5 Elite Dividend Stocks Wall Street Loves Today (AGNC, CVX, MPLX, PH, VZ)
Sarah Davis ; 2025-10-28 04:30:20
Key Points
- Solidly reliable growth stocks that have an additional dividend aspect are favorites for many investors who want steady appreciation without undue price turbulence in their portfolios.
- Indispensable industries like energy, real estate, aerospace, and telecommunications often contain more of these reliable growth and income stocks than more volatile, high-flying technology or biotech.stocks.
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There is a fairly broad demographic of investors who are happy with steady growth and the bonus of a dependable dividend for their portfolios. They may cite their content in being able to leave behind sleepless nights, stress related, stomach churning heartburn, worries over market volatility, and regulatory concerns over high-flyers as their justification – all perfectly valid reasons.
Steady growth and income stocks can usually be found in companies with long histories providing indispensable products and/or services to a large market segment. Some of these industries include energy, real estate, aerospace, and telecommunications. While the list is long and clearly a number of stocks may be favored more than others by some, among Wall Street analysts’ favorites are (prices based on market quote at time of this writing):
AGNC Investment Corp.
AGNC Investments’ $102 billion funds are almost exclusively used for US Government insured mortgage securities, such FDMC, GNMA, and GNMA.
AGNC Investment Corp. (NASDAQ: AGNC)
Current Price: $9.93
Yield | 14.51% | 12-mo. Consensus | $9.82 |
Avg. Daily Volume | 19.73 million shares | YTD Total Return | 20.72% |
Assets | $102.02 billion | 1-Year Total Return | 11.37% |
52-wk low | $7.85 | 3-Year Total Return | 111.48% |
52-wk high | $10.63 | 5-Year Total Return | 35.52% |
Formerly known as American Capital Agency Corp. the company changed its name to AGNC Investment Corp. in 2016. Based in Bethesda, MD, AGNC Investment Corp. invests almost exclusively in US Government Agency mortgage securities, such as Fannie Mae, Freddie Mac and Ginny Mae. However, it uses leverage via repurchase agreements and aggressively incorporates hedging strategies and derivatives to both protect portfolio assets as well as to enhance returns. With a $102 billion portfolio size, AGNC is one of the larger US Real Estate Investment Trusts (REIT) in operation. Under the REIT registration rules, AGNC has to remit 90% of its profits.
The three largest institutional investors in AGNC are: Vanguard (9.10% of outstanding shares); Blackrock (5.06%); and Geode Capital Management LLC (2.40%).
REITs can focus on a range of sub-categories in the real estate realm that can generate hefty returns if managed in a strategic fashion. AGNC Investment Corp. invests almost exclusively in US Government Agency mortgage securities. However, it uses leverage via repurchase agreements and aggressively incorporates hedging strategies and derivatives to both protect portfolio assets as well as to enhance returns.
Since AGNC is not subject to the overhead, management, and liability costs associated with physical premises real estate operations, it has more capital to leverage into portfolio management of its FNMA and FDMC bonds. As such, its profit margin is a hefty 76.21%.
However, while AGNC’s investment strategy offers high return potential, it also carries some market risk. Leverage works both ways; while it can boost returns during healthy market conditions, it can have a negative impact during more turbulent periods. FNMA and FDMC paper is much more interest rate sensitive, so although AGNC has never failed to pay a dividend payment since its inception in 2008 (17 years) its dividend amounts have varied during periods of unusual market volatility or bearish environments. Should AGNC’s returns fall below its cost of capital in the future, it might need to reduce its dividend. This has happened in the past, which can mean some uncertainty for income-focused investors.
The other caveat with AGNC is that it expands its portfolio by selling stock to buy more mortgage-backed securities (MBS). AGNC issued 92.6 million shares in the Q2, raising nearly $800 million for additional MBSes. These large block issuances can cause value dilution of its existing shares. On the other hand, AGNC’s high-yield dividend has more than offset any price dilution losses (it has delivered an 11% average annual total return). However, investors must be comfortable with the possibility that the value of their investment could decline in the long term if AGNC continues to sell stock to grow its portfolio — even if these sales do not grow the value of the stock price or dividend rate.
REITS can provide a solid real estate based income stream for a portfolio that can offer stronger intrinsic value than higher synthetically derived dividend plays, such as YieldMax ETFs, albeit with lower dividends. If diversification is desired for a portfolio, REITs may not equal the growth of many tech stocks, but they will solidly deliver the income to ride out tough economic times, such as what the US underwent from 2021-2024.
