3 High-Yield Dividend Stocks Offering at Least 8%; Analysts Say ‘Buy’, , on October 29, 2020 at 6:15 pm

Financial News
By High West Capital Partners
On October 29, 2020
In Financial News
Tags:

America goes to the polls on Tuesday (well, actually, America has been early voting for a few weeks, now), and while Democrat Joe Biden has a solid lead in the polls, there is some of evidence that President Trump may still win a second term. Finally, with all of the early voting, mass absentee ballots, and possible extended counting deadlines, we might not know on Tuesday night who the winner is.It’s a situation made of uncertainty, and financial markets don’t like that. Which brings us to dividend stocks. Investors want a pad, something to protect their portfolio in case of a market drop, and dividends offer just that. These profit-sharing payments to stockholders provide a steady income stream, that typically stays reliable even in a modest downturn. Wall Street’s analysts have been doing some of the footwork for us, pinpointing dividend-paying stocks that have kept up high yields, at least 8% to be exact. Opening up the TipRanks database, we examine the details behind those payments to find out what else makes these stocks compelling buys.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 market’s dividend champions, with a long history of reliable, high-yielding payments. The company has benefited from a psychological quirk of human nature during such a wild year as 2020: People will hunker down if necessary, but they won’t give up their small pleasures.Cigarettes are exactly that, and even though overall smoking rates have been declining in recent years, Altria saw stable financial results in the last few quarters. The first and second quarters both showed $1.09 in earnings, well above the 97 cents expected in Q1 and modest beat against Q2’s $1.06 forecast. Revenues hit $5.06 billion in Q2, in-line with the two previous quarters.Looking ahead, analysts expect Altria to post $1.15 per share in earnings on $5.5 billion in revenues when it reports Q3 results. That report is due out tomorrow morning. Meeting those results will help Altria maintain its dividend – although the company has a long-standing, very public, commitment to do just that. Altria has kept its dividend reliable for the past 12 years, and for the last payment, made it September, the company even slightly raised the payout by 2.4%. The current dividend is 86 cents per common share, or $3.44 annualized, and yields an impressive 8.8%.Looking at Altria in the lead-up to the Q3 report, Deutsche Bank analyst Stephen Powers writes, “[We] are positively biased on company fundamentals as we approach MO’s results next week—reinforced by healthy scanned channel demand intraquarter across MO’s core tobacco businesses, with particular strength in cigarettes driven by the Marlboro brand… we believe continued operational execution in its core business will enable MO to more credibly position itself as a stable core tobacco investment…”Powers rates the stock as a Buy, and his $51 price target implies a 37% upside for the coming year. (To watch Powers’ track record, click here)Overall, Altria has a Moderate Buy rating from the analyst consensus, based on 3 Buys and 2 Holds set in recent weeks. The stock’s current share price is $37.04, and the average price target of $46 suggests a 24% one-year upside. (See MO stock 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 regulation. REITs are required to return a certain percentage of profits directly to shareholders, and dividends are one of the surest means of compliance. AFIN, which focuses its portfolio on single- and multi-tenant service-retail properties, is typical for its niche.And its niche has been solid. AFIN boasts major companies like Home Depot, Lowe’s, and Dollar General among its top ten tenants, and announced earlier this month that it has collected over 91% of its third quarter rents. Looking ahead to Q3 results next week, EPS is expected 