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Forbes
3 days ago
- Business
- Forbes
6 Top-Yielding Dividend Stocks To Buy And Future-Proof Your Income
Passive income is the ultimate financial protection. And high-yielding dividend stocks are a great source for that low-maintenance cash flow. Choose the right companies, and you have a stream of rising cash payments you can reinvest or use to cover your bills. Choosing the right stocks is always the trick with investing. The best dividend stocks for you should align with your goals and risk tolerance, but the six introduced here may be worthy candidates. All pay yields of at least 3%—that's more than double the S&P 500 average—and have grown their revenue, free cash flow, dividend payments and market capitalization over the last five years. 6 Best High-Yielding Dividend Stocks For Future Income The table below highlights six top dividend stocks analysts love. A review of each company follows. Metrics are sourced from company reports and unless noted otherwise. For more investing ideas, see this list of the best stocks for 2025. 1. AbbVie (ABBV) AbbVie by the numbers: AbbVie is a global pharmaceutical company focusing on immunology, oncology, neuroscience, eye care and anti-aging treatments. AbbVie products are sold into 175 different countries. AbbVie has long been a popular choice among dividend investors. The pharma company pays $6.56 per share annually, and has implemented yearly dividend raises for more than 50 years. ABBV's stock price has also doubled over the past five years. AbbVie is successfully managing through the 2023 loss of patent protection on its hit product Humira. The strategy has included acquisitions and new immunology treatment launches. AbbVie merged with Botox-maker Allergan in 2020 to diversify its portfolio, and introduced Rinvoq and Skyrizi, which have now become top-selling treatments. AbbVie's revenue dipped 6.4% in 2023 but has since returned to growth. The company now expects adjusted diluted EPS of $12.12 to $12.32 in 2025, up from $10.12 in the prior year. 2. Phillips 66 (PSX) Phillips 66 by the numbers: Phillips 66 is an oil and gas company with five operating segments: midstream, chemicals, refining, marketing and specialties and renewable fuels. The company's assets include 70,000 miles of pipeline systems, 11 refineries and 1.8 million barrels per day (BPD) of crude capacity. The fuel brand portfolio includes Phillips 66, Conoco, 76 and JET. Phillips 66 pays shareholders $4.80 annually and has raised its dividend for 13 years. The company has also committed to keeping its dividend competitive and returning more than 50% of net operating cash flow to shareholders. The remaining operating cash flow is earmarked for debt reduction, share repurchases and growth initiatives. Phillips 66 is targeting total debt of $17 billion by 2027, down from the year-end 2024 balance of $20.1 billion. The focus on balance sheet health is appealing, as is Phillips 66's differentiated and integrated portfolio. Most of the EBITDA (38%) comes from refining, and the rest is split as double-digit percentages across marketing and specialties, midstream and chemicals. Over the last few years, Phillips 66 has made strategic divestitures and acquisitions to reduce costs, improve refinery utilization and improve overall value creation. 3. Chevron (CVX) Chevron by the numbers: Chevron is an integrated energy and chemicals company with two primary business segments: upstream and downstream. Upstream explores, develops, produces and transports crude oil and natural gas. Downstream refines and markets crude oil. Chevron is a solid choice for dividend investors who can handle energy sector volatility, thanks to its 4.5% yield, paying $6.84, and a 38-year history of raising shareholder payouts. The company is a major player in the global energy space and a top-five holding in Berkshire Hathaway's stock portfolio. Chevron relies on its integrated business model, financial strength and capital discipline to protect shareholder returns when oil prices decline. Chevron also recently acquired Hess Corporation, which is expected to provide significant cost synergies and improve long-term shareholder returns. Chevron CFO Eimear Bonner said the acquisition should "drive significant free cash flow and production growth into the 2030s." 4. Nexstar Media Group (NXST) Nexstar Media Group by the numbers: Nexstar is a diversified media company that produces and distributes news, sports and entertainment programming via owned and partner television stations and a suite of websites and mobile applications. The company generates revenue from advertising sales and retransmission fees. Cable and satellite TV providers pay broadcasters retransmission fees to provide broadcast content to subscribing customers. Nexstar pays an annual dividend of $7.44 per share and has raised its payout for 12 consecutive years. The company also spends a sizable portion of its adjusted free cash flow on share repurchases, which have reduced the share count by 34% since 2019. Nexstar has the largest local station network among major broadcast network owners like Televisa Univision, TEGNA and Fox. The company also owns two popular national networks, the CW and News Nation. These properties reach a combined 186 million households. The breadth of the portfolio is a competitive advantage—it's appealing to advertisers and provides operating cost efficiencies. Nexstar enjoys a high percentage of recurring revenue, high margins and strong cash flow. In 2024, recurring revenue was greater than 50%, the adjusted EBITDA margin was 37% and adjusted free cash flow topped $1.2 billion. The ad revenue is stable, but the digital portfolio and retransmission provide upside. Retransmission fees are negotiated at contract renewals, usually for three-year terms. In 2025, Nexstar will renew 60% of its subscriber base. 5. Fidelity National Financial (FNF) Fidelity National Financial by the numbers: Fidelity National Financial sells title insurance, closing and escrow services, annuities and life insurance. Fidelity pays an annual dividend of $2 per share and has raised its payout annually for 13 years. Title insurance is Fidelity's primary product, and the company enjoys top market share in the residential purchase, refinance and commercial markets. By state, Fidelity is the first or second market-share leader in 39 states. An industry-leading pretax title margin complements the strong competitive positioning and contributes to the company's strong free cash flow. Majority-owned subsidiary F&G Annuities & Life has also performed well for Fidelity, producing strong annuity sales and contributing $89 million or 28% to second quarter adjusted net earnings. 