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For those seeking both substantial income and growth from their investments, certain stocks stand out as potential candidates for both. Here are three high-yield dividend NASDAQ Utility Stock that Wall Street believes might achieve more than 20% growth.
- Brookfield Renewable
Brookfield Renewable (NASDAQ:BEP) offers a forward distribution yield of nearly 5.9% for its limited partnership units, while its corporate entity, traded under BEPC, has a forward yield slightly above 5%. Despite a year-to-date decline in stock performance, analysts project a potential upside of over 21% for both Brookfield Renewable's LP and corporate stocks over the next 12 months.
The potential for significant gains is supported by rising demand for renewable energy and strategic acquisitions, including a planned acquisition of approximately 53% of global renewable energy provider Neoen, expected to close in the fourth quarter of 2024. Even if Brookfield Renewable does not meet analysts' growth expectations, it remains a reliable choice due to its contracted cash flows, which support consistent distributions. Historically, Brookfield Renewable has increased its distribution per unit by 6% annually since 2001, aiming for annual growth between 5% and 9% long-term.
- Chevron
Chevron (CVX) is renowned for its appeal to income seekers, currently offering a forward dividend yield of 4.5%. Despite recent declines in its share price, Wall Street remains optimistic. Out of 24 analysts surveyed, 16 rate Chevron as a strong with an average 12-month price projection suggesting a 21% increase from the current level.
Chevron’s upcoming acquisition of Hess could face hurdles due to a dispute with ExxonMobil over Hess' stake in a joint operation. However, Chevron’s ability to sustain its dividend remains robust, regardless of the merger's outcome.
- Devon Energy
Devon Energy’s (DVN) dividend consists of a fixed portion and a variable component linked to excess free cash flow, making its forward yield difficult to pinpoint. Nevertheless, it is anticipated to be at least 4% or higher. Devon Energy's share price has experienced significant fluctuations, but analysts foresee a potential upside of nearly 29% over the next year.
The company recently achieved record oil production and revised its 2024 production outlook upward. Additionally, Devon’s acquisition of Grayson Mill Energy’s Williston Basin business, expected to close in the third quarter, is set to enhance production capabilities. Devon has also increased its share repurchase authorization by 67%, further benefiting shareholders.
These stocks offer a combination of attractive dividends and potential for growth, making them notable options in the current market landscape.
