Sunny Isles Seaside, 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)
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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 enchantment of fixed-income investments) and a risky inventory market, some buyers would possibly wish to take into account including dividend shares to their portfolios to make sure steady earnings and improve total returns.
The inventory picks of prime Wall Avenue analysts will help buyers choose enticing dividend-paying corporations.
Listed below are three dividend-paying shares, highlighted by Wall Avenue’s prime professionals, as tracked by TipRanks, a platform that ranks analysts based mostly on their previous efficiency.
Devon Power
This week’s first dividend decide is Devon Power (DVN), an unbiased oil and pure fuel exploration and manufacturing (E&P) firm. Within the third quarter of 2025, Devon returned $401 million to shareholders by share repurchases and dividends. The corporate’s mounted quarterly dividend of $0.24 per share (annualized dividend of $0.96 per share) signifies a yield of two.5%.
Not too long ago, JP Morgan analyst Arun Jayaram upgraded Devon Power inventory to purchase from maintain, although he lowered the value 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 based mostly on DVN’s compelling valuation in comparison with its friends, supported by free money move positive factors 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 little bit over half a yr following the plan’s formal rollout.
The analyst famous that Devon’s Delaware Basin properly productiveness was adversely impacted by the corporate’s deal with finishing a better proportion of Wolfcamp B wells. That stated, Jayaram expects properly productiveness to be steady in 2026 and 2027 resulting from a “steadier mixture of secondary zones” in comparison with 2025.
General, Jayaram is bullish on Devon, provided that it has a top-quality acreage place in an important elements 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 consider DVN’s core franchise belongings have the potential to supply a big stock of lower-risk, excessive rate-of-return improvement drilling alternatives which are 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 rankings have been worthwhile 59% of the time, delivering a median return of 10.3%. See Devon Power Statistics on TipRanks.
EOG Assets
The following dividend-paying inventory is EOG Assets (EOG), a crude oil and pure fuel 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 power to navigate by commodity cycles, supported by its strong 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 no less than 70% of its free money move to shareholders yearly by dividends and share buybacks. In truth, the power firm has the pliability to return 100% of free money move based mostly on its stability sheet power.
The 5-star analyst additionally famous EOG’s efforts to leverage superior know-how to seize additional alternatives within the Delaware Basin, with the corporate now figuring out greater than 9 completely different improvement targets. Amongst different positives, Sorbara additionally talked about that EOG is monitoring forward of its goal for the primary yr with regard to the $150 million synergies from its Encino acquisition. Extra financial savings are anticipated from components like improved infrastructure, manufacturing effectivity, and advertising and marketing offers by EOG’s midstream community.
Sorbara ranks No. 225 amongst greater than 10,100 analysts tracked by TipRanks. His rankings 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 constructive updates and acknowledged that it expects to attain a mid-teens adjusted earnings per share (EPS) compound annual progress price (CAGR) by 2028. At a quarterly dividend of $0.665 per share (annualized dividend of $2.66 per share), CVS inventory gives 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 prime decide in our protection universe,” stated the 5-star analyst, and cited structural enchancment in retail earnings forecast as the rationale 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 keep in mind any further share buybacks, which she expects to happen as soon as the corporate achieves its leverage targets, probably by the tip of subsequent yr.
The analyst additionally highlighted the corporate’s efforts to enhance margins of the Healthcare Advantages (HCB) section, which has been below strain resulting from a continued rise within the medical loss ratio (MLR). This ratio is predicted to say no by about 50 foundation factors in 2026 resulting from higher pricing, lowered advantages below Medicare Benefit (MA) plans, and the corporate’s determination to exit the Well being Insurance coverage Trade (HIX) enterprise.
Hynes additionally famous the advance in CVS’ Pharmacy and Client Wellness (PCW) section outlook, with the corporate now anticipating flat adjusted working earnings progress in comparison with the earlier steerage of a mid-single-digit decline. This enchancment is pushed by market share positive factors, a greater reimbursement backdrop, and price financial savings.
Hynes ranks No. 733 amongst greater than 10,100 analysts tracked by TipRanks. Her rankings have been profitable 60% of the time, delivering a median return of 8.5%. See CVS Well being Choices Exercise on TipRanks.
