How much would you like to be paid to sit back and watch the stock you own go up? That’s a scenario most investors would love. But is it unrealistic? No, not with real dividend stocks. And analysts may have just found stocks to buy. Here are three stocks with a high dividend yield Wall Street thinks it will grow 41% or more in 2025.
AES (NYSE: AES) ranked as the best seller of renewable energy corporate clients and manages two of the fastest growing utilities in the US. The company owns hydroelectric, solar and wind power plants, as well as natural gas, coal and petcoke or oil plants.
Although AES’s share price is down nearly 60% from its peak in late 2022, Wall Street expects a rebound. Analysts’ average 12-month price target reflects upside potential of 47%. However, not every analyst is bullish on AES. However, in the January survey he conducted LSEG11 out of 16 analysts covering AES have recommended the stock a “buy” or “strong buy.”
This utility stock offers an attractive forward 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 are probably already at least somewhat familiar CVS Health (NYSE: CVS). The company is one of the largest pharmacy retailers in the US, and its CVS Caremark unit is one of the leading pharmaceutical benefit managers (PBMs). CVS Health also owns Aetna, one of the largest health insurers.
As was the case with AES, CVS Health’s share price has fallen nearly 60% below its peak. But Wall Street likes this stock going forward. The average 12-month price target is 41% above CVS’s current share price. Eighteen of 28 analysts surveyed by LSEG in January rated the stock a “buy” or “strong buy.” Other 10 analysts recommend holding CVS.
CVS Health had an impressive streak of dividend increases before it acquired Aetna in 2018. After holding its dividend steady for several years, the company began raising its payout again in 2022. Its dividend yield is now 5.78%.
Devon energy (NYSE: DVN) is one of the largest American oil and gas producers. It operates in multiple areas in the US, with significant production capabilities in the Delaware Basin located in western Texas and southeastern New Mexico.
After a big rally after the bottom of the COVID-19 pandemic for oil prices in 2020, Devon’s share price has lost much of its gains. However, the consensus on Wall Street is that the stock could return to its winning ways over the next 12 months. Devon’s average price target reflects upside potential of 42%. 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.”
