3 High-Yield Dividend Stocks Wall Street Expects to Grow 41% or More by 2025
How would you like to get paid to sit back and watch the stock you picked yourself? That’s a situation many investors like. But is it unrealistic? No, not with actual stock. Analysts may have just found stocks to buy. Here are three High-dividend stocks Wall Street thinks it will rise 41% or more by 2025.
AES (NYSE: AES ) It ranks as a top seller Renewable energy It operates two of the fastest-growing utilities in the U.S. for corporate clients and the company owns hydroelectric, solar and wind power plants, as well as natural gas, coal and pet-coke or oil facilities.
Although AES’s stock price has fallen nearly 60 percent from its peak in late 2022, Wall Street expects it to rebound. An average of analysts’ 12-month price target suggests upside potential of 47 percent. Of course, not every analyst is bullish about AES. However, in a study conducted in January LSEGOf the 16 analysts covering AES, 11 recommend the stock as a “buy” or “strong buy”.
This utility stock offers an attractive dividend yield of 5.68%. AES has increased its dividend for 12 consecutive years, most recently announcing a 2% dividend increase last month. It also boasts a healthy payout ratio of 47.5%.
You probably already know, at least somewhat. CVS Health (NYSE: CVS ). The company is one of the largest pharmacy retailers in the U.S. The CVS Caremark division is one of the leading pharmacy benefit managers (PBMs). CVS Health owns Aetna, one of the largest health insurers.
According to AES, CVS Health’s stock price has fallen 60 percent below its peak. But Wall Street likes this stock going forward. The average 12-month price target is 41% above CVS’s current stock price. Eighteen of 28 analysts polled by LSEG in January called the stock a “buy” or “strong buy.” The other 10 analysts recommend holding CVS.
CVS Health had an impressive track record before acquiring Athena in 2018. After taking a hiatus for a few years, the company started raising its payout again in 2022. The dividend yield now stands at 5.78%.
Devon Energy (NYSE: DVN) It is one of America’s top oil and gas producers. Significant production capacity in the Delaware Basin, located in West Texas and Southeast New Mexico, operates in several locations in the US.
In the year After hitting record lows in 2020 fuel prices following the Covid-19 pandemic, Devon’s share price has given up most of its gains. However, the consensus on Wall Street is that the stock is likely to return to its winning ways in the next 12 months. Devon’s average price target indicates upside potential of 42 percent. Of the 31 analysts surveyed by LSEG in January, 20 rated the stock a “buy” or “strong buy,” while the rest recommended it a “hold.”