Some analysts think that AGNC is grossly undervalued.Simply Wall Street, for example, believes that AGNC’s fair value market price is $19.71, making its current price a nearly50% discount. Much like the YieldMax ETFs, although AGNC’s overall price has remained in a tight range since Q2 2022, its double digit returns have been solid, and its total assets have grown from $72 billion to over $102 billion in the past 24 months, so more and more investors are joining Vanguard and Blackrock on the AGNC bandwagon.
MPLX LP
MPLX handles transport, refining, and storage operations for Marathon Oil and for other companies on a contractual fee basis.
MPLX LP (NYSE: MPLX)
Current Price: $47.80
Yield | 8.00% | 12-mo. Consensus | $86.79 |
Avg. Daily Volume | 1.44 million shares | YTD Total Return | 5.71% |
Assets | $37.84 billion | 1-Year Total Return | 17.45% |
52-wk low | $43.54 | 3-Year Total Return | 100.63% |
52-wk high | $54.87 | 5-Year Total Return | 345.39% |
Much like telecom data and communication networks, the oil and gas industry also has its own infrastructure network to transport and store products. The oil and gas industry’s network is referred to as the midstream sector. It consists of pipelines, storage facilities, processing and transport terminals, maritime tankers, trucks, and other infrastructure facilities. Midstream companies that trade publicly are organized as Limited Partnerships or Master Limited Partnerships. Similarly to REITs, they are required to remit 90% of profits to shareholders.
MPLX LP is based in Findlay, OH. Incorporated in 2012, MPLX LP is a subsidiary ofMarathon Oil (NYSE: MPC). There are two primary operations units, in addition to Marathon Oil’s Capline and Mark West pipeline networks.
Logistics and Storagehandles transportation, distribution, storage and marketing of crude oil, refined products and other hydrocarbon-based products throughout the U.S. These assets consist of a network of wholly and jointly-owned common carrier crude oil and refined product pipelines, associated storage assets, refined product terminals, storage caverns, refinery integrated tank farm assets, rail and truck racks, a marine business, export terminals, and wholesale and fuels distribution businesses.
Gathering and Processingis dedicated to natural gas and separating various hydrocarbon components from it for different markets. The heavier and more valuable hydrocarbon components, which have been extracted as a mixed NGL stream, are then further separated into their component parts for end-use sale through the process of fractionation. MPLX sells basic Natural Gas Liquid (NGL) products, including ethane, propane, normal butane, isobutane and natural gasoline.
MPLX stock has sold off since it announced it was selling its midstream gathering and processing asset for the Uinta and Green River Basins, which service Colorado, Utah, and Wyoming, for $1 billion in cash to a subsidiary of Harvest Midstream. MPLX had earlier signalled it planned to concentrate more of its operation in the Marcellus and Permian Basin regions. As such, the price may be considered a temporary discount, since a number of potentially very lucrative joint ventures and strong simpatico acquisitions should boost its long-term prospects. Joint ventures include:
- BANGL NGL pipeline expansion: MPLX and its partners approved a project to expand this natural gas liquids (NGL) pipeline, which should enter service in Q3 2026.
- Oneok JV: MPLX formed a JV with Oneok to build a new LPG export terminal and associated pipeline, both of which are projected to start operating in early 2028. MPLX will own 50% of the $1.4 billion export terminal and 20% of the $350 million pipeline.
- Traverse Pipeline: MPLX and its partners in the Blackcomb and Rio Bravo pipeline projects have also approved the construction of the Traverse Pipeline, which is expected to complete in 2027.
- Eiger Express Pipeline: MPLX is investing in this new gas pipeline through its existing Matterhorn JV and taking a direct 15% interest in the project. This pipeline is slated to start commercial service by Q3 2028.
- Gulf Coast Fractionation Complex: MPLX also agreed to build two NGL fractionation plants next to Marathon Petroleum’s Galveston Bay refinery. Marathon will buy all output from those facilities when they come online in 2028 and 2029.
Acquisitions include:
- Matterhorn Express Pipeline: MPLX is buying an additional 5% of this JV for $151 million, boosting its stake to 10%.
- Whiptail Midstream: MPLX paid $237 million for Whiptail, which owns extensive oil, gas, and water gathering systems in the San Juan Basin.
