How to seize "steady happiness" under the shadow of tariffs? Wall Street analysts strongly recommend three U.S. dividend stocks

According to Zhitong Finance APP, influenced by Trump's tariffs and macroeconomic challenges, market optimism regarding the artificial intelligence boom has weakened. In this uncertain environment, top analysts on Wall Street have recommended three dividend stocks for investors seeking stable returns: ConocoPhillips (COP.US), US Bancorp (USB.US), and HP (HPQ.US).

ConocoPhillips

ConocoPhillips, an oil and gas exploration and production company, distributed $2.5 billion to shareholders in the first quarter of 2025, including $1.5 billion in stock buybacks and $1 billion in cash dividends. ConocoPhillips' quarterly dividend is $0.78 per share (annualized dividend of $3.12), with a dividend yield of 3.3%.

Royal Bank of Canada Capital Markets analyst Scott Hanold reiterated a "Buy" rating on ConocoPhillips, with a target price of $115. The analyst expects ConocoPhillips to outperform other large exploration and production companies.

Hanold stated, "ConocoPhillips has a return-focused value proposition, a strong balance sheet, and industry-leading dividend levels."

The analyst believes that ConocoPhillips has the ability to generate competitive free cash flow (FCF) across various commodity price cycles. Hanold emphasized that the company has a globally diversified asset base, allowing it to flexibly allocate capital during economic and commodity price cycles, thereby achieving industry-leading shareholder returns.

Additionally, ConocoPhillips' substantial asset footprint in the Permian Basin will help generate higher free cash flow while providing asset diversity and development flexibility. He noted that the company's breakeven point is low, allowing it to cover production maintenance costs and pay dividends even when WTI crude oil is below $40 per barrel. The analyst also pointed out that ConocoPhillips' robust balance sheet enables it to enhance shareholder value.

Hanold ranks 12th among over 9,800 analysts tracked by TipRanks, with a rating accuracy of 71% and an average return rate of 31.2%.

US Bancorp

US Bancorp provides financial services to customers through a diversified business portfolio, including consumer banking, commercial banking, and wealth management. US Bancorp's quarterly dividend is $0.50 per share (annualized dividend of $2), with a dividend yield of 4.2%.

Royal Bank of Canada analyst Gerard Cassidy reiterated a "Buy" rating on US Bancorp, with a target price of $50. He highlighted several positive factors supporting his bullish stance, including the bank's new leadership. Gunjan Kedia will succeed Andy Cecere as CEO of US Bancorp in April 2025, reaffirming financial goals that include achieving an operating leverage of over 200 basis points. US Bancorp's operating leverage was 270 basis points in the first quarter of 2025 Cassidy also emphasized that US Bancorp has consistently been one of the best-performing banks in the United States, as reflected in the compound annual growth rate (CAGR) of shareholder returns over the past 20 years. This growth is primarily attributed to the bank's commitment to enhancing tangible book value and dividends per share. Notably, US Bancorp cumulatively returns up to 80% of its profits each year through stock buybacks and dividends.

Cassidy also mentioned the excellent asset quality and outstanding underwriting capabilities of US Bancorp. The seasoned analyst believes, "In the face of overall poor performance over the past two years, US Bancorp will reach a turning point in 2025, with headwinds turning into tailwinds." The improvement in performance is attributed to the bank's investments over the past decade, which are expected to drive revenue growth exceeding expense growth in the coming years.

Cassidy ranks 24th among over 9,800 analysts tracked by TipRanks. His rating accuracy is as high as 72%, with an average return of 21%.

HP

HP announced last month a quarterly dividend of $0.2894 per share, marking the fourth dividend payment for the company's fiscal year 2025. Based on an annualized dividend of $1.1576 per share, HP's dividend yield stands at 4.5%.

Despite ongoing challenges from tariffs and other issues, Evercore analyst Amit Daryanani maintains a "Buy" rating on HP, with a target price of $29. Following an investor webinar with HP's Chief Corporate Officer Ernest Nicolas, the analyst highlighted key points supporting his bullish stance.

Daryanani noted that HP is successfully diversifying its business and is on track to achieve its goal: that 90% of products aimed at the U.S. market will be produced outside of China. Most production will remain in Asia, with countries like Vietnam, Thailand, and Indonesia, while some production is planned for Mexico. The analyst also stated that HP is attempting to close the gap with competitors by adopting a multi-site production model and optimizing its supply chain.

Daryanani indicated that HP expects "the tariff environment to remain unstable," but management believes the company is now better equipped to handle tariff-related challenges.

The analyst stated that HP remains committed to achieving its annual savings target of $2 billion through cost-saving initiatives. This plan includes several measures, including internal AI tools that can enhance productivity and efficiency.

Daryanani ranks 174th among over 9,800 analysts tracked by TipRanks. His rating accuracy is 64%, with an average return of 15.3%