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3 Offer of shares with a high dividend yield of at least 8%; Analysts say ‘buy’
America heads to the polls on Tuesday (well, in fact America is voting early for a few weeks now), and while Democrat Joe Biden has a solid lead in the polls, there is evidence that President Trump could still win a second term. Finally, with all the early votes, the mass absenteeism ballots and the possible extended count deadlines, we might not know Tuesday night who is the winner. It’s a situation of uncertainty and the financial markets don’t like it. Which brings us to dividend-paying stocks. Investors want a buffer, something to protect their portfolio if the market goes down, and dividends deliver just that. These shareholder incentive payments provide a steady stream of income, which generally remains reliable even during a modest downturn. Wall Street analysts did some of the legwork for us, identifying dividend-paying stocks that have maintained high returns, at least 8% to be exact. As we open up the TipRanks database, we take a look at the details of those payouts to find out what makes these actions compelling.Altria Group, Inc. (MO) We’ll start with Altria Group, the tobacco company best known for its iconic Marlboro cigarettes . Altria, like many of the so-called “sin stocks,” is one of the champions of the dividend market, with a long history of reliable, high-yielding payments. Society has taken advantage of a psychological quirk of human nature in such a crazy year as 2020: People will curl up when necessary, but they won’t give up on their little pleasures. Cigarettes are exactly that, and even if overall smoking rates have been declining in recent years, Altria has recorded stable financial results in recent quarters. The first and second quarters both posted profits of $ 1.09, well above the 97 cents expected in the first quarter and a slight beating from the second quarter forecast of $ 1.06. Q2 revenue reached $ 5.06 billion, in line with the previous two quarters. Looking ahead, analysts expect Altria to post earnings of $ 1.15 per share over 5.5. billion dollars in revenue when the third quarter results are released. This report is due for release tomorrow morning. Achieving these results will help Altria maintain its dividend – although the company has long been committed, very publicly, to doing so. Altria has maintained its reliable dividend over the past 12 years, and for the last payment, made in September, the company even slightly increased the payment by 2.4%. The current dividend is 86 cents per common share, or $ 3.44 annualized, and gives an impressive 8.8% return. Looking at Altria ahead of the third quarter report, Deutsche Bank analyst Stephen Powers writes: “[We] have a positive bias on company fundamentals as we approach MO results next week – bolstered by healthy demand for intra-quarter scan channels in MO’s core tobacco businesses, with particular strength in cigarettes driven by the Marlboro brand … we believe that continued operational execution in its core business will allow MO to more credibly position itself as a stable core investment in the tobacco industry … ”Powers rates the action as a purchase, and its price target of $ 51 implies a 37% hike for the coming year. (To see Powers’ track record, click here) Overall, Altria has a moderate analyst consensus buy rating, based on 3 buys and 2 takes established in recent weeks. The current share price is $ 37.04, and the average price target of $ 46 suggests a 24% year-over-year increase. (See MO stock market analysis on TipRanks) American Finance Trust (AFIN) Next on our list is a Real Estate Investment Trust, a REIT. These companies are known for their high dividends, a fact resulting from a quirk of tax regulations. REITs are required to return a certain percentage of profits directly to shareholders, and dividends are one of the safest ways to comply. AFIN, which focuses its portfolio on single-tenant and multi-tenant service retail properties, is typical of its niche and its niche has been strong. AFIN is among its top ten tenants from large companies like Home Depot, Lowe’s and Dollar General, and announced earlier this month that it had collected more than 91% of its third-quarter rents. Looking ahead to Q3 results next week, EPS should stand at 23 cents, a 15% increase from Q2. The company offers a monthly dividend, at a rate of 7.1 cents per common share, instead of the more regular quarterly payments. The monthly format allows for flexibility in managing payment rate adjustments; in April, AFIN reduced the dividend from 9 cents to 7.1 as part of efforts to deal with the effects of the corona crisis on business. The current payout is annualizing to 85.2 cents per share and is a solid 14.7%. That’s more than 7 times the average dividend yield of S&P 500 companies. Riley analyst Bryan Maher notes the challenges AFIN has faced, as a property owner and manager for a long time. period of economic downturn, but he is confident in the company’s ability to meet the challenges. , which is not surprising given that its portfolio includes a large number of service retail assets. However, 71% of the portfolio is necessity-driven retail with the remainder being distribution and office buildings. As such, AFIN collected 84% of the cash rents due in 2Q20, including 96% of the cash rents owed by its top 20 tenants. Rental cash collection for July improved to 88%. AFIN has worked proactively with some tenants to negotiate deferrals / rent credits… ”noted Maher. To this end, Maher values the AFIN stock at a buy and gives it a target price of $ 10. At current trading levels, this implies a strong potential for a 76% year-on-year upside. (To view Maher’s track record, click here) AFIN is priced at $ 5.69, and her average goal matches Maher’s, at $ 10. The stock has an analyst consensus moderate buy, based on an even split between buy and hold critics. (See AFIN stock market analysis on TipRanks) Golub Capital BDC (GBDC) Last but not least is Golub Capital, a business development company and asset manager. Golub works with mid-market companies, providing financing and lending solutions. The company has a market capitalization of $ 2.2 billion, and capital under management of over $ 30 billion. In the months following the corona virus crisis, Golub has seen a price of depressed stock and high volatility of its earnings. The stock is down 28% since the start of the year. Profits, which slumped in 4Q19, rebounded in 2020. The first quarter showed 33 cents per share, while the second quarter figure was 28 cents. Looking ahead, forecasts expect a repeat of Q2 EPS of 28 cents. Income has been equally volatile; the first quarter was marked by a large net loss, but the second quarter saw sales rebound to $ 145 million. This is the highest quarterly turnover of the past year. Golub believes in maintaining the dividend for investors, by offering not only a reliable regular payment but also periodic special dividends. The company adjusted the payout earlier this year, both to keep it affordable during the coronavirus crisis and to prevent the yield from getting too high. The result was a 12% reduction, making the current payment 29 cents per common share quarterly. This still gives a high return of 9.16%, which compares well to the 2.5% average found among peers in the financial industry. Finian O’Shea, of Well Fargo, notes that Golub recently announced a show. of unsecured debt of $ 2 billion, a move that gives the company plenty of cash in a tough time. He writes: “GBDC does not pay a large premium for unsecured to begin with … We believe that the improved flexibility and longer duration of unsecured makes them an attractive addition to the right side of the balance sheet, and consider it a vote of confidence in GBDC’s underlying portfolio. »O’Shea reiterates its overweight rating (ie Buy) on this stock. Its price target, at $ 13.50, indicates a modest margin of improvement of 6%. (To see O’Shea’s track record, click here) Like AFIN above, Golub Capital has a moderate buy consensus rating, with 1 buy and hold notice each. The share’s average price target matches O’Shea’s target at $ 13.50. (See Golub’s Stock Analysis on TipRanks) For great ideas for trading dividend-paying stocks at attractive valuations, visit Top Stocks to Buy from TipRanks, a newly launched tool that brings together all the information about stocks from TipRanks. only those of featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
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