3 Dividend stocks trade close to fair value

As 2025 gets off to a shaky start, many investors are likely feeling the pressure of heightened uncertainty. The S&P 500 And other major indexes are down year-to-date, led by sharp declines in tech heavyweights. NVIDIAwhich has fallen 13% from its 52-week high set a few days ago. Market sentiment was further clouded by a tepid December jobs report, rekindling fears of prolonged high interest rates.

For cautious investors who want to protect their portfolios, High-yield dividend stocks Trading near fair value can offer income and stability in these turbulent times.

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

Devon Energy broke its long-term downtrend

The Energy field With popular, 2025 has started on a strong note Energy Select Sector SPDR Fund ETF NYSEARCA: XLE Up 5.36% year-to-date, making it the top performing sector YTD. Devon Energy NYSE: DVN Within this space has been a fantastic one, growing over 12% this year.

Devon Energy Dividend Payments

Dividend yield
2.36%

Annual dividend
$0.88

Annual 3-year dividend growth
25.99%

Dividend payout ratio
16.33%

Recent dividend payments
30 December

DVN dividend history

As one of America’s largest independent oil and gas producers, Devon operates in highly productive areas such as the Delaware Basin.

of Devon Dividend yield is particularly attractive, combining a fixed and variable component linked to free cash flow. While its forward yield stands at 4.13%, it could rise significantly if oil prices continue to rise. After spending much of 2024 in decline, Devon recently broke out of a long-term downtrend, clearing a critical resistance level.

This technical change suggests further upside if the stock establishes a base above its breakout zone.

the analyst are bullish, with a moderate buy rating and price target of $49.43, offering additional upside potential.

CVS Health has emerged as an early outperformer in 2025

CVS Health Corporation NYSE: CVSA major player in America Health care industryBest known for its CVS Pharmacy locations, CVS Caremark, and Aetna health plans. The company faces significant challenges in 2024, including lower demand for Covid-related products and rising costs associated with its growing Medicare Advantage (MA) plans.

CVS Health Dividend Payments

Dividend yield
5.16%

Annual dividend
$2.66

Annual 3-year dividend growth
9.97%

Dividend payout ratio
67.51%

Next dividend payment
February 3

CVS Dividend History

These headlines underperformed the stock, but the narrative is starting to change. A Latest government proposals Renewed optimism for MA payouts to increase in 2026 helped the shares climb nearly 15% year-to-date through Monday’s close, bucking a broader market decline.

On the technical side, CVS has broken out of the consolidation base near $45 and is now approaching its 50-day simple moving average, indicating a strengthening momentum. CVS offers an impressive 5.16% dividend yield For income-focused investors, coupled with an attractive P/E ratio of 13.08.

Analysts are optimistic, a Moderate buy rating and outperforming the consensus price target by about 33%. As a defensive healthcare leader with better prospects, CVS could be a compelling choice for yield and value investors.

Ford Motor Company entered potentially deep value territory

Ford Motor Co. NYSE: FAn icon in Automotive sectorhas recently faced its own challenges. Over the past year, the stock has fallen nearly 16%, weighed down by rising recall and warranty costs and continued losses in its electric vehicle (EV) segment.

Ford Motor Dividend Payments

Dividend yield
6.13%

Annual dividend
$0.60

Annual 3-year dividend growth
81.71%

Dividend payout ratio
68.18%

Recent dividend payments
December 2

F dividend history

However, management has signaled a turnaround, projecting better EV margins by 2025 through cost reforms.

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 particularly attractive. Technically, the stock has established a support zone near $9.50, which could act as a double-bottom if the stock breaks out of near-term resistance near $10.

the analyst Bears on Ford, however, are assigning a reduce rating, but the consensus price target of $11.83 still represents an impressive upside from current levels. Ford may be worth considering for investors seeking a high-yield stock with potential value as it navigates its cost-cutting turnaround strategy.

Before you consider CVS Health, you may want to hear this.

MarketBeat keeps track of Wall Street’s top-rated and best-performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified Five stocks That top analysts are quietly telling their clients to buy now before the broader market hits… and CVS Health wasn’t on the list.

While CVS Health currently has a “medium buy” rating among analysts, top analysts believe these five stocks are better buys.

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