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 common quarterly payments. The monthly format allows some flexibility in managing adjustments to the payout rate; in April, AFIN reduced the dividend from 9 cents to 7.1 as part of efforts to manage the corona crisis effects on business. The current payment annualizes to 85.2 cents per share, and yields a robust 14.7%. This is more than 7x higher than the average dividend yield found among S&P 500 companies.B. Riley analyst Bryan Maher notes the difficulties that AFIN has faced, as a property owner and manager during an economic downturn, but is confident in the company’s ability to meet the challenges.“Like most REIT’s, AFIN has been impacted by the COVID-19 pandemic, which is not surprising given its portfolio has a large number of service retail assets. However, 71% of the portfolio is necessity-focused retail, with the balance being distribution and office properties. As such, AFIN collected 84% of cash rents due in 2Q20, including 96% of the cash rent due from its top 20 tenants. Cash rent collection for July improved to 88%. AFIN has been proactive in working with certain tenants to negotiate rent deferrals/credits…” Maher noted. To this end, Maher rates AFIN stock a Buy, and gives it a $10 price target. At current trading levels, this implies a strong one-year upside potential of 76%. (To watch Maher’s track record, click here)AFIN is priced at $5.69, and its average target matches Maher’s, at $10. The stock has a Moderate Buy from the analyst consensus, based on an even split between Buy and Hold reviews. (See AFIN stock analysis on TipRanks)Golub Capital BDC (GBDC)Last but not least is Golub Capital, a business development company and asset manager. Golub works with middle market companies, providing solutions for financing and lending. The company boasts a market cap of $2.2 billion, as well as over $30 billion in capital under management.In the months since the corona virus crisis hit the economy, Golub has seen a depressed share price and high volatility in its earnings. The stock is down 28% year-to-date. Earnings, which collapsed in 4Q19, have been bouncing in 2020. The first quarter showed 33 cent per share, while the Q2 figure came in at 28 cents. Looking ahead, the forecast expects a repeat of the second quarter EPS figure, 28 cents. Revenues have been just as volatile; the first quarter saw a deep net loss, but Q2 saw the top line bounce back to $145 million. This was the highest quarterly revenue figure in the past year.Golub believes in keeping up the dividend for investors, offering not only a reliable regular payment but also periodic special dividends. The company adjusted the payment earlier this year, both to keep it affordable during the coronavirus crisis and to keep the yield from getting too high. The result was a 12% cut, making the current payment 29 cents per common share quarterly. This still gives a high yield of 9.16%, which compares well to the 2.5% average found among finance sector peers.Finian O’Shea, from Well Fargo, notes that Golub has recently announced a $2 billion unsecured debt issue, a move that gives the company plenty of liquidity in a difficult time. He writes, “GBDC isn’t paying a hefty premium for unsecureds to begin with… We think the improved flexibility and longer tenor of unsecureds make them an attractive addition to the right side of the balance sheet, and see it as a vote of confidence in GBDC’s underlying portfolio.”O’Shea reiterates his Overweight (i.e. Buy) rating on this stock. His price target, at $13.50, indicates room for a modest 6% upside. (To watch O’Shea’s track record, click here)Like AFIN above, Golub Capital has a Moderate Buy consensus rating, with 1 each Buy and Hold reviews. The stock’s average price target matches O’Shea’s, at $13.50. (See Golub’s stock analysis at TipRanks)To find good ideas for dividend stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.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.,

