive Garden locations. Saleh anticipates that the partnership will result in a mid-single-digit comparable sales benefit in the long run. In Q1 FY25, the company's comparable sales growth turned positive across all brands, except Fine Dining, in September, despite unexpected industry weakness in July.

Despite the current market conditions, Saleh maintains a positive outlook on DRI stock due to its position as a top industry player with a track record of steady earnings growth at a favorable price.

Among more than 9,000 analysts tracked by TipRanks, Saleh ranks No. 422. His ratings have been profitable 62% of the time, delivering an average return of 10.7%. Check out DRI Stock Buybacks on TipRanks.

Target

This week, Target Corporation (TGT) is the third dividend pick. In June, the company announced a 1.8% increase in its quarterly dividend to $1.12 per share, marking its 53rd consecutive year of dividend increases. The stock provides a dividend yield of 2.9%.

In the fiscal second quarter of 2024, Target reported better-than-expected results despite macroeconomic challenges. The company paid out $509 million in dividends and bought back shares worth $155 million during this period.

Corey Tarlowe, a Jefferies analyst, reaffirmed a buy rating on TGT stock with a price target of $195 after the recent appointment of Jim Lee as Target's new CFO. Tarlowe is optimistic about the new CFO's potential to strengthen the company's food and beverage focus, given his experience at PepsiCo.

Tarlowe observed that the company's commentary during the Q2 earnings call highlighted food and beverage as a category that drives traffic. He noted that the company's price reduction on nearly 5,000 items over the summer resulted in higher unit and dollar sales. With the appointment of Lee as the new CFO, Tarlowe sees the potential for additional price cuts and increased volumes. He also anticipates that TGT's margins will improve under Lee's leadership.

Tarlowe is optimistic about TGT's future despite short-term pressures. He highlighted the company's successful investments in pricing, omnichannel, and stores, resulting in solid returns and share growth.

Tarlowe ranks 319th among over 9,000 analysts on TipRanks, with a profitable rating 67% of the time and an average return of 17.1%. (Check out TGT Stock Charts on TipRanks)