💴 Dividend stocks for volatile markets

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Top Dividend Stocks for Stability in Volatile Markets

Amid turbulent markets, investors seek dividend stocks that blend income stability with growth potential.

Despite a temporary reprieve from a U.S.-China 90-day tariff reduction agreement, the looming threat of steep tariffs keeps investors cautious. During such times, dividend stocks can prove to be beneficial but picking the right ones can be tricky.

Top Wall Street analysts have identified some names that are likely to offer good returns. We compared all and picked the top three for you. These three are in the same industry (oil and gas), and are likely to offer solid returns with one name offering a yield of 6%.

EOG Resources
EOG Resources, a leading crude oil and natural gas exploration company with reserves in the U.S. and Trinidad, reported strong Q1 2025 earnings that surpassed market expectations.

The company returned $1.3 billion to shareholders, including $538 million in dividends and $788 million in share repurchases, offering a 3.4% dividend yield with a quarterly dividend of $0.975 per share, payable on July 31, 2025.

RBC Capital analyst Scott Hanold, with a 68% success rate and 30% average return, reaffirmed a buy rating with a $145 price target.

Hanold noted EOG’s 3% capital budget cut and 0.6% reduction in organic oil production due to macro uncertainty but raised his free cash flow estimates by 6-7%.

EOG plans to drill 550 wells in core U.S. onshore basins, down from 580, maintaining operational efficiency.

With a $7 billion cash balance and a low-cost structure, Hanold expects EOG to return over 100% of its free cash flow, potentially exceeding $1 billion in Q2 2025, positioning it to navigate oil price volatility effectively.

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Chevron
Chevron, a global oil and gas leader, faced Q1 2025 earnings pressure from lower oil prices, prompting a slower pace of stock buybacks in Q2 amid tariff concerns and OPEC+ supply increases.

The company returned $6.9 billion to shareholders, with $3.9 billion in share repurchases and $3.0 billion in dividends, yielding 4.8% at a quarterly dividend of $1.71 per share.

Goldman Sachs analyst Neil Mehta, with a 59% success rate and 8.8% average return, lowered his price target to $174 from $176 but maintained a buy rating.

Mehta sees long-term value in Chevron’s near-5% yield and strong free cash flow from projects like Tengiz, which hit name-plate capacity early, and growth in the U.S.

Gulf and Permian, where production rose 12% in Q1. Chevron anticipates Gulf of Mexico output reaching 300,000 boe/d by 2026, reinforcing its cash flow outlook.

Chord Energy
Chord Energy, an independent exploration and production company focused on the Williston Basin, delivered robust Q1 2025 results driven by strong well performance, cost control, and reduced downtime.

The company returned 100% of its adjusted free cash flow to shareholders through share repurchases and a base dividend of $1.30 per share, yielding 6.8%.

Siebert Williams Shank analyst Gabriele Sorbara, with a 55% success rate and 20.4% average return, raised his price target to $125 from $121 and reiterated a buy rating.

Sorbara highlighted Chord’s $30 million reduction in 2025 capital expenditure while maintaining production guidance, reflecting operational efficiency. With a low financial leverage ratio of 0.3x and a commitment to return over 75% of free cash flow via dividends and buybacks, Chord Energy remains a top pick for its attractive assets and resilience against commodity price fluctuations.

These stocks, endorsed by top analysts, offer investors a blend of income and growth potential to navigate market volatility.

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Nothing in this newsletter is financial advice. Always do your own research and think for yourself.