Stagflation is back in the headlines in 2025, as investors worry that still-high inflation could soon be joined by high unemployment and a stagnant economy. Because of this, more people are looking for investments that can handle tough times while still paying out steady income. Dividend stocks, especially those that analysts really like, may be safe bets for stable returns.

Recent performance show why this matters right now. The S&P 500 Index ($SPX) is down nearly 4% in the year to date, as is the Nasdaq-100 Index ($IUXX). However, some top dividend stocks like Coca-Cola (KO) have seen the opposite, with KO up over 13% year-to-date. 

For investors looking to protect themselves from stagflation, it makes sense then to turn to dividend stocks. These three on my list are also highly rated by analysts, making them better buys. Let’s dive into these three now: Coca-Cola (KO), Energy Transfer LP (ET), and ConocoPhillips (COP).

Dividend Stock #1: Coca-Cola (KO)

Coca-Cola (KO) is one of the most recognized drink names, selling everything from classic sodas to water, juices, sports drinks, and even dairy alternatives. Coca-Cola’s stock has done well, up more than 13% in the year-to-date. Even with all the ups and downs in the economy, investors trust Coca-Cola. 

The company’s forward price-earnings (P/E) ratio of 24.4x, notably higher than the sector average of 16.2x, signals a premium valuation tied to its defensive qualities and consistent earnings power. The company pays a steady dividend, currently yielding 2.89%, and has raised its payout for 64 years in a row. This makes it a dividend king and a favorite for investors who want reliable income, especially when times are tough. 

Looking at its latest results, Coca-Cola’s business is still strong. In the first quarter of 2025, organic revenue went up by 6%, although total revenue dipped due to currency changes and changes in their bottling business. 

Coca-Cola’s profit margins are healthy, and earnings per share grew by 5% to $0.77. The company expects to keep growing at a steady pace, aiming for 5%–6% organic revenue growth for the year. CEO James Quincey says an “all-weather strategy” and global reach help Coke handle whatever challenges come up, and he’s confident the company will keep delivering value for the long run.

Analysts are very upbeat about Coca-Cola’s future. The 23 analysts who cover the stock give it a consensus “Strong Buy” rating, with an average price target of $79.39, which is about 10% higher than where the stock is now. 

Dividend Stock #2 : Energy Transfer LP (ET)

Energy Transfer LP (ET) is one of the biggest pipeline companies in the U.S., moving natural gas, oil, and other fuels all over the country, with over 130,000 miles of pipelines and several storage sites. 

Although Energy Transfer’s stock is up 6% over the past 52 weeks, it’s down 12% so far in the year to date. 

Energy Transfer’s forward P/E of 11.9x remains only slightly above the sector average of 10.97x, suggesting a reasonable valuation for its scale and stability. The company’s dividend currently yields 7.61%, almost double the 4.24% average for energy stocks. The company has raised its payout for four years in a row, suggesting growing reliability for shareholders.  

In its latest results, Energy Transfer reported  $1.32 billion in profit for the first quarter of 2025, and adjusted EBITDA of $4.1 billion, both higher year-over-year. Revenue was 2.9% lower at $21.02 billion, mainly because of weaker prices for oil and gas.

Energy Transfer’s partnership with MidOcean Energy on the Lake Charles LNG project is a big step, as it could help tap into growing global demand for liquefied natural gas. The company is also working on deals to supply data centers, which need lots of reliable energy. Meanwhile, sector consolidation continues, as seen in Sunoco’s $9.1 billion acquisition of Parkland, which could end up helping Energy Transfer in the long run.

Analysts are very positive about Energy Transfer. The 14 analysts who cover the stock rate it a consensus “Strong Buy,” and the average price target is $23.07, which is about 37% higher than where it’s trading now. 

Stock #3: ConocoPhillips (COP)

ConocoPhillips (COP) is one of the world’s largest independent oil and gas companies, with operations spread across North America, Asia, Australia, and Europe. The company focuses on oil and gas exploration and production. Like Energy Transfer, it’s also seeking to leverage the growing market for LNG. 

Othe last year, shares are down 23%, and they’ve dropped 6.1% so far in 2025.  

The stock trades at a forward P/E of 13.4x, which is higher than the sector average of 10.97x, showing that investors are still willing to pay a bit more for its size and steady cash flow. The company’s dividend yields 3.37% with a payout ratio around 40%.

In its first quarter, ConocoPhillips reported adjusted earnings per share of $2.09, up from $2.03 in the year-ago period. Its cash from operating activities came in at $6.1 billion. 

One positive for investors is that the company lowered its full-year expenditure and operating costs forecasts while maintaining its production guidance. For Q2, the company expects production between 2.34 million and 2.38 million barrels of oil equivalent per day. 

Analysts are very positive about ConocoPhillips, too. The 26 analysts who cover the stock rate it a consensus “Strong Buy,” and the average price target is $117.20, which is about 17% higher than where the stock is currently trading. 

Conclusion

In times of economic uncertainty and stagflation worries, it pays to stick with proven winners. Coca-Cola, Energy Transfer, and ConocoPhillips each stand out for their strong dividend profiles, resilient business models, and clear analyst support. While no stock is immune to market swings, these three offer a compelling mix of income and long-term growth potential that can help investors scale through tough conditions. 

If you’re looking to shore up your portfolio against inflation and volatility, these top-rated dividend stocks are well worth a closer look.

On the date of publication, Ebube Jones did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.