3 High At least 8% Dividend Stocks; Analysts say ‘Buy’
The US goes to the polls on Tuesday (actually, the US voted a few weeks early, now), and while Democrat Joe Biden takes the lead in polls, there is some evidence to suggest that President Trump can still win the second period. Finally, with all of the early voting, mass absentee voting, and long counting deadlines, we may not know who the winner was on Tuesday night. It̵7;s an uncertain situation and the financial markets don’t like it. This brings us to dividend stocks. Investors want a pad, something to protect their portfolios in case the market falls and dividends just bring that. These profit-sharing payments to stock holders provide a steady stream of income, often reliable even during modest downturns. Wall Street analysts have been doing some work for us, accurately identifying dividend stocks that have kept high yields, with at least 8% accuracy. Opening the TipRanks database, we look at the details behind those payments to find out what else makes these stocks attractive to buyers. (MO) We’ll start with Altria Group, the tobacco company known for its iconic Marlboro cigarettes. . Altria, like many stocks known as ‘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 volatile human mentality in a wild year like 2020: People will bend over if necessary, but they won’t give up their little pleasures. That is exactly what cigarettes are like, and although overall smoking rates have declined in recent years, Altria has had steady financial results over the last few quarters. Both first and second quarter saw earnings of $ 1.09, much higher than the 97 cents expected in Q1 and a modest beat from Q2 Q2 forecast of $ 1.06 Revenue hit $ 5.06 billion in Q2, matching the previous two quarters. Looking ahead, analysts expect Altria to post $ 1.15 per share of earnings on $ 5.5 billion in revenue when reporting third-quarter results. That report will be due in the morning. roof. Achieving those results will help Altria maintain its dividends – even though the company has a long-term, very public commitment, to do so. Altria has held a reliable dividend for the past 12 years, and the last payment in September, the company even slightly increased its payout by 2.4%. Current dividends are 86 cents per common share, equivalent to $ 3.44 annually and yield an impressive 8.8%. Looking at Altria in the lead of the third quarter report, Deutsche Bank analyst Stephen Powers writes, “[We] a positive bias on corporate fundamentals as we approach MO results next week – underpinned by a need for a healthy scanned channel within MO’s core tobacco businesses, With a special strength in cigarettes promoted by the Marlboro brand … we believe that continuing to operate in its core business will help MO to position more reliably as an investment. on a stable core cigarette… ”Powers rates the stock as Buy, and his $ 51 price target implies a 37% increase next year. (To view Powers tracking profile, click here) Overall, Altria has a Moderate Buy rating from analyst consensus, based on 3 Buys and 2 Holds established in recent weeks. here. The stock’s current share price is $ 37.04 and its average price target of $ 46 shows a 24% increase in one year. (See MO stock analysis on TipRanks) American Finance Trust (AFIN) Next on our list is Real Estate Investment Fund, REIT. These companies are known for their high dividends, a fact due to the lack of strict tax regulations. REIT is required to return a certain rate of return directly to shareholders and dividends are one of the surest means of compliance. AFIN, which focuses its portfolio on retail properties – single-tenant and multi-tenant services, is typical of its niche. AFIN boasts big companies like Home Depot, Lowe’s and Dollar General among its top ten tenants, and announced earlier this month that they had captured more than 91% of their rents in the third quarter. Looking at Q3 business results next week, EPS is expected at 23 cents, up 15% from Q2. The company offers monthly dividends, at a rate of 7.1 cents per common share, instead of the more common quarterly payments. Monthly format allows for some flexibility in managing adjustments to billing rates; in April, AFIN reduced its dividend from 9 cents to 7.1 as part of an effort to manage the impact of the corona crisis on its business. Current payout amounted to 85.2 cents per share and yielded a sharp increase of 14.7 percent. This is seven times higher than the average dividends for S&P 500 companies. Riley analyst Bryan Maher notes the challenges AFIN faces, as owner and person. Real estate management in times of economic recession, but confidence in the company’s ability to meet the challenges. This is not surprising given its portfolio of large number of retail properties. However, 71% of the portfolio is retail focused on necessities, with the remainder being distribution and office real estate. As such, AFIN collected 84% of the rent due in Q2 / 20, including 96% of the rent due from the top 20 tenants. July rental collection improved to 88%. AFIN has actively worked with certain tenants to negotiate rental deferral / credit… ”noted Maher. Ultimately, Maher rates AFIN’s stock as Buy and comes up with a $ 10 price target. At current trading levels, this shows a strong one-year upside potential of 76%. (To view Maher’s tracking profile, click here) AFIN is priced at $ 5.69 and its average target matches Maher’s, at $ 10. Stocks have a Moderate Buy from consensus analyst’s, based on an even split between Buy and Hold ratings. (See AFIN stock analysis on TipRanks) Golub Capital BDC (GBDC) Last but not least is Golub Capital, a business development and asset management company. Golub works with mid-market companies, providing finance and lending solutions. The company boasts a market capitalization of $ 2.2 billion, as well as over $ 30 billion under management. Shares have fallen 28% year-to-date. Earnings, which fell in Q4 of 19, rose to 2020. The first quarter showed 33% of the stock, while the second quarter figure was 28 cents. Going forward, the forecast is expected to repeat second quarter EPS figures, 28 cents. Revenue is also not stable; the first quarter suffered a deep net loss, but the second quarter saw profits rise again by $ 145 million. This is the highest quarterly revenue figure in the past year.Golub believes in maintaining dividends to investors, providing not only a reliable regular payout, but also an exceptional dividend. period. The company adjusted payments earlier this year, both to keep prices affordable during the coronavirus crisis and to keep yields from getting too high. The result is a 12% cut, leaving the current payout at 29 cents per quarterly common share. This still yields a high yield of 9.16%, compared with the 2.5% average found in peers in the financial sector. the company has a lot of liquidity in difficult times. He writes, “GBDC does not have to pay a hefty premium for starting uncertainties… We think that improved flexibility and the longer duration of the uncertainties make them a Attractive addition to the right side of the balance sheet and see it as a confidence vote on GBDC’s underlying portfolio. ”O’Shea reiterated his Overweight (ie Buy) rating on this stock. His price target, at $ 13.50, shows a modest 6% increase. (To see O’Shea’s performance, click here) Like AFIN above, Golub Capital has a Moderate Buy consensus rating, with each Buy and Hold rating. Average stock price target is consistent with O’Shea, at $ 13.50. (See Golub stock analysis at TipRanks) To find good ideas for dividend stocks trading at attractive valuations visit the Best Stocks to Buy of TipRanks, a new tool Launches that consolidate all of TipRanks’ equity insights. only of prominent analysts. Content is used for informational purposes only. It is very important to do your own analysis before making any investments.