6. Clearway Energy (CWEN) (CWEN.A) Clearway Energy by the numbers: Clearway develops clean energy projects and produces clean energy through its portfolio of wind and solar assets. Clearway Energy has two share classes, A and C. The Class A shares (CWEN) have most of the voting power and higher trading volume. As a result, CWEN shares cost slightly more than CWEN.A shares. The distinction matters if you want to maximize your dividend yield. CWEN and CWEN.A have paid $1.71 per share over the past 12 months, but CWEN.A shares cost less and therefore have a higher yield. Clearway Energy is interesting because the company has strong revenue and cash flow growth and a commitment to raising its dividend—all packaged nicely within the renewable energy space. The company is securing future growth by optimizing its assets with repowerings, retrofits and capacity expansions. Clearway Energy also partners with sponsors on projects and pursues acquisitions independently. During its last earnings conference, Clearway raised its CAFD (cash available for distribution) guidance for the year and expressed confidence in meeting its 2027 CAFD per share targets. Bottom Line The best high-yield dividend stocks provide financial security. Opt for companies with a demonstrated commitment to increasing their dividends so you can enjoy those higher yields for years to come.
The Australian
5 days ago
- Business
- The Australian
Rock Yarns: ADX Energy
Stock analysis veteran and lover of the resources game, Peter Strachan is back for another instalment of the Rock Yarns podcast. In this episode, Peter chats with Ian Tchacos, executive chairman of European-focused gas producer and explorer, ADX Energy (ASX:ADX). ADX is exploring shallow gas prospects in Austria's Vienna Basin, where it is the most active operator. Using advanced seismic, the company has identified seven near-term drill targets in areas previously overlooked. The initial program plans to drill three low-cost wells located close to existing pipelines. ADX is also advancing exploration offshore Sicily, targeting shallow gas and oil near existing infrastructure. Tune into this episode to hear what the company has been up to. This podcast was developed in collaboration with ADX Energy, a Stockhead advertiser at the time of publishing. The interviews and discussions in this podcast are opinions only and not financial or investment advice. Listeners should obtain independent advice based on their own circumstances before making any financial decisions.
Business Insider
6 days ago
- Automotive
- Business Insider
Is Now the Time to Buy Tesla Stock (TSLA)? TipRanks AI Analyst Says Yes
Tesla (TSLA) remains one of Wall Street's most debated stocks. While analyst opinions are mixed, TipRanks' A.I. analyst maintains an Outperform rating with a $341 price target, implying over 10% upside and well above the Wall Street consensus of $310.84. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. For context, TipRanks' A.I. Stock Analysis provides automated, data-backed evaluations of stocks across key metrics, offering users a clear and concise view of a stock's potential. AI Score Spotlights Latest Earnings Tesla stock earns a solid score of 73 out of 100 on the A.I. tool. Tesla's overall rating is supported by its financial performance which emphasizes encouraging growth prospects in its autonomous driving and energy businesses. Notably, Tesla's adjusted earnings per share came in at $0.40, matching analysts' expectations. However, the bottom line fell 23% compared to the same period last year. Additionally, the tool highlights Tesla's latest earnings call summary, which carries a positive signal. Below is the screenshot for reference. These fundamentals paint a positive long-term picture. However, from a technical and valuation standpoint, there are notable concerns. Technical indicators currently signal bearish trends. Moreover, Tesla's elevated price-to-earnings (P/E) ratio of 180 raises the possibility that the stock may be overvalued in the near term, pointing to potential short-term pressure on the stock. Wall Street Is Also Bullish On Monday, longtime Tesla bull and Wedbush analyst Daniel Ives reiterated his Buy rating, implying over 60% upside from the current levels. Ives stated that the Tesla board's approval of Elon Musk 's compensation package has cleared a significant overhang, potentially boosting investor confidence and removing a key source of uncertainty around the stock. Similarly, Piper Sandler's Alexander Potter also reaffirmed his Buy rating on TSLA stock. Potter advised investors not to overreact to the recent Autopilot-related jury verdict against Tesla in Florida, stating that the case is less significant than headlines suggest. Is Tesla Stock a Good Buy? According to TipRanks, TSLA stock has received a Hold consensus rating, with 14 Buys, 15 Holds, and eight Sells assigned in the last three months. The average Tesla stock price target is $310.84, suggesting a potential downside of 1.6% from the current level.