- BANGL Pipeline: MPLX agreed to acquire the remaining 55% stake in this pipeline for $715 million, giving it sole ownership.
- Northwind Midstream: Northwind’s 200 miles of natural gas gathering, treatments, and processing infrastructure for New Mexico will all be taken over by MPLX for $2.4 billion. Acquiring Northwind will provide an immediate boost to MPLX’s cash flow, which should continue growing over the next year as the company completes its in-process expansion projects.
For income investors, MPLX LP has increased its dividend annually since 2013. At 12 years, it is nearly at the halfway mark to reaching the elite 25 consecutive year “Dividend Aristocrat” Club.
Verizon Communications
Verizon Communications is the largest US wireless carrier, and its recent announcement with AST Space Mobile indicates that space based cellular broadband will be its next expansion plan.
Verizon Communications (NYSE: VZ)
Price: $39.85
Yield | 6.93% | 12-mo. Consensus | $48.59 |
Avg. Daily Volume | 19.91 million shares | YTD Total Return | 6.51% |
Assets | $383.28 billion | 1-Year Total Return | -0.83% |
52-wk low | $37.59 | 3-Year Total Return | 33.18% |
52-wk high | $47.36 | 5-Year Total Return | -9.37% |
Verizon was formed in 2000 from the former “Baby Bell” companies, Bell Atlantic and Nynex, along with GTE, which were originally all part ofAT&T (NYSE: T), or Ma Bell, and split up in 1984 by the DOJ in an antitrust case.
Although Verizon has the largest domestic US wireless network, the company acknowledges that with over half of its revenues derived from that sector, it has more vulnerabilities if there are issues with satellite signals or other wireless related service problems than its competitors. Therefore, Verizon is in the process of further developing its 5G and AI technologies.
Verizon’s FIOS optic fiber system is the core of its 5G network and they proudly advertise that it has been the recipient of the greatest number of consumer awards for customer satisfaction and internet speeds over the past decade. FIOS’ superior speed results in lower latency, a feature that has become a driving force behind the growth of the 5G IoT (Internet of Things) market.
On the AI front, Verizon announced a partnership in December withNvidia (NASDAQ: NVDA)that will integrate Verizon 5G networks and Mobile Edge Compute (MEC) with Nvidia’s AI Enterprise software and NIM microservices. The partnership is expected to deliver high-bandwidth, minimal latency generative AI, computer vision and AR/VR for various industries. Strategically, both parties benefit:
- For Verizon: The partnership allows it to move beyond being a connectivity provider and offer cutting-edge, integrated AI solutions, as well as solidifying its leadership in private 5G and mobile edge computing.
- For NVIDIA: By leveraging Verizon’s robust private 5G network infrastructure, NVIDIA can expand the reach of its AI Enterprise software and microservices to a broader range of enterprise customers.
Verizon’s biggest breakthrough announcement of late was an agreement withAST SpaceMobile (NASDAQ: ASTS)to collaborate in providing space-based cellular broadband service throughout the US in 2026.
Conversely – despite Verizon’s financial and business growth metrics, its 1 year trading range ($37-$45) has stayed within roughly 10 points, and has not approached its $61 high price in over 5 years. The 6.93% yield will likely reduce if the stock price can break back over $50, but otherwise, there are other market factors at this time that are preventing such a run.
Chevron Corporation
Chevron’s merger with Hess is expected to give Chevron a larger than expected revenue boost, according to CEO Mike Wirth.
Chevron Corporation (NYSE: CVX)
Price: $148.90
Yield | 4.59% | 12-mo. Consensus | $169.87 |
Avg. Daily Volume | 9.04 million shares | YTD Total Return | 6.38% |
Assets | $250.82 billion | 1-Year Total Return | 3.34% |
52-wk low | $132.04 | 3-Year Total Return | 7.12% |
52-wk high | $168.96 | 5-Year Total Return | 149.73% |
Chevron is the second largest US oil company by market cap. At the time of this writing, the CVX market cap is at $250.82 billion. Its primary business is in oil and gas.
As one of the largest Permian Basin crude oil producers, Chevron is a leader in drilling and exploration of shale oil, which is obtained through fracking. This allows Chevron to add a nearly 50% markup in its price on crude oil, which costs the company $50 per barrel, on average. Chevron pays zero royalties, so gross and net profits are essentially the same. Permian shale oil on a whole was expected to dramatically increase production going throughout 2025, according to the EIA. Chevron’s footprint in the Liquified Natural Gas arena is expanding.
