[ad_1]
TipRanks
3 large dividend stocks with a yield of at least 8%; Analysts say ‘buy’
We’ll talk about dividend stocks, but we’ll get there through tax policy. The connection is simple: Public spending is increasing, as evidenced by the $ 1.9 trillion COVID stimulus bill passed this month. Stimulating cash injections into the economy are likely to boost consumer spending, and there are fears that the Biden administration has no intention of paying for its increased spending. Several tax proposals were incorporated into the Democratic Party’s speech in last year’s election, and President Biden was elected at least on an implied promise to raise taxes for the wealthiest taxpayers. If Progressive Democrats push these proposals into law, it could potentially have an immediate, and possibly negative, impact on the stock markets. And that brings us to dividend stocks. These traditionally defensive investments provide investors with an immediate income stream through dividend payments regardless of the market move. The key factor is the dividend yield or rate of return. Wall Street analysts have done some of the legwork for us, identifying dividend paying stocks that have maintained high returns, at least 8% to be exact. Opening up the TipRanks database, we take a look at the details of three of these stocks to find out what makes them compelling buys. Arbor Realty Trust (ABR) The first dividend-paying stock we’ll be looking at is Arbor Realty Trust, a direct lender in the apartment complex segment. Arbor finances small loans for Fannie Mae and Freddie Mac; in the fourth quarter of last year, ending December 31, the company made more than $ 2.7 billion in loans. Arbor’s business is growing, which is visible in both the company’s quarterly results and in the value of the shares. ABR reported year-over-year revenue increases in every quarter of 2020 – even in the first quarter, in which EPS turned negative due to the corona crisis. In the most recent quarter, 4Q20, the company posted total revenue of $ 125.6 million, up 54% from the quarter last year. EPS stood at 80 cents per share, compared to 72 cents in Q3 and 34 cents in 4Q19. When it comes to share value, ABR has risen 211% over the past 12 months, far outstripping the broader markets. The company also offers investors a large dividend. Arbor has a 2-year history of keeping the payout reliable, and the current payout, sent earlier this month for 33 cents per common share, marked the seventh dividend increase in the past 9 quarters. At $ 1.32 annualized, the dividend returns 8.57%, well above the 1.78% average seen among comparable companies. 5-star analyst Stephen DeLaney, of JMP, is impressed with Arbor’s overall position, especially when it comes to the company’s ability to produce strong agency volumes. “Agency start-ups in the fourth quarter were $ 2.75 billion, an impressive 88% increase from $ 1.47 billion in the third quarter. First half of 2021. The services portfolio of agency now stands at $ 24.6 billion and generates ~ $ 110 million in annual recurring revenue, which is largely prepaid, “DeLaney wrote. DeLaney points out that the credit quality of agencies remains strong, noting: “Forborne loans remain manageable with just 0.5% in Arbor’s $ 18.3 billion Fannie portfolio, while forborne loans in $ 4.9 billion Freddie Mac portfolio of the company totaled 5.2%. ”To that end, DeLaney credits ABR with outperforming (meaning a buy), and its price target of $ 18 implies a 16% increase for the year. to come. (To view DeLaney’s background, click Overall, there are 4 recent reviews on the record for Arbor Realty, and they’re all buys – making the analyst consensus view here a strong buy. The average price target currently sits at $ 16.75, indicating an 8% growth margin from current levels. (See ABR stock market analysis on TipRanks) Mobile Telesystems (MBT) Next, we’ll change lanes and take a look at Russia’s largest mobile network operator. Mobile and wireless networks are big business and Mobile Telesystems (MTS) operates in Russia, Belarus and Armenia. The company offers a range of services, including cellular networks; local telephone service; and broadband. MTS does not put its eggs in one basket. The company last week announced a $ 10 million stake in the AI chip developing Kneron, an investment it hopes will pay off thanks to the rights to distribute chips in Russia and the development of a Exclusive line of AI-enabled smart devices. In its recent Q4 / year 2020 report, MTS posted positive growth across a number of key metrics. The company’s total group revenue for 2020 grew 5.2 percent year-on-year, to 494.9 billion rubles (US $ 6.5 billion). This was partly explained by a 6.4% increase in mobile revenues