3 High-Yield Dividend Stocks Offering at Least 8%; Analysts Say ‘Buy’America goes to the polls on Tuesday (well, actually, America has been early voting for a few weeks, now), and while Democrat Joe Biden has a solid lead in the polls, there is some of evidence that President Trump may still win a second term. Finally, with all of the early voting, mass absentee ballots, and possible extended counting deadlines, we might not know on Tuesday night who the winner is.It’s a situation made of uncertainty, and financial markets don’t like that. Which brings us to dividend stocks. Investors want a pad, something to protect their portfolio in case of a market drop, and dividends offer just that. These profit-sharing payments to stockholders provide a steady income stream, that typically stays reliable even in a modest downturn. Wall Street’s analysts have been doing some of the footwork for us, pinpointing dividend-paying stocks that have kept up high yields, at least 8% to be exact. Opening up the TipRanks database, we examine the details behind those payments to find out what else makes these stocks compelling buys.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 market’s dividend champions, with a long history of reliable, high-yielding payments. The company has benefited from a psychological quirk of human nature during such a wild year as 2020: People will hunker down if necessary, but they won’t give up their small pleasures.Cigarettes are exactly that, and even though overall smoking rates have been declining in recent years, Altria saw stable financial results in the last few quarters. The first and second quarters both showed $1.09 in earnings, well above the 97 cents expected in Q1 and modest beat against Q2’s $1.06 forecast. Revenues hit $5.06 billion in Q2, in-line with the two previous quarters.Looking ahead, analysts expect Altria to post $1.15 per share in earnings on $5.5 billion in revenues when it reports Q3 results. That report is due out tomorrow morning. Meeting those results will help Altria maintain its dividend – although the company has a long-standing, very public, commitment to do just that. Altria has kept its dividend reliable for the past 12 years, and for the last payment, made it September, the company even slightly raised the payout by 2.4%. The current dividend is 86 cents per common share, or $3.44 annualized, and yields an impressive 8.8%.Looking at Altria in the lead-up to the Q3 report, Deutsche Bank analyst Stephen Powers writes, “[We] are positively biased on company fundamentals as we approach MO’s results next week—reinforced by healthy scanned channel demand intraquarter across MO’s core tobacco businesses, with particular strength in cigarettes driven by the Marlboro brand… we believe continued operational execution in its core business will enable MO to more credibly position itself as a stable core tobacco investment…”Powers rates the stock as a Buy, and his $51 price target implies a 37% upside for the coming year. (To watch Powers’ track record, click here)Overall, Altria has a Moderate Buy rating from the analyst consensus, based on 3 Buys and 2 Holds set in recent weeks. The stock’s current share price is $37.04, and the average price target of $46 suggests a 24% one-year upside. (See MO stock 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 regulation. REITs are required to return a certain percentage of profits directly to shareholders, and dividends are one of the surest means of compliance. AFIN, which focuses its portfolio on single- and multi-tenant service-retail properties, is typical for its niche.And its niche has been solid. AFIN boasts major companies like Home Depot, Lowe’s, and Dollar General among its top ten tenants, and announced earlier this month that it has collected over 91% of its third quarter rents. Looking ahead to Q3 results next week, EPS is expected 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 common quarterly payments. The monthly format allows some flexibility in managing adjustments to the payout rate; in April, AFIN reduced the dividend from 9 cents to 7.1 as part of efforts to manage the corona crisis effects on business. The current payment annualizes to 85.2 cents per share, and yields a robust 14.7%. This is more than 7x higher than the average dividend yield found among S&P 500 companies.B. Riley analyst Bryan Maher notes the difficulties that AFIN has faced, as a property owner and manager during an economic downturn, but is confident in the company’s ability to meet the challenges.“Like most REIT’s, AFIN has been impacted by the COVID-19 pandemic, which is not surprising given its portfolio has a large number of service retail assets. However, 71% of the portfolio is necessity-focused retail, with the balance being distribution and office properties. As such, AFIN collected 84% of cash rents due in 2Q20, including 96% of the cash rent due from its top 20 tenants. Cash rent collection for July improved to 88%. AFIN has been proactive in working with certain tenants to negotiate rent deferrals/credits…” Maher noted. To this end, Maher rates AFIN stock a Buy, and gives it a $10 price target. At current trading levels, this implies a strong one-year upside potential of 76%. (To watch Maher’s track record, click here)AFIN is priced at $5.69, and its average target matches Maher’s, at $10. The stock has a Moderate Buy from the analyst consensus, based on an even split between Buy and Hold reviews. (See AFIN stock analysis on TipRanks)Golub Capital BDC (GBDC)Last but not least is Golub Capital, a business development company and asset manager. Golub works with middle market companies, providing solutions for financing and lending. The company boasts a market cap of $2.2 billion, as well as over $30 billion in capital under management.In the months since the corona virus crisis hit the economy, Golub has seen a depressed share price and high volatility in its earnings. The stock is down 28% year-to-date. Earnings, which collapsed in 4Q19, have been bouncing in 2020. The first quarter showed 33 cent per share, while the Q2 figure came in at 28 cents. Looking ahead, the forecast expects a repeat of the second quarter EPS figure, 28 cents. Revenues have been just as volatile; the first quarter saw a deep net loss, but Q2 saw the top line bounce back to $145 million. This was the highest quarterly revenue figure in the past year.Golub believes in keeping up the dividend for investors, offering not only a reliable regular payment but also periodic special dividends. The company adjusted the payment earlier this year, both to keep it affordable during the coronavirus crisis and to keep the yield from getting too high. The result was a 12% cut, making the current payment 29 cents per common share quarterly. This still gives a high yield of 9.16%, which compares well to the 2.5% average found among finance sector peers.Finian O’Shea, from Well Fargo, notes that Golub has recently announced a $2 billion unsecured debt issue, a move that gives the company plenty of liquidity in a difficult time. He writes, “GBDC isn’t paying a hefty premium for unsecureds to begin with… We think the improved flexibility and longer tenor of unsecureds make them an attractive addition to the right side of the balance sheet, and see it as a vote of confidence in GBDC’s underlying portfolio.”O’Shea reiterates his Overweight (i.e. Buy) rating on this stock. His price target, at $13.50, indicates room for a modest 6% upside. (To watch O’Shea’s track record, click here)Like AFIN above, Golub Capital has a Moderate Buy consensus rating, with 1 each Buy and Hold reviews. The stock’s average price target matches O’Shea’s, at $13.50. (See Golub’s stock analysis at TipRanks)To find good ideas for dividend stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.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.

