Sunny Isles Seashore, Florida, Miami, RK Facilities shopping center, enterprise signal, CVS Pharmacy retail retailer, drugstore chain prescription medication. (Picture by: Jeffrey Greenberg/Common Pictures Group by way of Getty Pictures)
Jeff Greenberg | Common Pictures Group | Getty Pictures
The U.S. Federal Reserve lower key rates of interest by 25 foundation factors, decreasing borrowing prices for the third time in 2025. Given the decrease rate of interest backdrop (which reduces the attraction of fixed-income investments) and a unstable inventory market, some traders would possibly need to take into account including dividend shares to their portfolios to make sure secure earnings and improve total returns.
The inventory picks of high Wall Avenue analysts might help traders choose enticing dividend-paying firms.
Listed here are three dividend-paying shares, highlighted by Wall Avenue’s high execs, as tracked by TipRanks, a platform that ranks analysts primarily based on their previous efficiency.
Devon Power
This week’s first dividend choose is Devon Power (DVN), an unbiased oil and pure gasoline exploration and manufacturing (E&P) firm. Within the third quarter of 2025, Devon returned $401 million to shareholders by way of share repurchases and dividends. The corporate’s fastened quarterly dividend of $0.24 per share (annualized dividend of $0.96 per share) signifies a yield of two.5%.
Just lately, JP Morgan analyst Arun Jayaram upgraded Devon Power inventory to purchase from maintain, although he lowered the worth goal to $44 from $49. TipRanks’ AI Analyst has an “outperform” score on DVN inventory with a value goal of $43.
Jayaram defined that his score improve was primarily based on DVN’s compelling valuation in comparison with its friends, supported by free money circulation good points from the corporate’s $1 billion enterprise optimization plan. The 5 star analyst famous that Devon achieved about 60% of its $1 billion objective in a bit over half a 12 months following the plan’s formal rollout.
The analyst famous that Devon’s Delaware Basin effectively productiveness was adversely impacted by the corporate’s deal with finishing the next proportion of Wolfcamp B wells. That stated, Jayaram expects effectively productiveness to be secure in 2026 and 2027 because of a “steadier mixture of secondary zones” in comparison with 2025.
General, Jayaram is bullish on Devon, on condition that it has a top-quality acreage place in a very powerful components of the Delaware Basin, Bakken, and Eagle Ford shale areas. Furthermore, the corporate has the choice to develop within the STACK and Powder River Basins.
“We imagine DVN’s core franchise belongings have the potential to offer a big stock of lower-risk, excessive rate-of-return improvement drilling alternatives which might be important given the depleting nature of an E&P’s asset base,” stated Jayaram.
Jayaram ranks No. 655 amongst greater than 10,100 analysts tracked by TipRanks. His scores have been worthwhile 59% of the time, delivering a median return of 10.3%. See Devon Power Statistics on TipRanks.
EOG Assets
The subsequent dividend-paying inventory is EOG Assets (EOG), a crude oil and pure gasoline exploration and manufacturing firm with reserves within the U.S. and Trinidad. Within the third quarter of 2025, EOG paid $545 million in common dividends and repurchased shares price $440 million. Final month, EOG introduced a quarterly dividend of $1.02 per share, payable on January 30, 2026. At an annualized dividend of $4.08, EOG’s yield stands at 3.7%.
Siebert Williams Shank analyst Gabriele Sorbara reaffirmed a purchase score on EOG inventory with a value goal of $150. The inventory additionally scores an “outperform” score from TipRanks’ AI Analyst, with a value goal of $127.
Sorbara views EOG as a “premier” large-cap firm with the flexibility to navigate by way of commodity cycles, supported by its stable stability sheet and robust stock. The analyst additionally famous the corporate’s large free money flow-generating capabilities.
Notably, Sorbara highlighted EOG’s dedication to return a minimum of 70% of its free money circulation to shareholders yearly by way of dividends and share buybacks. In actual fact, the vitality firm has the pliability to return 100% of free money circulation primarily based on its stability sheet power.
The 5-star analyst additionally famous EOG’s efforts to leverage superior expertise to seize additional alternatives within the Delaware Basin, with the corporate now figuring out greater than 9 totally different improvement targets. Amongst different positives, Sorbara additionally talked about that EOG is monitoring forward of its goal for the primary 12 months with regard to the $150 million synergies from its Encino acquisition. Extra financial savings are anticipated from elements like improved infrastructure, manufacturing effectivity, and advertising offers by way of EOG’s midstream community.
Sorbara ranks No. 225 amongst greater than 10,100 analysts tracked by TipRanks. His scores have been profitable 61% of the time, delivering a median return of 18.4%. See EOG Assets Possession Construction on TipRanks.
CVS Well being
Lastly, let’s take a look at pharmacy chain CVS Well being (CVS). The corporate’s turnaround efforts are serving to it drive improved efficiency in a difficult enterprise backdrop. At its Investor Day occasion on December 9, CVS Well being offered optimistic updates and said that it expects to attain a mid-teens adjusted earnings per share (EPS) compound annual progress price (CAGR) by way of 2028. At a quarterly dividend of $0.665 per share (annualized dividend of $2.66 per share), CVS inventory affords a yield of three.4%.
Following Investor Day, Mizuho analyst Ann Hynes reiterated a Purchase score on CVS inventory and raised her value goal to $95 from $88. “CVS is our high choose in our protection universe,” stated the 5-star analyst, and cited structural enchancment in retail earnings forecast as the explanation for her revised value goal. Apparently, TipRanks’ AI Analyst has a “impartial” score on CVS with a value goal of $81.
Hynes famous that CVS’ mid-teens adjusted EPS CAGR goal doesn’t bear in mind any extra share buybacks, which she expects to happen as soon as the corporate achieves its leverage targets, probably by the top of subsequent 12 months.
The analyst additionally highlighted the corporate’s efforts to enhance margins of the Healthcare Advantages (HCB) phase, which has been underneath strain because of a continued rise within the medical loss ratio (MLR). This ratio is predicted to say no by about 50 foundation factors in 2026 because of higher pricing, decreased advantages underneath Medicare Benefit (MA) plans, and the corporate’s choice to exit the Well being Insurance coverage Alternate (HIX) enterprise.
Hynes additionally famous the development in CVS’ Pharmacy and Client Wellness (PCW) phase outlook, with the corporate now anticipating flat adjusted working earnings progress in comparison with the earlier steering of a mid-single-digit decline. This enchancment is pushed by market share good points, a greater reimbursement backdrop, and value financial savings.
Hynes ranks No. 733 amongst greater than 10,100 analysts tracked by TipRanks. Her scores have been profitable 60% of the time, delivering a median return of 8.5%. See CVS Well being Choices Exercise on TipRanks.
