Top Wall Street analysts are upbeat on these 3 dividend stocks for enhanced returns

Core Insights - The U.S. Federal Reserve has cut key interest rates by 25 basis points for the third time in 2025, which may lead investors to consider dividend stocks for stable income and enhanced returns [1] Group 1: Dividend Stocks Overview - Top Wall Street analysts have identified attractive dividend-paying stocks, which can assist investors in making informed decisions [2] Group 2: Devon Energy - Devon Energy (DVN) returned $401 million to shareholders in Q3 2025 through share repurchases and dividends, with a fixed quarterly dividend of $0.24 per share, yielding 2.5% [3] - JP Morgan analyst Arun Jayaram upgraded DVN to buy from hold, lowering the price target to $44 from $49, citing compelling valuation and free cash flow gains from a $1 billion optimization plan [4][5] - Devon achieved approximately 60% of its $1 billion optimization goal within six months, and Jayaram expects stable well productivity in 2026 and 2027 [5][6] - Jayaram is optimistic about Devon's acreage position in key regions and its potential for lower-risk, high-return drilling opportunities [7] Group 3: EOG Resources - EOG Resources (EOG) paid $545 million in dividends and repurchased $440 million in shares in Q3 2025, with a quarterly dividend of $1.02 per share, yielding 3.7% [9] - Siebert Williams Shank analyst Gabriele Sorbara reaffirmed a buy rating on EOG with a price target of $150, highlighting its ability to navigate commodity cycles and strong free cash flow generation [11] - EOG is committed to returning at least 70% of its free cash flow to shareholders, with the potential to return 100% based on its balance sheet strength [12] - The company is leveraging advanced technology to identify multiple development targets in the Delaware Basin and is ahead of its synergy targets from the Encino acquisition [13] Group 4: CVS Health - CVS Health (CVS) is undergoing a turnaround, expecting a mid-teens adjusted EPS CAGR through 2028, with a quarterly dividend of $0.665 per share, yielding 3.4% [15] - Mizuho analyst Ann Hynes reiterated a buy rating on CVS, raising the price target to $95, citing structural improvements in retail earnings [16] - CVS' mid-teens adjusted EPS CAGR target does not include potential share buybacks, which may occur once leverage targets are met [17] - The company anticipates a decline in the medical loss ratio by about 50 basis points in 2026, driven by better pricing and strategic exits from certain business segments [18] - CVS expects flat adjusted operating income growth in its Pharmacy and Consumer Wellness segment, improved by market share gains and cost savings [19]