Dividend investors are still chasing a difficult mix: steady income and the chance for share-price upside. www.cnbc.com says Wall Street’s top-rated analysts are pointing to three names that try to deliver both.
The group includes Permian Resources, Valero Energy and Ovintiv, each with a dividend and a case built on balance-sheet strength, portfolio quality or operating flexibility. The appeal is not just the payouts themselves, but the possibility that fundamentals can support higher valuations over time.
| Company | Dividend | Yield | Analyst View |
|---|---|---|---|
| Permian Resources (PR) | 16 cents quarterly, 64 cents annualized | 3.5% | Evercore’s Chris Baker sees free cash flow growth potential and a higher multiple |
| Valero Energy (VLO) | $1.20 quarterly, $4.80 annualized | About 2% | Goldman Sachs’ Neil Mehta raised his target and stayed constructive on refining conditions |
| Ovintiv (OVV) | 30 cents quarterly, $1.20 annualized | 2.3% | RBC’s Gregory Pardy sees a valuation rerating opportunity over time |
1. Permian Resources
Permian Resources, an independent oil and natural gas company, recently paid a quarterly base cash dividend of 16 cents per share. That works out to an annualized dividend of 64 cents per share and a yield of 3.5%.
Evercore analyst Chris Baker initiated coverage with a price target of $25 and said the company is positioned to benefit from improving U.S. shale demand after the Iran conflict. He pointed to low-breakeven inventory, disciplined consolidation in the Permian Basin and management’s focus on the higher-return Northern Delaware Basin.
Baker described the business as an “acquire and exploit model,” arguing that the market underappreciates a strategy built on buying and developing new high-quality assets rather than relying on a limited inventory. He ranks No. 862 among more than 12,300 analysts tracked by TipRanks, with a 75% success rate and an average return of 48.3%.
2. Valero Energy
Valero Energy manufactures and markets petroleum-based and low-carbon liquid transportation fuels and petrochemical products. The company pays a quarterly dividend of $1.20 per share, or $4.80 annually, for a yield of about 2%.
Goldman Sachs analyst Neil Mehta reiterated a buy rating on the stock ahead of second-quarter earnings on July 30 and raised his price target to $286 from $283. He also lifted his 2026 and 2027 EPS estimates to $31.42 and $23.07 from $29.42 and $21.06, while leaving 2028 EPS at $20.37.
Mehta said Valero remains attractive despite a strong year-to-date rally because of a more positive refining outlook, possible estimate revisions and its strong position in the Gulf Coast. He also cited a solid balance sheet, low-cost operations and premium asset portfolio and crude slate optionality as factors that could support capture rates and shareholder returns.
3. Ovintiv
Ovintiv is a North American oil and natural gas producer with positions in the Permian and the Montney. It pays a quarterly dividend of 30 cents per share, or $1.20 annually, which implies a 2.3% yield.
RBC Capital analyst Gregory Pardy reaffirmed a buy rating and set a $70 price target after meeting with management. He said the stock remains on RBC’s Global Energy Best Ideas List and highlighted the company’s deep Montney position, streamlined portfolio, strong balance sheet and enhanced shareholder returns.
Pardy said Ovintiv’s shift from six basins to two, the Montney and Permian, has improved inventory depth. He also pointed to the $3 billion sale of Anadarko Basin assets as part of the company’s broader transformation.
Among the three names, the common theme is clear: these are not just dividend payers, but energy companies where analysts see a path to better cash flow, stronger returns and, in some cases, a higher valuation. That combination is what keeps them on income investors’ watchlists.