HomeBusinessThree high-yield dividend stocks that Wall Street thinks will rise 41% or...

Three high-yield dividend stocks that Wall Street thinks will rise 41% or more in 2025

How would you like to get paid to sit back and watch a stock you own rise? That’s a scenario most investors would love. But is it unrealistic? No, not with the right dividend stocks. Analysts might also have found just the stocks to buy. Here are three high-yield dividend stocks that Wall Street thinks will rise 41% or more in 2025.

AES (NYSE: AES) is the top seller of renewable energy to business customers and operates two of the fastest growing utilities in the US. The company owns hydroelectric, solar and wind power generation facilities, as well as natural gas, coal and pet-coke or oil facilities.

Although AES’s stock price is down nearly 60% from its late-2022 peak, Wall Street expects a recovery. The average analyst price target over a twelve-month period reflects an upside potential of 47%. Admittedly, not every analyst is bullish on AES. From a survey conducted in January by LSEG11 out of 16 analysts covering AES recommended the stock as a ‘buy’ or a ‘strong buy’.

This utility stock offers an attractive future dividend yield of 5.68%. AES has increased its dividend for twelve years in a row, recently announcing a 2% dividend increase last month. It also boasts a healthy payout ratio of 47.5%.

You’re probably already somewhat familiar with it CFS health (NYSE: CVS). The company is one of the largest pharmacy retailers in the US. The CVS Caremark unit is one of the leading pharmacy benefit managers (PBMs). CVS Health also owns Aetna, one of the largest health insurers.

See also  Rigetti's share price is rising faster than this seller estimated

Similar to AES, CVS Health’s stock price is down nearly 60% below its high. But Wall Street is happy with this stock going forward. The average 12-month price target is 41% above CVS’s current share price. Eighteen of the 28 analysts LSEG surveyed in January rated the stock a “buy” or a “strong buy.” The other ten analysts recommended holding CVS.

CVS Health had an impressive series of dividend increases before acquiring Aetna in 2018. After keeping the dividend stable for a few years, the company started increasing the payout again in 2022. The future dividend yield now stands at 5.78%.

Devon Energy (NYSE: DVN) is one of the largest US oil and gas producers. It operates in multiple areas across the US, with significant production capabilities in the Delaware Basin of West Texas and Southeastern New Mexico.

After a huge run-up after oil prices bottomed out due to the COVID-19 pandemic in 2020, Devon’s share price has given up much of its gains. However, the consensus on Wall Street is that stocks could return to their winning streak over the next twelve months. The average price target for Devon reflects an upside potential of 42%. Of the 31 analysts surveyed by LSEG in January, 20 rated the stock a “buy” or “strong buy,” while the others recommended it as a “hold.”

See also  Access to this page has been refused.

- Advertisement -
RELATED ARTICLES

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Most Popular

Recent Comments