Wall Street Thinks These 3 High-Yield Dividend Stocks Could Soar 26% to 34%

High yield, low expectations? That's often the case with stocks that pay especially juicy dividends. And sometimes, the higher the yield is, the lower the expectations are.

There are some glaring exceptions, though. Wall Street thinks three high-yield dividend stocks could soar from 26% to 34% higher over the next 12 months.

1. Devon Energy

Devon Energy's (DVN 0.19%) share price has declined in recent months, and so has its dividend. The two trends are the result of lower oil prices.

The oil company's dividend consists of two parts -- a fixed component and a variable component. The variable component is funded by excess free cash flow, which fluctuates with oil prices.

Still, Devon's dividend yield remains quite high at over 9%. Analysts also continue to be bullish about the stock, with their average price target reflecting an upside potential of around 26%.

2. AT&T

AT&T (T 1.02%) has been a longtime favorite for income investors. With its dividend yield topping 6.9%, the telecom giant still is a go-to pick for many investors seeking income.

To be sure, AT&T's dividend doesn't have the luster it once did. The company increased its dividend for 36 consecutive years through 2021. However, spin-offs of some of its businesses caused AT&T to break that impressive streak and ultimately reduce its dividend payout.

AT&T's dividend appears safe for now, though. Wall Street thinks better days could be ahead for its stock as well. The average analysts' 12-month price target is close to 29% above the current share price.

3. U.S. Bancorp

U.S. Bancorp (USB 0.32%) was one of several bank stocks rattled by the failures of three U.S. banks earlier in 2023. Its shares are still down more than 20% year to date.

This decline had at least one positive effect, though. U.S. Bancorp's dividend yield skyrocketed to its highest levels in over a decade. The yield currently tops 5.8%.

Many on Wall Street seem to think U.S. Bancorp's decline is only temporary. The consensus 12-month price target reflects an upside potential of 34%.

Is Wall Street right?

I wouldn't bet that any of these three stocks will really soar from 26% to 34% higher, as analysts project. However, my view is that Wall Street is generally right about the brighter prospects for all three.

As mentioned, Devon Energy's fortunes hinge on oil prices. Saudi Arabia's recently announced oil production cuts could boost those prices -- and push Devon's share price higher. On the other hand, it's possible that a recession could reduce demand, pulling the stock lower.

So far, the much-predicted recession has yet to materialize, but the production cuts are a reality. I think Devon has room to run over the next 12 months, even if it isn't as much as 26%.

AT&T definitely faces some big challenges. The company's debt remains high, although it's not nearly as worrisome as it once was. The wireless business remains highly competitive.

However, executives believe AT&T will be able to achieve its guidance of at least $16 billion in free cash flow this year. Assuming nothing derails meeting that outlook, I expect the stock to rise at least modestly this year.

What about U.S. Bancorp? It's usually not a good sign when Warren Buffett completely exits a stock. And that's exactly what happened in the first quarter of 2023.

But I think U.S. Bancorp should rebound strongly --- eventually. I'm not necessarily sure it will happen over the next few months, though. This stock could be a great pick for bargain hunters willing to be patient.