Three dividend stocks chosen by top Wall Street analysts for increased returns.

The past week has seen the major averages fluctuate due to macroeconomic concerns and geopolitical tensions affecting investor sentiment.

Investors seeking stability may want to turn to dividend-paying stocks.

Analysts can assess the long-term growth potential of dividend-paying companies by analyzing their financials and following Wall Street's recommendations.

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

Enterprise Products Partners

This week's first dividend stock is (EPD), a midstream energy services provider that has increased its cash distribution for 25 consecutive years at a compound annual growth rate of 7%.

On May 14, Enterprise Products will distribute $0.515 per unit as a quarterly cash payment, representing a 5.1% year-over-year increase. EPD's stock provides an enticing dividend yield of 7.1%.

RBC Capital analyst Elvira Scotto maintained a buy rating on EPD stock with a price target of $35 after the company's investor update call earlier this month. The analyst stated that the call reinforced her belief that the company is well-positioned to benefit from its organic growth initiatives, which are expected to be implemented through 2026.

The Mentone West 2 natural gas processing plant in the Delaware is one of the company's organic projects, which are primarily focused on the Permian Basin, where the company anticipates consistent growth for at least another 10 years.

The analyst believes that EPD's growth investments will be supported by its robust operations and financial position, and she anticipates a mid-single-digit increase in the company's distributions.

Scotto stated that EPD is comfortable with returning 55-60% of its adjusted CFO to investors through distributions and buybacks.

Among more than 8,700 analysts tracked by TipRanks, Scotto ranks No. 84. Her ratings have been profitable 64% of the time, with each delivering an average return of 17.8%. (See EPD Technical Analysis on TipRanks)

Goldman Sachs

One of the top U.S. investment banks, (GS), reported better-than-expected first-quarter results due to increased trading and investment banking revenue. The bank's strong capital market performance was a key factor in its solid performance.

In the first quarter, Goldman Sachs distributed $2.43 billion of capital to shareholders through share repurchases worth $1.5 billion and dividends of $929 million. The bank declared a dividend of $2.75 per share, payable on June 27. GS stock offers a dividend yield of 2.7%.

Stephen Biggar, an analyst at Argus, upgraded his rating for Goldman Sachs from hold to buy, with a price target of $465. He stated that the impressive Q1 print demonstrated the considerable strengths of the Goldman franchise during an investment banking upturn.

Despite some false rebounds in the investment banking industry in 2023, the analyst believes that the current recovery has the potential to continue. His optimism is supported by the positive sequential improvement in the equity and debt underwriting business. Additionally, the analyst is encouraged by the high-teens year-over-year growth in industrywide announced M&A deal value in the first quarter.

Biggar anticipates that these factors will lead to increased revenues in the second half of 2024. He pointed to data from the Securities Industry and Financial Markets Association, which shows a significant year-over-year increase in capital formation in Q1 2024. Specifically, IPO issuance increased by 239%, while secondary issuance surged by 110% in the first quarter.

Among more than 8,700 analysts tracked by TipRanks, Biggar ranks No. 603. His ratings have been profitable 60% of the time, with each delivering an average return of 11.8%. (See Goldman Sachs Stock Buybacks on TipRanks)

Cisco Systems

In the second quarter of fiscal 2024, Cisco Networking Equipment Corporation (CSCO) repaid a total of $2.8 billion to its shareholders through share buybacks and dividends of 39 cents per share.

Cisco declared a 3% increase in its dividend to 40 cents per share, starting in April 2024. The stock's dividend yield is 3.3%.

On April 15, Bank of America Securities analyst Tal Liani upgraded Cisco Systems to buy from hold and raised the price target to $60 from $55, citing valuation and three catalysts: AI-related tailwinds, growth in the security business, and synergies from the recently completed Splunk acquisition.

Liani stated that we anticipate Networking to become standardized and experience renewed growth due to Cisco's increased market share in Ethernet-based AI deployments in hyperscalers.

The analyst believes that the next two quarters will remain under pressure, but he thinks that Wall Street's expectations are already fully reflected in management's guidance.

Liani anticipates the expansion of the company's security business, fueled by the stabilization of the firewall market and the release of new products.

Liani ranks 532nd among more than 8,700 analysts on TipRanks, with a successful rating rate of 55% and an average return of 10.9% for each rating. (See Cisco Ownership Structure on TipRanks)