2 S&P 500 Dividend Stocks That Could Climb 17% or More, According to Wall Street

Group 1: Dividend-Paying Stocks Performance - Dividend-paying stocks in the S&P 500 index delivered an average annualized return of 9.2% over the 50-year period ending in 2024, compared to 4.3% for non-dividend stocks [3] - Novo Nordisk and Constellation Brands are highlighted as dividend-paying stocks that have seen significant price declines but are expected to rebound [4] Group 2: Novo Nordisk Analysis - Novo Nordisk's stock price has dropped over 50% in the past year, yet its earnings per share have increased by 154% over the last five years, indicating strong underlying performance [5] - Analysts project a consensus price target above $97 per share for Novo Nordisk, suggesting a potential 40% increase in the next 12 months [6] - The company has increased total dividends per share by 173% from 2019 to 2024, with a potential yield of 1.8% for investors buying at recent prices [7] - First-quarter sales of its obesity drug, Wegovy, surged by 65% to $2.9 billion, contributing to an overall revenue increase of 18% at constant exchange rates [8] - The main patent for semaglutide, Novo Nordisk's leading drug, does not expire until 2032, allowing for continued market exclusivity [10] Group 3: Constellation Brands Analysis - Constellation Brands' stock has fallen by about one-third in the past year, but analysts expect a rebound with an average price target of $202, implying a 17% gain [11] - The company has consistently raised its dividend since 2015, with a current yield of 2.4% and a 229% increase in dividend payments over the past 10 years [12][13] - Constellation's beer business is gaining market share, and despite potential challenges from new tariffs on imports from Mexico, it remains the sole distributor of popular brands like Modelo and Corona [14][15]