Globe and Mail
03-08-2025
- Business
- Globe and Mail
TELUS International Reports Q2 2025 Financial Results with Increased Revenue but Net Loss
Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. TELUS International (CDA) ( (TSE:TIXT)) has issued an update. On August 1, 2025, TELUS International (CDA) Inc. released its unaudited financial results for the three and six months ended June 30, 2025. The company reported a revenue increase compared to the previous year, but faced a net loss due to higher operating expenses, including significant amortization and impairment costs. This financial performance may impact the company's market positioning and stakeholder confidence. The most recent analyst rating on (TSE:TIXT) stock is a Buy with a C$6.50 price target. To see the full list of analyst forecasts on TELUS International (CDA) stock, see the TSE:TIXT Stock Forecast page. Spark's Take on TSE:TIXT Stock According to Spark, TipRanks' AI Analyst, TSE:TIXT is a Neutral. TELUS International's stock is bolstered by strong cash flow and solid technical indicators, suggesting potential for future gains. However, challenges in profitability, valuation concerns due to a negative P/E ratio, and financial pressures highlighted in the earnings call temper the overall score. To see Spark's full report on TSE:TIXT stock, click here. TELUS International (CDA) Inc. operates in the technology services industry, offering digital customer experience solutions and IT services. The company focuses on providing innovative solutions to enhance customer interactions and streamline business processes. Average Trading Volume: 260,422 Technical Sentiment Signal: Sell Current Market Cap: C$1.44B Find detailed analytics on TIXT stock on TipRanks' Stock Analysis page.
Yahoo
30-07-2025
- Business
- Yahoo
Fiserv Stock Gets Pummeled After Earnings
Fiserv, Inc. (FI) stock has declined by over 13% in the last week since its Q2 earnings were released. But was it really all that bad? After all, it generated strong earnings and free cash flow. FI stock looks cheap here. Short OTM puts for a lower buy-in. FI is at $142.50, down from $165.98 on July 22, just before its July 23 Q2 earnings release. This is well below its $237.79 peak on March 3. More News from Barchart Option Volatility And Earnings Report For July 28 – Aug 1 Should You Grab This 'Strong Buy' Semiconductor Stock Ahead of Earnings? 1 Options Trade You Can Use to Protect Historic Gains in Red-Hot Palantir Stock Get exclusive insights with the FREE Barchart Brief newsletter. Subscribe now for quick, incisive midday market analysis you won't find anywhere else. Based on its historical averages and free cash flow, FI stock could be worth at least 28% more at $182.00 per share. Moreover, one way to set a lower buy-in is to short out-of-the-money (OTM) put options. This article will delve into that. Good Earnings and Free Cash Flow (FCF) Fiserv, the payments and financial security solutions company, said its Q2 adjusted revenue was up 8% YoY, and adjusted earnings per share (EPS) rose 16%. This included an increase in its adjusted operating margin for the first half to almost 40% (39.6%). Moreover, its Q2 free cash flow (FCF) was up substantially to almost $1.2 billion, or 21.5% of sales. In the trailing 12 months (TTM) period, it has generated $5.157 billion in FCF according to Stock Analysis, although Fiserv says on page 3 and page 8 of its deck that it was $5.299 billion. That works out to a 24.4% FCF margin using the Stock Analysis figures and 25.1% using Fiserv's TTM number. We can use that to estimate its FCF in the next 12 months (NTM). Projecting FCF for Fiserv Management said its estimate is $5.5 billion in FCF for 2025. Let's look at that. Right now, analysts are projecting $20.78 billion in revenue for 2025. So, using a 25% FCF margin: $20.78 billion x 0.25 = $5.195 billion FCF However, next year, analysts foresee revenue of $22.46 billion. Using a 25% FCF margin, FCF could hit $5.615 billion. That means FCF could range between $5.2 and $5.6 billion over the next 12 months, using a 25% FCF margin. So, management's estimate of $5.5 billion for 2025 could imply its FCF margin will rise. However, if Fiserv hits $5.5 billion this year and $5.6 billion next