While many dividend stocks are viewed as slow-growing investments, this isn't always the case. Right now, investment bank analysts up and down Wall Street are bullish for a pair of dividend-paying stocks they think could deliver a return above 20% over the next 12 months.
Shares of Eli Lilly (LLY -1.70%) and ConocoPhillips (COP -3.41%) don't offer the highest yields at the moment, but that doesn't mean they can't outperform. Wall Street price targets suggest these stocks can rise 29% and 22%, respectively, in the year ahead. Here's a closer look to see if they might be a good fit for your income-generating portfolio.
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1. Eli Lilly
Shares of Eli Lilly fell by more than half from their previous peak but Wall Street analysts who follow the drugmaker expect a rebound. A consensus price target of $950.17 suggests the stock can climb more than 29% from a recent price of $735 per share.
Eli Lilly's stock price declined because of disappointing results from a clinical trial with its oral weight-management candidate, orforglipron. The highest dosage tested led to an average weight reduction of 12.4% after 72 weeks of treatment. To put the result in perspective, treatment with Zepbound, Lilly's injectable weight-management drug, reduced similar patients' weight by 20.9% after 72 weeks.
Several analysts following Eli Lilly correctly assumed orforglipron wasn't going to be a big winner long before the company read out results last month. Now that the stock has fallen in response to the data, a gain on the back of Zepbound and the rest of its product lineup is easier to forecast.
Total sales of tirzepatide, the active ingredient in Zepbound, an obesity treatment, and Mounjaro, a diabetes treatment, soared by 121% year over year to reach $14.7 billion in the first half of 2025.
Tirzepatide probably has a lot more room to grow. Wall Street analyst estimates regarding global sales of tirzepatide and other drugs that act on glucagon-like peptide-1 (GLP-1) receptors are off the charts. For example, BMO Capital Markets now estimates annual weight loss drug sales reaching $150 billion by 2033.
Eli Lilly isn't a one-hit wonder dependent entirely on weight loss treatments. Sales of Verzenio, a breast cancer drug it launched in 2017, rose 11% higher year over year to $2.7 billion in the first half of 2025.
At recent prices, Eli Lilly shares offer a minuscule 0.8% dividend yield, but an investment in this stock could still deliver heaps of passive income down the road. The drugmaker has more than doubled its dividend payout over the past five years.
2. ConocoPhillips
Shares of ConocoPhillips are down about 30% from the all-time high they set a few years ago. Analysts who follow the oil and gas giant expect a rebound. A consensus target of $120.95 currently implies a gain of about 28% from the stock's recent price of about $95 per share.
ConocoPhillips' stock is down, but its quarterly dividend payout of $0.78 per share is up sharply from 2023 levels and has held steady for over a year. At recent prices, it offers a 3.3% dividend yield.
Don't let the stagnant dividend payout confuse you. Returning cash to shareholders is a top priority at ConocoPhillips. The company spent $1.2 billion buying back shares in the second quarter, which was $200 million more than it spent on dividends. It's already reduced its outstanding share count by 3.5% since acquiring Marathon Oil last November.
ConocoPhillips has been returning cash to investors hand over fist despite oil prices that have hovered below $80 per barrel for over a year. The integration of Marathon Oil, upcoming asset sales, and upcoming tax benefits from the One, Big, Beautiful Bill Act will most likely allow it to distribute significantly more cash in the years ahead. Management expects annual free cash flow to rise by more than $7 billion over the next four years.
An unexpected global economic slump that pressures oil prices could put the brakes on ConocoPhillips' free cash flow expansion plans. With a well-funded dividend already offering a yield above 3%, though, this stock is probably worth the risk. Adding some shares to a diverse portfolio looks like a smart move for most investors right now.
