As 2025 kicks off with a volatile start, many investors are likely feeling the pressure of heightened uncertainty. The S&P 500 and other major indices are down year-to-date, led by sharp declines in tech heavyweights like NVIDIA, which has fallen 13% from its 52-week high set just days ago. Market sentiment has been further dampened by a hot December jobs report, reigniting fears of prolonged higher interest rates.

For cautious investors looking to safeguard their portfolios, high-yielding dividend stocks trading near fair value could offer income and stability in these turbulent times.

Let’s take a closer look at three contenders, each presenting attractive valuations based on their P/E, technical positioning, and strong yields.

Devon Energy Breaks Its Long-Term Downtrend

The energy sector has started 2025 on a strong note, with the popular Energy Select Sector SPDR Fund ETF (NYSEARCA: XLE) up 5.36% year-to-date, making it the top-performing sector YTD. Devon Energy (NYSE: DVN) has been a standout within this space, surging over 12% this year.

As one of the U.S.'s largest independent oil and gas producers, Devon operates in highly productive regions like the Delaware Basin.

Devon’s dividend yield is especially attractive, combining a fixed and variable component tied to free cash flow. While its forward yield stands at 4.13%, it could rise significantly if oil prices continue to climb. After spending much of 2024 in decline, Devon recently broke out of a long-term downtrend, clearing a critical resistance level.

This technical shift suggests further upside if the stock establishes a base above its breakout zone. 

Analysts are bullish, with a Moderate Buy rating and a price target of $49.43, offering additional upside potential.

CVS Health Stands Out as Early Outperformer in 2025

CVS Health Corp. (NYSE: CVS), a dominant player in the U.S. healthcare industry, is best known for its CVS Pharmacy locations, CVS Caremark, and Aetna health plans. The company faced significant challenges in 2024, including lower demand for COVID-related products and rising costs tied to its booming Medicare Advantage (MA) plans.

These headwinds caused the stock to underperform, but the narrative is beginning to shift. A recent government proposal to increase MA payments in 2026 has renewed optimism, helping shares climb nearly 15% year-to-date as of Monday's close, defying the broader market’s slump.

On the technical side, CVS has broken out of a consolidation base near $45 and is now approaching its 50-day simple moving average, signaling strengthening momentum. CVS offers an impressive 5.16% dividend yield for income-focused investors, paired with an attractive P/E ratio of 13.08.

Analysts are optimistic, maintaining a Moderate Buy rating and projecting a nearly 33% upside to the consensus price target. As a defensive healthcare leader with improving prospects, CVS could be a compelling choice for yield and value investors.

Ford Motor Co. Enters Potential Deep Value Territory

Ford Motor Co. (NYSE: F), an icon in the automotive sector, has recently faced its share of challenges. Over the past year, the stock has fallen nearly 16%, weighed down by rising recall and warranty costs and continued losses in its electric vehicle (EV) segment.

However, management has signaled a turning point, projecting better EV margins by 2025 through cost improvements.

Valuation metrics highlight Ford’s appeal to bargain hunters, with a P/E of 11.07 and a forward P/E of just 5.74. For income seekers, Ford’s 6.18% dividend yield is particularly enticing. Technically, the stock has established a support zone near $9.50, which could act as a double-bottom if the stock takes out near-term resistance near $10.

Analysts are lukewarm on Ford, though, assigning a Reduce rating, but the consensus price target of $11.83 still implies an impressive upside from current levels. Ford might be worth considering for investors seeking a high-yielding stock with potential value as it navigates its cost-cutting turnaround strategy.