year, it's likely the FI stock could rise. FCF-Based Target Price For FI Stock Fiserv does not pay a dividend. Let's assume it paid out 100% of its free cash flow. What would the dividend yield be? One way to estimate this is to use its historical FCF yield. For example, given its market cap today of $77.89 billion, according to Yahoo! Finance, and using its TTM FCF: $5.299 billion TTM FCF / $77.89 billion mkt cap = 0.0.68 = 6.8% FCF yield So, let's assume that the market would improve this yield slightly to 6.60% (i.e., its potential dividend yield assuming a 100% FCF payout). That would happen if its next 2025 FCF hits $5.5 billion, as management projects (due to its buybacks and improved outlook): $5.5 billion FCF est. for 2025 / 0.066 = $83.33 billion mkt cap That implies the market value of FI stock could rise by +7.0% over its $77.89 billion market cap. Moreover, next year, if the FCF hits $5.615 billion (see above) and the FCF yield (i.e., a potential dividend yield) improves to 6.50%: $5.615 FCF 2026 est. / 0.065 = $86.39 billion mtk cap, or +9.5% So, over the next 12 months (NTM) the price target is between +7.0% and +9.5%, or +8.25%. That puts the price target at $154.49: $142.72 x 1.0825 = $154.49 However, that is not the only way to forecast a price target for FI stock. Let's also look at its historical price/earnings multiples. P/E Based Price Target For example, Morningstar reports that the average forward price/earnings (P/E) multiple over the last 5 years has been 17.1x. Seeking Alpha's analysis says it's been 18.71x. Now, management at Fiserv has already projected that its 2025 earnings per share (EPS) will be between $10.15 EPS and $10.30, or a growth of +15% to $17% over 2024. So, using a midpoint EPS of $10.23 and a forward P/E of 17.9 (the average of the two surveys): $10.23 EPS x 17.91 = $183.12 target price That is +28.3% over today's price. Moreover, next year analysts are projecting EPS of $11.82 according to Seeking Alpha. So, that results in a projected price target of $211.58, or +48% upside from here. The bottom line is that FI stock looks very cheap using its historical P/E metrics. Analysts Agree FI Looks Undervalued Yahoo! Finance's survey of 34 analysts shows an average price target of $187.00, and Barchart's mean survey price is even higher at $206.38. That coincides with AnaChart's price target of $226.04 and Stock Analysis's average of $214.12 from 26 analysts. So, the average survey price target from analysts is $208.39, or +46% upside from today. Summary of Price Targets Using these three methods, you can see that FI stock looks deeply undervalued: FCF-Based Target ………. $154.49 P/E-Based Target ………… $183.12 Analysts' Targets …………. $208.39 Average Price Target ……. $182.00, or +27.7% over $142.50 today. But, for some reason, the stock is falling, and it might make sense to set a lower buy-in target. This can be done by selling short out-of-the-money (OTM) put options. That way, an investor can get paid while waiting to potentially acquire shares. Shorting OTM Puts For example, the $135 strike price put option for the Aug. 29 expiration period has a midpoint premium of $1.60 per put contract. This strike price is over 5% lower than today's price (i.e., is out-of-the-money) for the next 32 days. That provides an investor who does an order to 'Sell to Open' an immediate yield of 1.18% (i.e., $1.60/$135.00). That means that even if FI stock falls to $135 on or before Aug. 29, the investor's breakeven point is $135-$1.60, or $133.40. That's -5.39% below today's price and provides good downside protection. Note that the risk seems low that the stock will fall this much, as the delta ratio is only 20.66%. Moreover, the potential upside is attractive: $182.00 target / $133.40 breakeven = 1.364 = +36.4% upside And think about this. If the investor can repeat this play over the next 3 months, the expected return (ER) is 3.50%. That is even if FI stock stays flat or falls less than 5.39% to the breakeven point. The bottom line here is that Fiserv stock looks very cheap. One way to play this and to set a lower buy-in point is to short OTM puts in nearby expiry periods. On the date of publication, Mark R. Hake, CFA did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
