Core Viewpoint - Analysts have identified three high-yield dividend stocks that are expected to soar 41% or more by 2025, providing potential investment opportunities for income-focused investors [1] Group 1: AES - AES is the leading seller of renewable power to corporate customers and operates rapidly growing utilities in the U.S. with diverse energy generation facilities [2] - Despite a nearly 60% decline in share price since late 2022, Wall Street anticipates a rebound with an average 12-month price target indicating a 47% upside potential. 11 out of 16 analysts recommend it as a "buy" or "strong buy" [3] - AES offers a forward dividend yield of 5.68% and has increased its dividend for 12 consecutive years, with a recent 2% hike and a payout ratio of 47.5% [3] Group 2: CVS Health - CVS Health is a major pharmacy retailer in the U.S. and owns Aetna, one of the largest health insurers, along with its CVS Caremark pharmacy benefit management unit [4] - Similar to AES, CVS Health's share price has dropped nearly 60% from its peak, but analysts project a 41% increase in the average 12-month price target. 18 out of 28 analysts rated it a "buy" or "strong buy" [5] - The company has a forward dividend yield of 5.78% and resumed increasing its dividend in 2022 after a period of stability following the Aetna acquisition [6] Group 3: Devon Energy - Devon Energy is one of the largest oil and gas producers in the U.S., with significant operations in the Delaware Basin [7] - Following a substantial increase in share price post-COVID-19, Devon's stock has retraced much of its gains, but analysts predict a 42% upside potential in the next 12 months, with 20 out of 31 analysts rating it a "buy" or "strong buy" [8] - Devon's dividend consists of a fixed and a variable component based on excess free cash flow, currently offering a forward yield of 4.13%, which could increase with rising oil prices [8]
3 High-Yield Dividend Stocks Wall Street Thinks Will Soar 41% or More in 2025