3 shares “Strong purchase” with dividend yield over 9%
Markets ended 2020 with a high note and began 2021 on a bullish trajectory. All three major indices recently rose to record levels as investors looked further from the pandemic and hoped for signs of a speedy recovery. Veteran strategist Eduard Yardeni sees economic recovery slowing. As the COVID vaccination program allows for further economic opening, with more people returning to work, Yardeni predicts a wave of holding back demand, rising wages and rising prices ̵
1; in short, a recipe for inflation. “In the second half of the year, we may be looking for some consumer price inflation that would not be good for overvalued assets,” Yardeni said. The warning sign to look for is a higher yield on the government bond market. If the Federal Reserve is relieved of its low-interest policy, Yardeni sees that government securities reflect the change first. A situation like this was created specifically for defense stocks – and this will naturally make investors consider high-yield dividend stocks. Opening the TipRanks database, we found three stocks that included a hat-trick with positive signs: a strong buy rating, a dividend yield starting at 9% or higher – and a recent analyst review pointing to double-digit growth. We will start with CTO Realty Growth, a Florida-based real estate company that last year made an exciting decision for dividend investors: the company announced that it would change its tax status to that of a real estate investment trust (REIT) for The tax year ending December 31, 2020. REITs have long been known for their high dividend yield, a product of the requirements of the Tax Code, that these companies return a high percentage of their profits directly to shareholders. Dividends are the usual way for this return, and against the background of the technical director there is a diverse portfolio of real estate investments. The farms include 27 income-generating properties in 11 states, covering a total area of more than 2.4 million square feet, along with 18 rental billboards in Florida. The profitable properties are mainly shopping malls and retail outlets. In the third quarter, the latest announcement, the technical director sold about 3,300 acres of undeveloped land for $ 46 million, acquired two properties with income of $ 47.9 million and collected ~ 93% of the contractual rent due. The company also allowed a one-time special distribution, in connection with its transition to REIT status; its goal was to bring the company in line with the income tax return regulation in 2020. The one-time distribution was made in cash and shares and amounted to $ 11.83 per share. The regular dividend paid in Q3 was 40 cents per ordinary share. This increased in Q4 to $ 1, a jump of 150%; again, this was done to bring the company in line with the requirements for REIT status. At the current dividend rate, the yield is 9.5%, far higher than the average among partner companies in the financial sector. Analyst Craig Kuchera of B. Riley believes the CTO has plenty of room to expand his portfolio through acquisitions: , the largest location is related to the exercise of the tenant’s option to purchase a building from a technical director in Aspen, Colorado. Following these dispositions, we have approximately> $ 30 million in cash and limited cash for additional acquisitions and expect the CTO to be active again in 1H21. “For this purpose, Kucera estimates the CTO for purchase together with a price price of 67 USD. At current levels, its target assumes a 60% one-year potential for increase. (To watch Kucera’s record, click here) Overall, the CTO has 3 reviews from Wall Street analysts, and they all agree that this stock is a purchase, making the consensus of Strong Buy analysts unanimous. The shares are priced at $ 41.85, and their average price price of $ 59.33 suggests a place for ~ 42% growth next year. (See stock analysis by TipRanks CTO) Holly Energy Partners (HEP) The energy sector, with its high cash flows, is also known for its highly paid dividend shares. Holly Energy Partners is a player in the transport sector in the sector, providing pipelines, terminals and storage services to producers of crude oil and petroleum distillates. Holly bases most of its operations in the Colorado-Utah and New Mexico-Texas-Oklahoma regions. In 2019, the last full year for which figures are available, the company saw a total of $ 533 million in revenue. In 2020, the company’s revenue fell in the first and second quarters, but recovered in Q3, reaching 127.7 million dollars. Holly reported a distributed cash flow – of which dividends are paid – of $ 76.9 million, which is more than $ 8 million compared to the previous year. This supported the payment of a dividend of 35 cents per ordinary share or $ 1.40 per year. At this rate, the dividend gives a strong 10%. Noting the dividend, Far Farho analyst Michael Bloom wrote: “Our model assumes that the distribution is sustainable at this level because [lost revenue] is offset by inflation escalators in HEP’s pipeline contracts and contributions from the Cushing Connect JV project. About 80% of HEP’s distribution is tax-deductible. “Blum gives HEP a price tag of $ 20 and an overweight rating (ie purchase). Its goal is to grow by 38% over the next 12 months. (To view Blum’s record, click here) “Our assessment primarily reflects stable, fee-based cash flows, stable returns and a conservative balance sheet,” Blum added. For the most part, Wall Street agrees with Blum’s assessment of HEP, as shown by Strong Buy analysts’ consensus rating. This rating is supported by 6 reviews, divided between 5 and 1 purchases by retention. The target of the average price, of $ 18.67, suggests that shares have room for growth of ~ 29% this year (see HEP Stock Analysis for TipRanks) DHT Holdings (DHT) The integration of the flow is only part of the transport network of the global oil industry. Tankers are another that carries bulk crude oil, petroleum products and liquefied natural gas. The Bermuda-based DHT operates a fleet of 27 crude oil tankers, all rated VLCC (a very large crude carrier). These ships are 100% owned by the company and range in tonnage from 298,000 to 320,000. VLCCs are the workhorses of the global network of tankers. four-quarters of consecutive profit even during the “half crown” of 1H20, DHT reported a consistent decline in revenue from 2Q20 to 3Q20. The top line fell from 245 million to 142 million in the quarter. However, it is important to note that the revenue result for the third quarter still increased by 36.5% on an annual basis. The 32-cent EPS represents a dramatic reversal on an annual basis of a loss of 6 cents published in 3Q19.DHT has a history of adjusting its dividend when needed to be consistent with gains. The company did so in the third quarter and the 20 percent regular payout per share was the first dividend reduction for 5 quarters. However, the overall policy is positive for dividend investors, as the company has not missed paying dividends for 43 consecutive quarters – a delightful record. At 80 cents a share a year, the dividend gives an impressive 14%. Kepler analyst Petter Haugen covers DHT and sees potential for increased returns in the company’s agreed schedule. Haugen noted: “With 8 of the 16 vessels terminating their TC contracts by the end of Q1 2021, we believe DHT is in a good position to expect cargo prices to rise in the H2 2021E.” in more detail, adds Haugen, “[The] the main main engines are still intact: fleet growth will be low (1% on average over the period 2020-23) and the US will still be a net exporter of crude oil at sea, making further growth in demand exports of tankers in the United States. We expect spot rates to improve again in 2021, shortly after the normalization of oil demand. We expect average VLCC prices of $ 41,000 / day in 2022E and $ 55,000 / day in 2023E. “According to his comments, Haugen evaluates DHT for the purchase. Its target price of $ 7.40 suggests that this stock could increase by 34% in the coming months. (To watch Haugen’s recording, click here) The rest of the street is boarded. 3 purchases and 1 retention made in the last three months contribute to the consensus of the Strong Buy analyst. In addition, the average price of $ 6.13 puts the potential up at ~ 11%. (See DHT stock analysis for TipRanks.) To find good ideas for trading dividend stocks at attractive rates, visit TipRanks’ Best Buy Shares, a newly created tool that brings together all insights into TipRanks ownership. Disclaimer: The views expressed in this article are those of the analysts submitted. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.