Wall Street analysts back three dividend stocks for steady income

With major U.S. equity indexes expected to remain volatile in the coming months, several top-ranked Wall Street analysts are pointing investors to dividend-paying companies that combine reliable cash distributions with resilient fundamentals. The latest research highlights Archrock, Brookfield Infrastructure Partners and Permian Resources as attractive options for income seekers.

Archrock’s balance sheet supports higher payouts

Archrock, Inc. operates natural-gas compression assets throughout the United States. For the second quarter the company declared a dividend of $0.21 per share, up 11 percent from the prior quarter. At the current annualized rate of $0.84, the stock yields about 3.3 percent.

Mizuho analyst Gabriel Moreen, rated five stars by research-tracking platform TipRanks, reiterated a buy recommendation and lifted his price target to $32. He cited “exceptional balance-sheet flexibility” that enabled Archrock to repurchase $28.8 million in shares while expanding capital spending. Moreen now forecasts dividends per share of $0.83 in 2025, $0.93 in 2026 and $1.02 in 2027, implying annual growth of 20 percent, 12 percent and 10 percent, respectively.

The analyst said demand for new compression equipment remains solid despite fluctuations in natural-gas markets, allowing Archrock to raise adjusted EBITDA guidance for a second straight quarter.

Brookfield Infrastructure accelerates U.S. growth

Brookfield Infrastructure Partners L.P. owns and operates long-life assets in utilities, transport, midstream and data infrastructure. The partnership recently announced a quarterly distribution of $0.43 per unit, 6 percent higher than a year earlier, giving the units a forward yield near 5.6 percent.

Jefferies analyst Sam Burwell resumed coverage with a buy rating and a $35 price objective. He pointed to three U.S. acquisitions completed since April — a stake in Colonial Pipeline, a rail-car leasing portfolio from GATX and the Hotwire fiber-to-home business — that strengthen Brookfield’s midstream, transport and data segments. Burwell projects funds from operations to compound at roughly 9 percent through 2027, supporting distribution growth of about 6.5 percent a year.

While Brookfield’s asset base spans multiple regions, the analyst views the shift toward North American deals and the sale of non-core assets abroad as a positive step that could simplify the story ahead of the company’s investor day in 2025.

Permian Resources targets higher free cash flow

Permian Resources Corporation focuses on oil and natural-gas development in the Delaware Basin portion of the Permian Basin. The company declared a third-quarter base dividend of $0.15 per share, translating to an annualized payout of $0.60 and a yield of approximately 4.3 percent.

Goldman Sachs analyst Neil Mehta reaffirmed a buy rating and a $17 price target, noting that Permian is integrating assets acquired from APA Corp. while pursuing smaller bolt-on deals. New transportation and marketing agreements are expected to add more than $50 million in incremental free cash flow in 2026 compared with 2024. Mehta added that the company’s low leverage allows management to fund growth, repurchase shares and reduce debt without compromising the dividend.

The analyst believes opportunistic acquisitions of high-quality drilling locations will help sustain long-term shareholder returns even if crude-oil prices remain unpredictable.

Dividend strategies stand out in uncertain markets

September has historically been the weakest month for U.S. equities, and many strategists anticipate further swings as macroeconomic conditions evolve. According to data compiled by Reuters, the S&P 500 has posted an average decline of roughly 1 percent during the month over the past 50 years. Against that backdrop, companies with visible cash flows and a record of raising distributions continue to draw analyst support.

Archrock, Brookfield Infrastructure Partners and Permian Resources illustrate how diverse business models — from natural-gas compression to global infrastructure to shale production — can all deliver consistent income when backed by disciplined capital allocation and robust balance sheets. While dividends are never guaranteed, the latest analyst reports suggest these three names are well positioned to maintain or increase payouts even if broader market volatility persists.

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Image credit: Georgina Mccartney / Reuters