People who invest money can also aim for growth. It might be tricky to find stocks that both pay good dividends and have a strong chance of their price going up. But there are stocks like that out there. Wall Street experts think three high-dividend stocks could increase in value by 22% to 49% in the next year.
1. Pfizer
Pfizer's stock has been going down for about two and a half years. This is mainly because fewer people are buying its COVID-19 vaccine and Paxlovid drug. Also, Pfizer is about to lose the exclusive rights to sell some of its products.
But surprisingly, many experts still think Pfizer's stock will do well. On average, they predict it will go up by about 22% in the next year. Not everyone agrees, though. One analyst suggested selling the stock in April. But most analysts say it's a good buy.
I can't say for sure if Pfizer will reach its price target in a year. But I do agree that the company has good long-term prospects. It's launching new products that should bring in more money, making up for the loss of sales from products losing exclusivity. Also, Pfizer is making smart deals to get promising new products, which should pay off.
Despite these positives, Pfizer's stock is cheaper than you might expect. Its price compared to its expected earnings is lower than the average for healthcare companies in the S&P 500.
People who like getting regular income from their investments should be happy with Pfizer. It pays a dividend of almost 6.6%, and I think it will keep raising the dividend in the coming years.
2. Brookfield Infrastructure
Some investors have lost faith in Brookfield Infrastructure (NYSE: BIP) (NYSE: BIPC) lately. Both its limited partnership units (BIP) and corporate shares (BIPC) have dropped a lot in the past year.
But analysts are still optimistic about it. Most of them say it's a good buy, and they predict its price will go up by about 39% in the next year.
Will it actually go up that much? It's hard to say. But overall, I think Wall Street's positive outlook is justified.
Brookfield Infrastructure owns various types of infrastructure, like utilities, railroads, toll roads, and more. They buy top-quality assets, improve them, and then sell older ones to invest in new opportunities. This strategy should help them increase their funds from operations (FFO) by at least 10% every year.
I also like that they're committed to raising their distribution payments by 5% to 9% each year. This is especially good news considering that their distribution yields are over 5.9% for the limited partnership units and over 5.1% for the corporate shares.
3. Brookfield Renewable
Here's another promising option for both income and growth investors: Brookfield Renewable (NYSE: BEP) (NYSE: BEPC), a sibling company to Brookfield Infrastructure, with both under the parent company Brookfield Asset Management.
Similar to Brookfield Infrastructure, Brookfield Renewable also has two tickers for its LP (BEP) and its corporate entity (BEPC). Analysts are especially bullish about BEPC, predicting a potential upside of 49% over the next 12 months.
While I can't be certain if Brookfield Renewable will reach this target, I share the analysts' optimism about its long-term outlook.
Brookfield Renewable owns various renewable energy assets worldwide, including hydroelectric, wind, solar, and distributed energy facilities. The company plans to invest over $7 billion in new renewable energy projects in the next five years. It stands to benefit from trends such as aggressive carbon emissions reduction goals and increasing electricity demand.
This company has a track record of increasing its distribution by an average of 6% annually over the past two decades. It aims to continue growing its distribution by 5% to 9% each year. With a current yield of over 6%, Brookfield Renewable appears to be an attractive choice for investors seeking both income and growth.