The Federal Reserve recently cut interest rates by 50 basis points, setting a favorable backdrop for dividend-paying stocks.

Wall Street analysts' recommendations and in-depth analysis can help investors choose dividend stocks that can enhance total returns with passive income and stock price appreciation.

Here are three dividend stocks, highlighted by Wall Street's top pros on TipRanks, a platform that ranks analysts based on their past performance.

Northern Oil and Gas

This week's first dividend stock is Northern Oil and Gas (NOG), a non-operated, upstream energy asset owner. It acquires minority interests in assets across multiple basins operated by leading operators.

In August, NOG announced a dividend of 42 cents per share, payable on Oct. 31. This dividend marked an 11% year-over-year increase. NOG offers a dividend yield of 4.8%.

Recently, Mizuho analyst William Janela initiated a buy rating on NOG stock with a price target of $47. He thinks that the combination of NOG's extensive scale, diversification and a growing shift toward co-purchase deals has "created a unique business model, preserving the benefits of non-operatorship while mitigating some of the typical drawbacks."

Janela also highlighted other advantages like higher cash operating margins and a solid M&A track record, which make NOG a compelling investment. He pointed out that the company offers attractive cash returns via its above-average base dividend yield and growing share buybacks.

Coming to the debate on whether NOG's non-operator business is attractive compared to operator exploration and production players, Janela contends that NOG's differentiated scale and diversification across major U.S. basins and operators give it capital flexibility. Such flexibility supports NOG's active investment approach, defying the historical view that non-operators are passive investors/vehicles.

Janela ranks No. 567 among more than 9,000 analysts tracked by TipRanks. His ratings have been profitable 53% of the time, delivering an average return of 22.6%. (See NOG Ownership Structure on TipRanks) 

Darden Restaurants

The next dividend stock is Darden Restaurants (DRI). The company recently announced lower-than-expected results for the first quarter of fiscal 2025. However, shares jumped after the results, as the company maintained its full-year guidance and announced its partnership with Uber.

Coming to shareholder returns, Darden repurchased about 1.2 million shares for $172 million in Q1 FY25 and paid $166 million in dividends. With a quarterly dividend of $1.40 per share (annualized dividend of $5.60), DRI stock offers a dividend yield of 3.3%.

Following the print, BTIG analyst Peter Saleh reaffirmed a buy rating on DRI stock. He boosted the price target to $195 from $175, citing multiple sales drivers — including increased promotions, price point advertising and the Uber Eats partnership — that are expected to significantly boost same-store sales at the company's Olive Garden chain.

The Uber Eats partnership will start this fall with a pilot for delivery at about 100 Olive Garden units. Saleh expects the Uber Eats partnership to generate a mid-single-digit comparable sales benefit over time. The analyst noted that while Q1 FY25 performance was impacted by unexpected industry weakness in July, the company's comparable sales growth turned positive across all brands, except Fine Dining, in September.

Overall, Saleh remains bullish on DRI stock, given that it is a "combination of an industry-leading operator with consistent earnings growth at an attractive valuation."

Saleh ranks No. 422 among more than 9,000 analysts tracked by TipRanks. His ratings have been profitable 62% of the time, delivering an average return of 10.7%. (See DRI Stock Buybacks on TipRanks)

Target

Big-box retailer Target (TGT) is this week's third dividend pick. In June, Target announced a 1.8% rise in its quarterly dividend to $1.12 per share. This marked the 53rd consecutive year in which the company increased its dividend. TGT stock offers a dividend yield of 2.9%.

Last month, Target announced better-than-anticipated results for the second quarter of fiscal 2024 amid macro challenges. The company paid $509 million in dividends and repurchased shares worth $155 million in the fiscal second quarter. 

Recently, Target announced the appointment of Jim Lee as the company's new CFO. Following the news, Jefferies analyst Corey Tarlowe reaffirmed a buy rating on TGT stock with a price target of $195. The analyst is upbeat about the hiring of the new CFO and thinks that he could enhance the company's food and beverage focus, given his experience at consumer staples giant PepsiCo.

Tarlowe noted the company's commentary during the Q2 earnings call about food and beverage being a traffic-driving category. He added that the company's price reduction across nearly 5,000 items over the summer fueled higher unit and dollar sales. With the appointment of Lee as the new CFO, the analyst sees the opportunity for further price cuts and increased volumes. He also expects TGT's margins to improve under Lee.

Despite near-term pressures, Tarlowe is bullish on TGT's long-term prospects. He emphasized that the company's "significant investments in price, omnichannel, and stores are showing solid returns and share gains."

Tarlowe ranks No. 319 among more than 9,000 analysts tracked by TipRanks. His ratings have been profitable 67% of the time, delivering an average return of 17.1%. (See TGT Stock Charts on TipRanks)