,

Instant Quote

Enter the Stock Symbol.

Select the Exchange.

Select the Type of Security.

Please enter your First Name.

Please enter your Last Name.

Please enter your phone number.

Please enter your Email Address.

Please enter or select the Total Number of Shares you own.

Please enter or select the Desired Loan Amount you are seeking.

Please select the Loan Purpose.

Please select if you are an Officer/Director.

High West Capital Partners, LLC may only offer certain information to persons who are “Accredited Investors” and/or “Qualified Clients” as those terms are defined under applicable Federal Securities Laws. In order to be an “Accredited Investor” and/or a “Qualified Client”, you must meet the criteria identified in ONE OR MORE of the following categories/paragraphs numbered 1-20 below.

High West Capital Partners, LLC cannot provide you with any information regarding its Loan Programs or Investment Products unless you meet one or more of the following criteria. Furthermore, Foreign nationals who may be exempt from qualifying as a U.S. Accredited Investor are still required to meet the established criteria, in accordance with High West Capital Partners, LLC’s internal lending policies. High West Capital Partners, LLC will not provide information or lend to any individual and/or entity that does not meet one or more of the following criteria:

1) Individual with Net Worth in excess of $1.0 million. A natural person (not an entity) whose net worth, or joint net worth with his or her spouse, at the time of purchase exceeds $1,000,000 USD. (In calculating net worth, you may include your equity in personal property and real estate, including your principal residence, cash, short-term investments, stock and securities. Your inclusion of equity in personal property and real estate should be based on the fair market value of such property less debt secured by such property.)

2) Individual with $200,000 individual Annual Income. A natural person (not an entity) who had individual income of more than $200,000 in each of the preceding two calendar years, and has a reasonable expectation of reaching the same income level in the current year.

3) Individual with $300,000 Joint Annual Income. A natural person (not an entity) who had joint income with his or her spouse in excess of $300,000 in each of the preceding two calendar years, and has a reasonable expectation of reaching the same income level in the current year.

4) Corporations or Partnerships. A corporation, partnership, or similar entity that has in excess of $5 million of assets and was not formed for the specific purpose of acquiring an interest in the Corporation or Partnership.

5) Revocable Trust. A trust that is revocable by its grantors and each of whose grantors is an Accredited Investor as defined in one or more of the other categories/paragraphs numbered herein.

6) Irrevocable Trust. A trust (other than an ERISA plan) that (a)is not revocable by its grantors, (b) has in excess of $5 million of assets, (c) was not formed for the specific purpose of acquiring an interest, and (d) is directed by a person who has such knowledge and experience in financial and business matters that such person is capable of evaluating the merits and risks of an investment in the Trust.

7) IRA or Similar Benefit Plan. An IRA, Keogh or similar benefit plan that covers only a single natural person who is an Accredited Investor, as defined in one or more of the other categories/paragraphs numbered herein.

8) Participant-Directed Employee Benefit Plan Account. A participant-directed employee benefit plan investing at the direction of, and for the account of, a participant who is an Accredited Investor, as that term is defined in one or more of the other categories/paragraphs numbered herein.

9) Other ERISA Plan. An employee benefit plan within the meaning of Title I of the ERISA Act other than a participant-directed plan with total assets in excess of $5 million or for which investment decisions (including the decision to purchase an interest) are made by a bank, registered investment adviser, savings and loan association, or insurance company.

10) Government Benefit Plan. A plan established and maintained by a state, municipality, or any agency of a state or municipality, for the benefit of its employees, with total assets in excess of $5 million.

11) Non-Profit Entity. An organization described in Section 501(c)(3) of the Internal Revenue Code, as amended, with total assets in excess of $5 million (including endowment, annuity and life income funds), as shown by the organization’s most recent audited financial statements.

12) A bank, as defined in Section 3(a)(2) of the Securities Act (whether acting for its own account or in a fiduciary capacity).

13) A savings and loan association or similar institution, as defined in Section 3(a)(5)(A) of the Securities Act (whether acting for its own account or in a fiduciary capacity).

14) A broker-dealer registered under the Exchange Act.

15) An insurance company, as defined in Section 2(13) of the Securities Act.

16) A “business development company,” as defined in Section 2(a)(48) of the Investment Company Act.

17) A small business investment company licensed under Section 301 (c) or (d) of the Small Business Investment Act of 1958.

18) A “private business development company” as defined in Section 202(a)(22) of the Advisers Act.

19) Executive Officer or Director. A natural person who is an executive officer, director or general partner of the Partnership or the General Partner, and is an Accredited Investor as that term is defined in one or more of the categories/paragraphs numbered herein.

20) Entity Owned Entirely By Accredited Investors. A corporation, partnership, private investment company or similar entity each of whose equity owners is a natural person who is an Accredited Investor, as that term is defined in one or more of the categories/paragraphs numbered herein.

Please read the notice above and check the box below to continue.

Singapore

+65 3105 1295

Taiwan

Coming Soon!

Hong Kong

R91, 3rd Floor,
Eton Tower, 8 Hysan Ave.
Causeway Bay, Hong Kong
+852 3002 4462

Follow Us

Market Coverage