As we enter 2026, against a backdrop of declining interest rates, investor focus is likely to shift from fixed-income instruments toward attractive dividend-paying stocks. Selecting the right targets from the vast universe of dividend-paying companies is no easy task, but analyst stock picks can help investors make informed choices. The following are three dividend stocks highly recommended by top Wall Street analysts.

Chevron (CVX.US), the oil and gas giant, is the first dividend stock pick. In the third quarter, the company returned $6 billion to shareholders through $3.4 billion in dividends and $2.6 billion in share repurchases. With a quarterly dividend of $1.71 per share (an annualized dividend of $6.84 per share), Chevron offers a yield of approximately 4.5%. Following a meeting with Chevron's management, Piper Sandler analyst Ryan Todd reaffirmed a "Buy" rating on Chevron with a price target of $178. Todd noted that while the current unfavorable crude oil backdrop and favorable refining environment have impacted Chevron's performance, his meeting with management reflected the company's solid positioning. The analyst believes Chevron's capital efficiency is undervalued. Notably, the company's upstream capital expenditure per barrel of oil equivalent (boe) production is 29% lower than the peer average. He added that Chevron's projected 10% annual free cash flow (FCF) growth seems conservative, considering declining capital expenditures and operating expenses, unrealized AI benefits, and a better-than-expected resource base. Furthermore, Todd argued that "while investors may continue to worry about contract extensions for joint ventures, concerns about insufficient resource depth post-2030 are misleading." On this point, the analyst noted that beyond the company's officially planned projects, management is optimistic about additional opportunities from improved global access (particularly in the Middle East), increased exploration activity, and prospects driven by expansion and technology.

Darden Restaurants (DRI.US), the restaurant company, boasts a portfolio of brands including Olive Garden, LongHorn Steakhouse, and Yard House. The company recently announced a quarterly dividend of $1.50 per share, payable on February 2, 2026. With an annualized dividend of $6 per share, DRI offers a yield of 3.2%. Following the company's mixed fiscal 2026 second-quarter results, BTIG analyst Peter Saleh reaffirmed a "Buy" rating on Darden stock with a price target of $225. Saleh noted that Darden reported a mixed but "mostly positive" quarter, with better-than-expected same-store sales driven by improved traffic at its main brands. "Its strategy of pricing below inflation, tilting towards off-premise sales, and offering compelling menus has resonated with guests, driving another quarter of significant outperformance versus the industry," Saleh stated. The analyst highlighted that high beef prices remained a headwind, weighing on restaurant margins and earnings per share (EPS) for the quarter. Nonetheless, Saleh is optimistic about Darden's ability to meet its guidance, as beef costs appear to have peaked, labor cost pressures are easing, and management is leaning slightly on price increases to offset commodity costs. Overall, Saleh remains impressed with Darden's sales momentum and expects profit growth to improve in the future, even if it hasn't kept pace yet.

Ares Capital (ARCC.US) is a specialty finance company focused on providing direct loans and other investments to private middle-market companies. The company declared a dividend of $0.48 per share, payable on December 30, 2025. With an annualized dividend of $1.92 per share, ARCC stock offers a substantial yield of 9.5%. In a recent research report on the Business Development Company (BDC) sector, RBC Capital analyst Kenneth Lee named Ares Capital as one of his top BDC picks for 2026, reaffirming a "Buy" rating with a $23 price target. Although Lee is less positive on the BDC sector overall heading into 2026, as potential declines in benchmark rates could lead to lower net interest income (NII) and return on equity (ROE), he remains bullish on Ares Capital. He specifically mentioned that management is confident in maintaining the current level of dividend distribution despite expectations for lower benchmark rates. Highlighting key strengths, Lee pointed to ARCC's leadership in the BDC market, its large scale, and the strong asset origination capabilities of the Ares direct lending platform. He also emphasized Ares Capital's over 20 years of experience. "In our view, ARCC's dividend is well supported by core earnings per share generation capacity as well as potential net realized gains," Lee stated, supporting his bullish view.