3 large dividend shares yielding more than 7%; Raymond James says ‘buy’
Wall Street’s investment firms are burning midnight oil as we approach the end of 2020, publishing their year-end notes and their forecasts for the new year, both for investor building. There’s the obvious point: we are in a moment of rising markets, and investor sentiment is rising high now that the election is over and COVID vaccines are getting emergency approval and starting in the distribution networks. to combat the virus this winter is slowing economic recovery. Whether the economy will actually decline or not remains to be seen. Meanwhile, Raymond James strategist Tavis McCourt has published his views on the current situation, and is considering his comments. First, McCourt notes that investors are focused on the good news: ‘[The] stock market is more focused on vaccine deployment and full reopening of economies in 2021, and so far negative data points have been largely set aside. Looking ahead, McCourt writes over the next two years: ‘We believe the logical outcome of 2021 (and 2022 in this respect) is a likely “return to normalcy” with strong EPS growth offset by lower P / Es, ” which hinders a change in the vaccine story. We expect cyclical sectors and smaller investment stocks to continue to perform better, as is typical in the early cycle markets … ‘Raymond James’ research analysts examined the ‘right’ purchases in the markets, taking a closer look at their choices. The tipRanks database sheds extra light on three of JMP’s choices – stocks with a dividend of 7% or better – and what the investment firm sees with 10% upside or better. New Residential Investment (NRZ) The Fixed Investment Segment (REIT) has long been known for its high and reliable dividends, a feature promoted by tax regulations, which stipulates that these companies must return a certain portion of the profits directly to investors. New Residential Investment is located in New York and is typical of its sector. The company’s portfolio includes residential mortgages, service rights on mortgage loans and the emergence of loans. NRZ focuses its operations on the residential housing sector. NRZ is a $ 4.13 billion middle capital firm with a market capitalization of $ 5.72 billion. The company’s revenue has been rising since the second quarter of 2020, following strong losses during the ‘coronary recession’ of the first quarter. However, earnings in the third quarter were 19 cents per share, up from 54 cents in the previous year. But even with the loss, NRZ took care of maintaining the dividend, and it did more than that. The company raised the Q3 dividend to 15 cents per ordinary share, in continuation of an interesting story. Back in the first quarter, the company lowered the usual share dividend to 5 cents, in an effort to conserve capital during the corona crisis. The company has since increased the dividend by 5 cents in each subsequent quarter, and the Q4 payment, announced in mid-December, amounts to 20 cents per ordinary share. At this rate, the dividend is increased to 80 cents annually and the yield exceeds 7.87%. In addition to raising the dividend, NRZ also announced a $ 100 million repurchase program. The repurchase is on preference shares and complies with the existing repurchase policy of ordinary shares. Analyst Stephen Laws, in his coverage of Raymond James of NRZ, writes: ‘We expect strong origin volumes and an attractive profit on sales margins to be strong to drive close. results, and we continue to expect a dividend increase in 4Q […] For 4Q20, we increase our core earnings estimate by $ 0.02 per share to $ 0.35 per share. For 2021, we increase the calculation of our core earnings by $ 0.08 per share to $ 1.31 per share. “In line with these comments, Laws rates the stock a better performance (ie buy). Its target price of $ 11.50 implies an upward one of 16 years of 16% (To view Laws’ record, click here) It is not often that analysts all agree on a stock.Take it if it does.NRZ’s consensus rating of Strong Buy is based on unanimous 8 buy.The stock is $ 11.36 average price target indicates a 14% and a change in the current share price of $ 9.93. (See NRZ share analysis on TipRanks) Fidus Investment Corporation (FDUS) Next is a business development corporation, Fidus Investment, which is one of the many in the mid-market industry finance niche , which provides debt solutions and capital access to smaller businesses that may not be able to secure loans from the larger markets, Fidus’ portfolio focuses on senior secured debt and mezzanine debt for companies worth between $ 10 million and $ 150 million ardeer is. Fidus has inv properties in 68 companies with a total value of $ 697 million. The largest part of the portfolio, 59%, is second lien, and the rest is mainly divided between subordinated debt, first lien debt and equity-related securities. The company saw revenue increase through the second and third quarters of 2020. , after negative results in Q1. The third quarter’s top line is ~ 21 million, an impressive increase of 129%. Since the third quarter, Fidus has declared its dividend for the fourth quarter at 30 cents per ordinary share, the same as the previous two quarters, plus an additional 4-cent special dividend approved by the Board. This brings the total payment for the quarter to 34 cents per ordinary share and sets the return at 9.5%. Robert Dodd, analyst at Raymond James, likes what he sees in Scam, especially the dividend outlook. ‘We still see that the risk / reward at the current level is attractive – with shares trading below the book trade, a solid predicted base dividend coverage from the NII … We project that FDUS its quarterly base dividend of $ 0.30 per share during to earn our forecast period thoroughly. As a result, we are projecting modest additions … ”Dodd gives a better performance (ie buy) on the stock and sets a target price of $ 14. At current levels, the target indicates a 10.5% increase in the next months to. (To see Dodd’s record, click here.) Wall Street is somewhat more divided over FDUS shares, a circumstance reflected in the consensus rating of the moderate buy analyst. The rating is based on 4 reviews, including 2 buy and 2 holders. Shares are priced at $ 12.66, and the average price target of $ 13.33 indicates a modest upward 5% from current levels. (See FDUS stock analysis on TipRanks) TPG RE Finance Trust (TRTX) Back to the REIT sector we look at TPG RE Finance Trust, the real estate finance arm of the global asset firm TPG. This REIT, with a market capitalization of $ 820 million, has built up a portfolio of commercial mortgage loans totaling $ 5.5 billion. The company is a provider of original commercial mortgage loans starting at $ 50 million, primarily in US primary markets. Most of the company’s loans and properties are centered in the East. Like many finance companies, TPG RE Finance saw serious losses in the first quarter due to the corona pandemic crisis – but has since recovered to a large extent. Revenue in the third quarter was $ 48 million, up 9% year-over-year. During the quarter, TPG received loan repayments totaling $ 199.6 million, which was a good result, and by the end of the quarter, the company had $ 225.6 million in cash or cash equivalents on hand. The company could easily fund its dividend of 20 cents per ordinary share. , in Q3. For the fourth quarter, the company recently declared not only the normal 20 cent penny, but also a special 18 cent cash dividend. Collectively, the dividend yielded 7.5%, almost 4x higher than the average found among S&P-listed companies. If we go back to Raymond James’ REIT expert Stephen Laws, we find that he is also strong on TRTX. “TRTX has underperformed since reporting its 3Q results, which we believe will create an attractive buying opportunity … We expect core earnings to continue to benefit from LIBOR floors in loans and expect new investments in the first quarter of 21 resume. The company’s portfolio has a combined exposure to retail and hotel of 14%, which is lower than the sector average of 19% … ”Laws rated TRTX a strong buy, and its price target of $ 13 indicates an increase of 22% in 2021. (Click here to see Laws’ record. This stock also achieves a strong buy rating from the analyst’s consensus, based on three unanimous buy reviews compiled over the past few weeks. Shares are priced at $ Priced at 10.67 and the average target of $ 11.00 indicates a modest upward 3% from current levels (See TRTX stock analysis on TipRanks) To find great ideas for dividend stocks trading at attractive valuations, visit TipRanks ‘best stocks for sale, a newly launched tool that combines all the insights of TipRanks’ stocks, only those of the analysts listed here. The content is for informational purposes only. It’s very important to do your own analysis before investing.