Investing
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Quality stocks yielding over 6% generate higher returns than the S&P 500.
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Analysts are bullish on these stocks and have upgraded the price target.
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Dividend stocks are one way to shield yourself from the market volatility. While all stocks carry a certain element of risk, dividend stocks generate steady income for you, ensuring you’re making your money work even if the market is in a slump. If you want to get more money from your investments, build a portfolio of dividend stocks.
Wall Street analysts love dividend stocks and help investors make the right investment decisions through their market opinions. Here are three high-yield dividend stocks Wall Street analysts are betting on.
Pfizer
Pharmaceutical company Pfizer Inc. (NYSE: PFE) saw tremendous highs during the pandemic. But as the pandemic faded, the company started seeing a dip in revenue and profits, disappointing investors. However, this was expected. The company could not keep growing by simply focusing on COVID-19 vaccines. But, investors need to have a bigger picture of Pfizer. It is so much more than the vaccines and has an impressive oncology drugs pipeline which can continue driving revenue and growth.
It has 108 candidates in the pipeline and 30 are in phase 3. A majority of them are focused on oncology out of which its Ibrance breast cancer therapy and Xtandi for advanced prostate cancer are the top drugs.
It has a super generous dividend of around 7.3% and has increased dividends for 16 years. If you invest $10,000, you earn $730 and the management is committed to growing dividends over time. Even if the company cuts the dividend by half, it’d still be higher than the S&P 500’s 1.5%. But if the company decides to grow the dividend, you could enjoy a yield of 10% in the future.
Jefferies has a buy rating for the stock with a price target of $33 and Guggenheim has a buy rating with a price target of $23. Further, Citi has a neutral rating with a price target of $25.
Currently trading for $23, PFE stock is down 12.25% year-to-date and over 16% in 12 months. I think the stock is undervalued and worth an addition to your portfolio. When it comes to dividends, Pfizer doesn’t disappoint.
Verizon Communications
With an attractive dividend yield of 6.19%, Verizon Communications Inc. (NYSE: VZ) is a high-yield dividend stock that has become a part of several portfolios. The telecommunications giant has paid dividends for 42 consecutive years and despite strategic investments, it has remained committed to rewarding shareholders. It paid over $11.2 billion in dividends in 2024.
The company is steadily growing its fiber-optic business and ended the first quarter with over 12.6 million broadband connections, up 13.7% year-over-year. It reported a revenue of $25.6 billion in the quarter and saw a 2.7% year-over-year jump in the wireless service sales revenue. It has acquired Frontier Communications and the deal is expected to close in 2026. Verizon Communications expects to see about 10 million new broadband connections, driven by this acquisition.
The telecommunications industry plays a huge role in our lives since people are not ready to give up their access to communication services, even in a tariff-driven market. Verizon Communications has a payout ratio of 56.15% and if the cash flow improves, we could see the dividends grow.
VZ stock is exchanging hands for $43.80, the stock is up 8.93% year-to-date. Wall Street analysts love this stock and have upgraded the rating. Tigress Financial has a buy rating for the stock with a price target of $56. Scotiabank has a sector performance rating with a price target of $48.50. Goldman Sachs has a buy rating for the stock with a price target of $52.
Enterprise Products Partners
A leader in the energy market, Enterprise Products Partners L.P. (NYSE: EPD) owns over 50,000 miles of pipelines that are used to transport crude oil, natural gas liquids, and natural gas. It is a hot dividend stock with an attractive yield of 6.80% and the company has increased the dividends for 26 consecutive years.
The energy sector is gaining importance and has seen growing interest from investors. It is only going to keep growing in the coming years and Enterprise Products Partners is in a strong position to benefit from it. The company is investing in capital projects and expects $6 billion worth of projects to go online and start generating cash flow this year.
As of writing, EPD costs $31.46 and has remained flat in 2025. However, it is up 10.23% in 12 months and over 60% in five years. The company is a midstream player which gives it stability even in times of market volatility. It generates the majority of its revenue from the fees generated through contracts.
Hence, even if the oil prices cash, Enterprise Products Partners will continue to generate income. This nature of the business makes it stand out in the volatile and uncertain markets. The business is recession-resistant and has been able to generate consistent cash flow each year.
For the first quarter, the company reported a net income of $1.4 billion and generated a cash flow of $2 billion, up 5% year-over-year. Scotiabank has a price target of $36 and a sector perform rating while Barclays has a price target of $36 with an overweight rating.
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