Investing
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Investors love dividend stocks, especially those with high yields, because they provide a substantial income stream and offer significant total return potential. Total return includes interest, capital gains, dividends, and distributions realized over time. In other words, the total return on an investment or a portfolio consists of income and stock appreciation. Let’s examine the concept of total return. If you purchase a stock at $20 that pays a 3% dividend ($0.60 per share) and the price rises to $22 in a year, your total return is ($22 + $0.60 – $20) = 13%. This combines the price appreciation and the dividend received.
24/7 Wall St. Key Points:
- Halfway through a volatile 2025, some top high-yield dividend stocks are down big
- Buying quality dividend stocks at or near 52-week lows can be a total return home run investment
- With interest rates likely to come down, high-yield dividend stocks should gain a tailwind
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There are over 12,000 publicly traded stocks in the United States; not even the most intelligent investors with the best tools can find them all immediately. Many investors and traders typically maintain a small list of key stocks they follow when seeking capital gains or high-yield dividends. We decided to screen our 24/7 Wall St. high-yield database, looking for quality companies that, for whatever reason, had been hit hard this year. Surprisingly, five companies that we have followed for years here at 24/7 Wall St. have been hit hard, offering growth and income investors incredible entry points. Despite taking a hit this year, all five are rated Buy at the top Wall Street firms we cover.
Why do we cover dividend stocks?
Dividend stocks offer investors a reliable source of passive income. Passive income is characterized by its ability to generate revenue without requiring the earner’s continuous active effort, making it a desirable financial strategy for those seeking to diversify their income streams or achieve financial independence.
Conagra Brands
Conagra manufactures and sells products under various brands in supermarkets, restaurants, and foodservice establishments. This is the ideal company for nervous investors, as it pays shareholders a substantial and secure dividend, which has risen due to the stock price drop. However, the payout’s sustainability is supported by a payout ratio of about two-thirds of earnings. Conagra Brands, Inc. (NYSE: CAG) and its subsidiaries operate primarily as a consumer packaged goods food company in the United States.
The company operates through four segments:
- Grocery & Snacks
- Refrigerated & Frozen
- International
- Foodservice
The Grocery & Snacks segment primarily offers shelf-stable food products through various retail channels.
The Refrigerated & Frozen segment provides temperature-controlled food products through various retail channels.
The International segment offers food products in various temperature states through retail and food service channels outside the United States.
The food service segment offers branded and customized food products, including meals, entrees, sauces, and various custom-manufactured culinary products packaged for restaurants and other food service establishments.
The company sells its products under these familiar brands:
- Birds Eye
- Marie Callender’s
- Duncan Hines
- Healthy Choice
- Slim Jim
- Reddi-Wip
- Angie’s
- BOOMCHICKAPOP
Barclays has an Overweight rating with a target price of $26.
Devon Energy
Down nearly 33% from its 52-week high, this S&P 500 energy stock has been impacted by volatility in oil and gas prices, despite its attractive dividend policy, which includes a fixed dividend that has more than doubled since 2021, as well as a variable dividend component. Devon Energy Corporation (NYSE: DVN) is an oil and gas producer in the United States with a diversified multi-basin portfolio headlined by an acreage position in the Delaware Basin. The Company is primarily engaged in the exploration, development, and production of oil, natural gas, and natural gas liquids (NGLs).
It owns a portfolio of assets located in the:
- Delaware Basin,
- Rockies
- Eagle Ford
- Anadarko Basin
The Delaware Basin operates in southeast New Mexico and across the state line into west Texas. It offers exploration and development opportunities from many geologic reservoirs and play types, including the oil-rich Wolfcamp, Bone Spring, Avalon, and Delaware formations.
The company’s Rockies development consists of its Williston Basin and Powder River Basin assets.
The Eagle Ford operations are located in Texas’s DeWitt and Karnes counties.
The Anadarko Basin development is located in western Oklahoma. It has a joint venture with Dow to develop a portion of its acreage in the Anadarko Basin.
Piper Sandler has an Overweight rating and a huge $58 target price.
Edison International
Trading near a 52-week low with one of the highest dividends in the utility sector, this is a strong idea for the rest of 2025. Edison International Inc. (NYSE: EIX) is an electric utility holding company focused on providing clean and reliable energy and energy services through its independent companies. It is the parent holding company of Southern California Edison Company (SCE) and Trio.
SCE is a public utility primarily engaged in the business of supplying and delivering electricity to an approximately 50,000 square mile area across Southern, Central, and Coastal California.
Trio is a global energy advisory firm providing integrated sustainability and energy advisory services to large commercial, industrial, and institutional organizations in North America and Europe.
Trio provides integrated strategy and implementation solutions in:
- Sustainability
- Renewables
- Energy procurement
- Conventional supply
- Energy optimization
- Transportation electrification
Barclays has an Overweight rating with a $67 target price objective.
Healthpeak Properties
This leading company invests in real estate related to the healthcare industry, including senior housing, life science, and medical offices. The shares have lagged peers in 2025 due to lower-than-expected rent increases compared to other REITs. It currently trades at a 40% discount to its fair value. Healthpeak Properties, Inc. (NYSE: DOC) is a fully integrated real estate investment trust (REIT).
The Company acquires, develops, owns, leases, and manages healthcare real estate across the United States. It owns, operates, and develops real estate focused on healthcare discovery and delivery.
Healthpeak Properties segments include:
- Lab
- Outpatient medical
- Continuing care retirement community (CCRC).
The Outpatient medical segment owns, operates, and develops outpatient medical buildings, hospitals, and lab buildings.
The lab segment properties contain laboratory and office space, and are leased primarily to:
- Biotechnology
- Medical device and pharmaceutical companies
- Scientific research institutions
- Government agencies
- Organizations involved in the life science industry
Its CCRC segment is a retirement community that offers independent living, assisted living, memory care, and skilled nursing units, providing a continuum of care within an integrated campus.
Baird has an Outperform rating and a $22 target.
Target
Target Corporation is an American retail corporation with a chain of discount department stores and hypermarkets. This company remains a solid and safe retail total return play, and after a rough first half of 2025, down almost 24%, it is a stellar buy. Target Corp. (NYSE: TGT) is a general merchandise retailer in the United States. It offers apparel for women, men, boys, girls, toddlers, infants, and newborns, as well as jewelry, accessories, and shoes. The company also offers a range of beauty and personal care products, baby gear, cleaning supplies, paper products, and pet care products.
Target also provides:
- Dry grocery, dairy, frozen food, beverages, candy, snacks, deli, bakery, meat, and food service
- Electronics, which includes video game hardware and software
- Toys, entertainment, sporting goods, and luggage
- Furniture, lighting, storage, kitchenware, small appliances, home décor, bed, and bath
- Home Improvement
- School/office supplies
- Greeting cards, party supplies, and other seasonal merchandise
In addition, the company sells merchandise through periodic design and creative partnerships, shop-in-shop experiences, and in-store amenities. It also sells its products through its stores and digital channels, including Target.com.
The company suffered a “Bud Light” moment a few years back after the disastrous merchandising of LGBTQ products, which struck a nerve among many shoppers. While not as severe as the beer giants’ conundrum, it was a significant negative that has seemingly subsided.
Guggenheim has assigned a Buy rating, accompanied by a $115 target.
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