itstargetnews
How would you like to be paid to sit back and watch a stock you own take off? This is a scenario that most investors would love. But isn’t it realistic? No, not with the right dividend stocks. Analysts might also have found just the stock to buy. Here are three of them high yield dividend stocks Wall Street believes it will rise 41% or more by 2025.
AES (NYSE: AES) ranks as the best seller of renewable energy to corporate clients and operates two of the fastest growing utilities in the US. The company owns hydroelectric, solar and wind energy generation facilities, as well as natural gas, coal and company coke or oil facilities.
Although AES’s share price has fallen nearly 60% from its peak in late 2022, Wall Street expects a rebound. Analysts’ average 12-month price target reflects a potential upside of 47%. Of course, not all analysts are bullish on AES. However, in a January survey conducted by LSEG11 out of 16 analysts covering AES recommended the stock as a “buy” or “strong buy”.
These utilities stocks offer an attractive forward dividend yield of 5.68%. AES has increased its dividend for 12 consecutive years, most recently announcing a 2% increase last month. It also has a good payout ratio of 47.5%.
You’re probably already at least somewhat familiar CVS Health (NYSE: CVS). The company is one of the largest retail pharmacies in the US. Its CVS Caremark unit is a leading pharmaceutical benefit manager (PBM). CVS Health also owns Aetna, one of the largest health insurers.
As was the case with AES, CVS Health’s stock price has fallen nearly 60% from 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 rated the stock a “buy” or “strong buy.” The other 10 analysts recommended holding CVS.
CVS Health had an impressive streak of dividend increases before acquiring Aetna in 2018. After holding the dividend flat for a few years, the company began raising the payout again in 2022. Its dividend yield in term is now at 5.78%.
Devon Energy (NYSE: DVN) is one of the largest producers of oil and gas in the United States. It operates in several areas of the United States, with significant production capabilities in the Delaware Basin located in western Texas and southeastern New Mexico.
After a big acceleration after the COVID-19 pandemic bottoms out for oil prices 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 ways over the next 12 months. Devon’s average price target reflects a potential upside of 42%. Of 31 analysts polled by LSEG in January, 20 rated the stock a “buy” or “strong buy,” with the rest recommending it a “hold.”
