The stock market is dealing with volatility driven by geopolitical tensions in the Middle East and questions about the staying power of the artificial intelligence boom. For investors looking for steadier ground, Wall Street analysts are pointing to dividend-paying stocks as one way to generate consistent income during uncertain times.
According to a report by CNBC, three dividend stocks have drawn attention from top-ranked analysts as tracked by TipRanks, a platform that measures analyst performance based on historical accuracy.
The first pick is Phillips 66, a downstream energy company trading under the ticker PSX. The company pays a quarterly dividend of $1.27 per share, which works out to an annualized dividend of $5.08 and a yield of roughly 2.25%. Phillips 66 recently posted solid second-quarter earnings, a result partly driven by the Middle East conflict, which tightened global supplies and pushed refining margins higher.
Following those results, TD Cowen analyst Jason Gabelman reaffirmed a buy rating on Phillips 66 and raised his price target to $255 from $240. The increase reflects higher earnings expectations for 2026 and lower projected interest expenses in the coming year. Gabelman pointed to a meaningful quarter-over-quarter reduction in the company's net debt and noted that management expressed confidence in hitting its $15.5 billion net debt target a full year ahead of schedule. Gabelman projects the company will close 2026 with net debt of $14.6 billion.
"The [balance sheet] improvement could re-establish PSX as a go-to defensive refiner," said Gabelman.
Phillips 66 management acknowledged that the company's payout ratio has lagged year-to-date but said it expects share buybacks to increase in the second half of the year. Gabelman also noted that Phillips indicated the possibility of a larger dividend increase after two consecutive years of 5% annual hikes. Gabelman ranks 554th among more than 12,400 analysts tracked by TipRanks. His ratings have been profitable 66% of the time, with an average return of 14.9%.
The second stock flagged by top analysts is Crescent Energy, an exploration and production company focused on operations in the Eagle Ford, Permian, and Uinta Basins. The company trades under the ticker CRGY. Earlier this month, Crescent reported better-than-expected second-quarter earnings and announced a quarterly dividend of $0.12 per share, payable on August 31. At an annualized rate of $0.48 per share, the stock carries a dividend yield of around 4%.
Evercore analyst Stephen Richardson reaffirmed a buy rating on Crescent Energy following the Q2 results and kept his price target at $18. Richardson pointed to continued strength in the company's output, with second-quarter oil production and cash flow both beating Wall Street expectations.
"CRGY's cash flow exceeded expectations by 10%, reinforcing its trajectory of capital efficiency," said Richardson.
Richardson also noted that Crescent raised its full-year oil production guidance, crediting the effective integration of prior acquisitions. The higher guidance signals that management expects operational momentum to carry through the remainder of 2026.
The broader context for these picks matters. Volatility has become a persistent feature of the current market environment. Concerns about whether the AI-driven rally in technology stocks can be sustained have created uncertainty across sectors. At the same time, the ongoing conflict in the Middle East continues to inject unpredictability into energy markets, which has had mixed effects depending on the type of energy company involved. Downstream refiners like Phillips 66 have benefited from tighter global supply conditions, while exploration and production companies like Crescent Energy have gained from sustained oil demand.
TipRanks tracks more than 12,400 analysts and ranks them based on the accuracy and profitability of their past calls. The platform is designed to help individual investors separate analyst recommendations with a strong track record from those with weaker histories. Both Gabelman and Richardson carry five-star ratings on the platform, meaning their past performance places them among the higher-ranked voices in their respective coverage areas.
For investors weighing where to put money in a market that has grown harder to read, dividend stocks offer one concrete advantage: they generate income regardless of short-term price swings. Whether that income holds depends on each company's ability to maintain cash flow and sustain its payout, factors that both analysts addressed directly in their most recent notes.
The next visible marker for Phillips 66 investors will be any formal announcement on the size of its next annual dividend increase. For Crescent Energy holders, the next dividend payment is scheduled for August 31.
