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3 large dividend shares yielding at least 8%; Analysts say ‘buy’
Do you like octopuses? According to Deutsche Bank, we are looking at some volatility in the roller coaster for the next few months, with likely short-term gains, followed by a decline in the second quarter and gains in the second half. The company expects the share value to fall in the next three months, perhaps by as much as 5 to 10%, for various reasons set out by the firm’s strategist Binky Chadha. “The more the impact of the stimulus takes place in the foreground, and the direct stimulus controls at about a quarter of the new package are clearly one-off, the sharper the growth peak is likely to be. The closer this peak in macro growth is to warmer weather (which gives small investors something else to do); and after an increased return to work at the office, the greater we expect the withdrawal to be, ‘Chadha remarked. This is the medium term. In the longer term, Chadha expects the markets to strengthen by the end of the year, setting a 4,100 target on the S&P 500. This is higher than its previous 3,950 target, indicating a potential gain of 4% from current levels. So, for investors, we are looking at a rocky summer and fall, with some declines and gains likely in the markets. In that environment, a defensive stock game makes sense; it provides a degree of stability to the portfolio, as well as a degree of insurance if the gains do not materialize. Reliable dividend stocks, with their regular payouts, provide an income stream that is independent of the depreciation of the stock price, as well as a stock profile that is less volatile at the outset, making it the ideal step for investors concerned about maintaining their returns while coping. high macro volatility. For this purpose, we used the TipRanks database to pull up three high-yield dividend stocks that have a profile: a Purchase Rating of the Street Analyst Corps; significant upward potential; and a reliable dividend yielding more than 8%. Let’s see what Wall Street’s benefits have to say about it. Monroe Capital (MRCC) We start with Monroe Capital, a private equity firm invested in the healthcare, media, retail and technology sectors. Monroe focuses on businesses in minorities and women, or on companies with share ownership plans. Monroe offers access to capital resources for business development in this sometimes understaffed demographic. Monroe has shown two conflicting trends so far this year: declining revenue and earnings, coupled with rising share value. The company’s top line, at $ 12.6 million, was 6% lower than in the third quarter and 25% year-on-year, while profits fell 40%, respectively, by 42 cents. On an annual basis, however, the EPS has more than doubled. If we look at the share price, Monroe’s share has risen by 60% over the past 12 months. On the dividend front, Monroe paid out 25 cents a share in December; the following is scheduled for the same amount for the end of this month. With an annual payment of $ 1, the dividend yields a strong 9.8%. This compares favorably with the average return of 2% found among peer companies. The dividend attracts attention by Oppenheimer analyst Chris Kotowski, who was rated 5 stars by TipRanks. ‘We are still seeing a run-up to eventual dividend coverage with full fees being exercised as management expands the portfolio to its target of 1.1-1.2x leverage (from 1.0x currently) and the funds currently in non-accruals tied up, repositioned once resolved … primary return for a BDC is its dividend payout over time, and we trust that MRCC’s new $ 1.00 payout (equivalent to a return of ~ 10%) is sustainable is, ”Kotowski remarked. Consistent with his comments, Kotowski rates MRCC as a better performer (ie buy), and its price target of $ 12 indicates that it has room to grow 25% in the coming year. (To view Kotowski’s record, click here. Analysts’ reviews of MRCC ranged from 2 to 1 in favor of Buy versus Holds, which makes the consensus rating a moderate buy. The stock has a trading price of $ 9.59, and their average target of $ 11.13 implies a 16% increase in the coming year. (See MRCC stock analysis on TipRanks) Eagle Point Credit Company (ECC) Let’s stick with the mid-market financial sector. another of the capital investment firms that wants to turn the mid-market debt into returns for investors.The company invests in CLO shares and focuses on generating current income – in other words to ensure its own investors’ returns.Although Eagle Point is a small player- player, the company boasts $ 3 billion in assets under management, showing that it is beating its