How would you like to get paid to sit back and watch a stock you own take off? That's a scenario most investors would love. But is it unrealistic? No, not with the right dividend stocks. Analysts may have only found the stocks to buy as well. Here are three high yield dividend stocks Wall Street thinks it will soar 41% or more in 2025.
AES (NYSE: AES) ranks as top salesman renewable power to corporate customers and operates two of the fastest growing utilities in the U.S. The company owns hydroelectric, solar, and wind power generation facilities, as well as natural gas, coal, and pet coke or oil.
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 upside potential of 47%. Granted, not all analysts are bullish about AES. However, in a survey in January by LSEG11 of the 16 analysts covering AES recommended the stock as 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 has a healthy payout ratio of 47.5%.
You are probably already at least somewhat familiar with it CVS Health (NYSE: CVS). The company is one of the largest pharmaceutical retailers in the US Its CVS Caremark unit is one of the leading pharmacy benefit managers (PBMs). CVS Health also owns Aetna, one of the largest health insurers.
As in the case of AES, CVS Health's share price has plunged nearly 60% below its high. But Wall Street likes this stock going forward. The average 12-month price target is 41% above CVS's current share price. Eighteen of the 28 analysts surveyed by LSEG in January rated the stock a “buy” or “strong buy.” The other 10 analysts recommended holding CVS.
CVS Health had an impressive run of dividend increases before it acquired Aetna in 2018. After keeping its dividend steady for a few years, the company began increasing the payout again in 2022. Its forward dividend yield is now 5.78%.
Devon Energy (NYSE: DVN) is one of the largest oil and gas producers in the United States. It operates in several fields in the United States, with significant production capabilities in the Delaware Basin located in West Texas and Southeast New Mexico.
After a massive run following the COVID-19 pandemic bottoming for oil prices in 2020, Devon's share price has given up 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. The average price target for Devon reflects a potential upside of 42%. Of the 31 analysts surveyed by LSEG in January, 20 rated the stock a “buy” or “strong buy,” with the others recommending it as a “hold.”