in Russia in the fourth quarter. MTS posted a sequential quarterly gain of 230,000 active mobile subscribers in the fourth quarter. Pay-TV subscriptions grew 44% in 2020 and broadband subscriptions grew more than 10% year-over-year in the fourth quarter. MTS has an active dividend policy, paying out regularly twice a year and adjusting the payout to keep it in line with earnings. The most recent dividend came out in October of last year, at 19 cents per common share. This gives a return of 9.79%, a very favorable comparison with the average return of the technology sector, less than 1%. It should also be noted for profit-conscious investors, the company’s board of directors has approved a 15 billion ruble share buyback in 2021. This amounts to $ 198 million in US currency. JP Morgan analyst Alexei Gogolev takes a bullish stance on mobile telesystems, noting: “We are encouraged by the good start of 2021 for MTS with continued growth in mobile services as well as a commitment to higher shareholder compensation than expected despite high capex. We highlight strong fundamentals in the history of MTS, supported by the healthy Russian wireless market and no signs of a gradual deterioration in competitive positioning. We value MTS’s total shareholder return (which is driven by both dividends and share buybacks) and see the name as the best way to play in the Russian telecommunications space. To that end, Gogolev places an overweight (ie buy) rating on MBT shares, and his price target of $ 11 suggests a potential upside of 33% year on year. (To view Gogolev’s track record, click here) So far, MBT has slipped under the radar of the body of Wall Street analysts; the dearth of recent reviews leaves the title with a moderate buy consensus rating. The shares are selling for $ 8.25, with an average price target of $ 11.10, matching Gogolev’s. (See MBT Market Analysis on TipRanks) Two Harbors Investment (TWO) We will end our high yield dividend list with Two Harbors Investment, a real estate investment trust (REIT) with a portfolio focused on residential mortgage backed securities (RMBS)) mortgage management rights (MSR). The company states that “other financial assets” represent between 5% and 10% of the portfolio. Looking at recent performance, Two Harbors shows mixed results from the end of 2020. In the fourth quarter, the company reported comprehensive income of $ 113.5 million, compared to $ 219 million at the end of 2020. previous quarter. Basic earnings, however, increased quarter over quarter, from $ 75.5 billion to $ 82 million. Book value was also $ 7.63, up 3.5% from the prior quarter. Like most REITs, Two Harbors pays a reliable dividend. The company cut the payment in early 2020, at the height of the COVID pandemic crisis, but has increased it twice since. The current payment is 17 cents per common share, declared March 18 for payment April 29. At that rate, which annualizes to 68 cents, the dividend is yielding a solid 9.3%. Covering two ports for JMP Securities, analyst Trevor Cranston expects “an attractive dividend to persist” and believes that “the company should trade at a higher premium due to generally lower spread risk and ‘low sensitivity to interest rates “. However, Cranston points out that investing in two stocks is not without risk. “We see the greatest risk to stocks at these levels is the ongoing lawsuit with the former outside director of the company. Although the company has not established any contingent liabilities and we do not have a As a reasonable basis for estimating one, we recognize the risk that legal action may result in a charge in the future that would reduce the carrying value of the company and, therefore, also impact the share price. While we believe that a premium valuation for TWO is warranted given the fundamentals, we believe that investors should also remain aware of this situation when investing in shares of the company, ”Cranston said. these comments, the analyst rates TWO an outperformance (i.e. a buy), as well as a price target of $ 8 to imply a 10% hike. (To see Cranston’s track record, click here ) In the whole The, Two Harbors has 5 recent reviews, and they break down to 3 buy and 2 take, for a moderate buy analyst consensus rating. The shares are selling for $ 7.25 and their average target of $ 7.75 suggests a slight rise of 7%. (See TWO Stock Analysis on TipRanks) To find great ideas for dividend-paying stocks that trade at attractive valuations, visit Top Stocks to Buy from TipRanks, a newly launched tool that brings all information about stocks together. by TipRanks. Disclaimer: The opinions expressed in this article are solely those of the 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.
[ad_2]
Source link