weight, last month Eagle Point reported a 4Q20 revenue, with a 24 cents EPS, below expectations of 29 The current ve however, services only grew quarter-on-quarter and year-on-year, as both quarter 3Q20 and 4Q19 were 23 cents. As for the dividend, we find that Eagle Point is doing something slightly unusual. The company pays out a monthly dividend rather than quarterly. The current payment, at 8 cents per ordinary share, has been kept steady for more than a year now and the company has not missed a payout. At 96 cents per ordinary share annually, the dividend yield is 8.4%. It is robust by any standard. B. Riley’s 5-star analyst Randy Binner covers Eagle Point, and he notes that the company should have no problem maintaining its dividend coverage going forward. “The company’s reported quarterly recurring CLO cash flow has averaged $ 0.75 per share over the past twelve months. Similar levels of recurring cash flow will leave a big cushion to serve the $ 0.24 quarterly dividend in the future … The company announced $ 29.5 million in cash on the balance sheet as of February 9th. This cash balance and serviceable quarterly dividend of $ 0.24 contributes to a favorable liquidity position, ”Binner wrote. Binner’s comments support a buy rating on the stock, and its $ 14 price target implies a 12% uptrend of 23%. (To view Binner’s record, click here) Wall Street takes the same stance on ECC as it did on MRCC: a moderate buy-consensus rating based on a 2-1 split between Buy and Hold reviews. ECC shares have an average price target of $ 14, which is in line with Binner’s, and the shares are trading at $ 11.41. (See ECC stock analysis on TipRanks.) Hess Midstream Operations (HESM) Financial middle markets are not the only place to find strong dividends. Wall Street professionals also recommend the energy sector, and that’s where we’re headed right now. Hess Midstream is one of the many companies in the midstream sector of the energy industry that provides and supports the necessary infrastructure to collect, process, store and transport fossil fuel products from the drill heads in the distribution network. Hess has a range of midstream assets in the North Dakota Bakken Formation, moving crude oil and natural gas along with their derivatives. Hess reported results for 4Q20 earlier this year, with $ 266 million at the top and a profit of 36 cents per share. Revenue was 5% higher than on an annualized basis and relatively low from the third quarter. The EPS rose 20% quarter-on-quarter, but was sharply lower compared to the 87 cents reported in 4Q19. Of interest to investors, the company reported more than $ 126 million in free cash flow, which it used to finance the dividend. Hess pays out its dividend on a quarterly basis and has a reputation for not missing out on payments. The company has been regularly increasing its payment for the past four years, and the most recent dividend, at 45 cents per ordinary share, was paid out in February. This dividend is considered ‘safe’ because the company will generate between $ 610 million and $ 640 million in free cash flow next year. These funds will fully cover the dividend, with approximately $ 100 million left. Analyst Alonso Guerra-Garcia, written by Scotiabank, sees free cash flow as Hess’s priority going forward. “We expect that the focus this year will be on the harvest of free cash flow (FCF) with the repayment and further withdrawal. Improved FCF profiles this year could also better position the group for a 2H21 demand recovery. Continued changes to the energy policy and the energy transition may be windy this year, but we prefer to prefer exposure to the more diversified companies with FCF, to dividend (FCFAD) and the torque rather than a recovery, ‘the analyst believes. To this end, Guerra-Garcia HESM rates a better performance (ie buy), with a price target of $ 27 indicating a potential increase of 26% by the end of the year. (To see Guerra-Garcia’s record, click here. All in all, there are only 2 reviews of this small-cap venture, and it is evenly distributed – one Buy and one Hold – which gives Hess a moderate Buy rating. The stocks are trading at $ 21.41 and their average price target of $ 27 indicates an upward one-year of 26%. (See HESM stock analysis on TipRanks.) To find great ideas for dividend stocks at attractive valuations, visit TipRanks ‘s best shares to buy, a newly introduced tool that unites all of TipRanks’ shares on the shares Disclaimer: The opinions expressed in this article are solely those of the proposed analysts. The content is for informational purposes only. is very important to do your own analysis before investing.