Wall Street Analysts Recommend Three Dividend Stocks for Passive Income
As investors weigh concerns about artificial intelligence and high spending, Wall Street analysts are recommending three dividend stocks to consider for passive income.
The first pick is Expand Energy (EXE), a natural gas producer that recently acquired Twin Eagle Holdings for $1.25 billion. The deal is expected to accelerate EXE's marketing and commercial goals, in addition to its solid second-quarter results. In Q2 2026, EXE repurchased shares worth $530 million and declared a dividend of nearly 58 cents per share, payable on September 3.
Wolfe Research analyst Doug Leggate reiterated a buy rating on EXE stock and raised his price target to $114 from $110. He noted that Expand delivered market-beating adjusted earnings per share and earnings before interest, taxes, depreciation, and amortization in Q2 2026, driven by better gas realizations and lower gathering, processing, and transportation expenses.
Leggate views net debt reduction as the best option for EXE to enhance shareholder returns, followed by buybacks and mergers and acquisitions. He highlighted that the company repaid $1.3 billion of gross debt in April, supported by seasonally higher cash flows in the first quarter.