3 Dividends trade near fair value – Magic Post

With 2025 off to a volatile start, many investors are likely to feel the pressure of increasing uncertainty. The S&P 500 and other major indexes are down year to date, led by sharp declines in tech heavyweights like NVIDIA, which is down 13% from its 52-week high hit just days ago. Market sentiment was further impacted by December’s hot jobs report, which reignited fears of prolonged interest rate hikes.

For cautious investors looking to protect their portfolios, high-yield dividend stocks that trade near fair value can provide income and stability in these uncertain times.

Let’s take a closer look at three contenders, each offering attractive valuations based on P/E, technical positioning, and strong returns.

Devon Energy is breaking its long-term downtrend

The energy sector has started 2025 strong, with the popular Energy Select Sector SPDR Fund ETF NYSEARCA:XLE Up 5.36% year-to-date, making it the best-performing sector since the beginning of the year. Devon Energy New York Stock Exchange: Buried It has been a standout in this space, up more than 12% this year.

As one of the largest independent oil and gas producers in the United States, Devon operates in highly productive regions such as the Delaware Basin.

Devon’s dividend yield is particularly attractive, as it combines a fixed and variable component tied to free cash flow. While the forward yield is 4.13%, it could rise significantly if oil prices continue to rise. After spending most of 2024 in decline, Devon recently broke out of a long-term downtrend, crossing a critical resistance level.

This technical shift indicates further upside if the stock establishes a base above the breakout zone.

Analysts are bullish, with a Moderate Buy rating and a price target of $49.43, providing additional upside potential.

CVS Health stands out as a top early performer in 2025

CVS Health Company New York Stock Exchange: CVSa dominant player in the healthcare industry in the United States, is best known for its CVS Pharmacy locations, CVS Caremark, and Aetna health plans. The company faced significant challenges in 2024, including lower demand for coronavirus-related products and higher costs associated with booming Medicare Advantage (MA) plans.

These headwinds caused the stock’s performance to decline, but the narrative is starting to change. The government’s recent proposal to increase MA payments in 2026 has renewed optimism, helping shares rise nearly 15% year-to-date to Monday’s close, defying the broader market decline.

On the technical side, CVS broke out of the consolidation base near $45 and is now approaching the 50-day SMA, indicating strength in momentum. CVS offers an impressive 5.16% dividend yield for income-focused investors, paired with an attractive price-to-earnings ratio of 13.08.

Analysts are bullish, maintaining a moderate buy rating and forecasting an upside of around 33% to the consensus price target. As a defensive healthcare leader with improving prospects, CVS could be a compelling choice for yield and value investors.

Ford Motor Company is entering an area of ​​deep value potential

Ford Motor Company New York Stock Exchange: Fone of the icons of the automotive sector, has recently faced its share of challenges. Over the past year, the stock has fallen about 16%, hurt by higher recall and warranty costs and continued losses in the electric vehicle sector.

However, management has signaled a turning point, forecasting better margins for electric vehicles by 2025 through cost improvements.

Valuation metrics highlight Ford’s appeal to bargain hunters, with a P/E of 11.07 and a forward P/E of just 5.74. For income seekers, Ford’s 6.18% dividend yield is especially tempting. Technically, the stock has established a support area near $9.50, which could serve as a double bottom if the stock breaks through near-term resistance near $10.

Analysts are lukewarm on Ford, despite assigning a downgrade rating, but the consensus price target of $11.83 still indicates impressive upside from current levels. Ford may be worth considering for investors looking for stocks with high yield and value potential as it navigates its cost-cutting strategy.

Before you consider CVS Health, you’ll want to hear this.

MarketBeat tracks the highest-rated and best-performing research analysts on Wall Street and the stocks they recommend to their clients on a daily basis. MarketBeat identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches up… and CVS Health was not on the list.

While CVS Health currently has a “Moderate Buy” rating among analysts, top-rated analysts believe these five stocks are better buys.

View the five stocks here

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