The Hess Merger: Based on Hess Corp.’s 30% stake in Guyana’s Stabroek oil field, Chevron’s $55 billion acquisition was the second largest merger transaction in history after ExxonMobil’s $60 billion deal for Pioneer Natural Resources. The Hess deal was controversial because Exxon, who co-owned Stabroek with a 45% stake, claimed it should have “right of first refusal” and attempted to block the deal for nearly two years, since it would trigger a change-of-control clause.
The FTC cleared the pending Chevron-Hess merger for potential antitrust issues in late September 2024, so the $55 billion deal closed in July, 2025. However the dispute with Exxon is still under arbitration, so if that can reach a resolution, Chevron’s Hess acquisition is anticipated to double its free cash flow by 2027, predicated on oil prices at $70 per barrel. Chevron CEO Mike Wirth is so bullish on the Hess contribution prospects that he recently stated publicly that the energy demands from data centers and the extra value discovered after the Hess merger combined should cause an upward revision of financials in their next investor conference this November, according toReuters.
President Trump’s announced peace agreement in Gaza has sent oil prices lower, now that the threats to OPEC appear to be significantly diminished. As such, a number of oil companies may face a selloff. Some analysts recently picked Chevron as an excellent energy industry play for whichever direction oil prices go, due to its combination of assets:
- Upstream (exploration and production)
- Downstream (refining and chemicals)
When energy prices rise, upstream operations become more valuable, while downstream operations are more important when energy prices fall.
From an income perspective, Chevron boasts 38 straight years of dividend increases and a sizable debt reduction from $45 billion to the mid $30 billion range. Chevron was hailed for its combination of a relatively balanced energy operations approach, combined with a rock-solid balance sheet. Wall Street analysts’ consensus projects Chevron EBITDA of $47.8 billion in 2026 vs. $37.7 billion in net debt. This makes Chevron an ideal choice for conservative investors looking for some upside from the price of oil combined with some downside protection if the price doesn’t decline sharply from here.
Parker-Hannifin Corporation
Parker-Hannifin’s motor, fuel, cooling, and other systems and components have led the automotive, aviation, and aerospace industries for over a century.
Parker-Hannifin Corporation (NYSE:PH)
Price: $716.66
Yield | 1.00% | 12-mo. Consensus | $799.05 |
Avg. Daily Volume | 604,390 shares | YTD Total Return | 13.535 |
Assets | $29.49 billion | 1-Year Total Return | 14.61% |
52-wk low | $488.45 | 3-Year Total Return | 194.61% |
52-wk high | $779.77 | 5-Year Total Return | 251.92% |
While not as much of a household name in aerospace as Boeing or Northop-Grumman, Cleveland, OH basedParker-Hannifin Corporation (NYSE:PH)has made itself crucial to the industry with its wide array of systems, components, and indispensable aeronautic parts and machinery for military, manufacturing, and other industrial applications. The company was founded in 1917, and boasts 70 uninterrupted years of dividend growth., making it a member of the rare and exclusive Dividend King club.
Founded by Arthur Parker, the company initially built pneumatic brakes and industrial machine parts and fittings for the automotive and aviation sectors. Parker fittings became known for their reliability, and were specifically requested by Charles Lindbergh forThe Spirit of St. Louisfor his landmark historical transatlantic flight. Parker valvers, fluid connectors, and other crucial parts became essential for the war effort during WW II.
Parker technology and innovations continued to historically trailblaze the aerospace industry through its parts and systems, including fuel systems for NASA’s Apollo 11 moon landing, motor control, filtration, and other systems via major acquisitions both domestic and international, and a quiet, yet steady lead presence in the industry for over the past half century.
It’s interesting to note that institutional investorslovePH, with a whopping90.18%of shares in the hands of institutions. Vanguard’s Total Stock Market Index Fund owns 3.25% of the available shares, and its Vanguard 500 Index Fund owns 2.87%. The Fidelity 500 Index Fund owns 1.28%, iShares Core S&P 500 ETF is 4th, with 1.21%, and SPDR S&P 500 ETF Trust is fifth with 1.20%.
Growth and Income stocks may lack the sizzle and cyclonic twists and turns of Magnificent Seven tech stocks and their ilk, but investors in these growth and income stocks enjoy a steady and dependably predictable trajectory in stock price and in returns to offer savings on antacid medication.