3 “Strong Buy” dividends higher than 9%
The market has performed well by the end of 2020 and will start on a bullish trajectory in 2021. As investors seem to have set their sights on the pandemic and hope to show signs of a rapid recovery, all three major indices have recently surged to record highs. Senior strategist Edward Yardeni believes that economic recovery will lead to economic slowdown. As the COVID vaccination program allows for further economic opening and more people return to work, Yardeni predicts a wave of pent-up demand, wage increases and price increases-in short, the incentives for inflation. Yardeni pointed out: “In the second half of the year, we may be looking for some means to increase consumer prices, which is not good for overvalued assets.”
; The warning sign to look for is the rise in yields in the US Treasury market. If the Fed relaxes its low interest rate policy, Yardeni will be the first to see changes in US Treasuries. This situation is tailored for the defensive stock market, which will naturally make investors focus on high-yield dividend stocks. Opening the TipRanks database, we found three stocks with positive signs: a strong buy rating, with a dividend yield starting at 9% or higher-and recent analyst comments pointed to double-digit upside. We will start with CTO Realty Growth, a Florida real estate company. Last year, it made an exciting decision for dividend investors: the company announced that it would change its tax status to real estate investment trusts (REITs) as of 2020 The tax year on December 31 of the year. REITs are known for their high dividend yield, which is a product of tax law requirements that require these companies to return a high percentage of their profits directly to shareholders. Dividends are usually the way to return. As a background, CTOs have a variety of real estate investment portfolios. These assets include 27 income properties in 11 states with a total area of more than 2.4 million square feet and 18 rentable billboards in Florida. The income properties are mainly shopping centers and retail stores. In the third quarter (latest report), the CTO sold approximately 3,300 acres of undeveloped land for US$46 million, acquired two income properties for US$47.9 million, and collected approximately 93% of the contract base rent. . The company also received a temporary special assignment to convert to REIT status; the purpose is to enable the company to comply with income declaration regulations in the 2020 tax year. A one-time distribution of cash and stock, totaling $11.83 per share. The regular dividend paid in the third quarter was 40 cents per common share. Increased to $1 in the fourth quarter, an increase of 150%; this was done again to make the company meet REIT status requirements. Based on the current dividend rate, the yield is 9.5%, which is much higher than the average level of peer companies in the financial industry. Craig Kucera, an analyst at B. Riley, believes that CTOs have many options to expand their portfolio through acquisitions: the high end of the expected disposal guidance of $33 million was reached in the fourth quarter of 20, bringing year-to-date disposals to nearly $85 million. , The largest of which is related to the lessee’s exercise of the option to purchase the building from the CTO of Aspen, Colorado. Estimated cash and more than US$30 million in cash and restricted cash for other acquisitions, we expect CTO to be active again in 1H21. “For this reason, Kucera rated the CTO as “Buy” and set a target price of US$67. At the current level, his goal means a 60% upside in a year. Overall, the CTO has recorded Three comments from Wall Street analysts, they all agreed that this stock is a “buy”, which made the “strong buy” analysts unanimously agree. The issue price of these stocks is $41.85, and their average price target is $59.33. , Indicating that there is about 42% room for growth next year. (See CTO stock analysis on TipRanks) Holly Energy Partners (HEP) The energy industry with high cash flow is also known for high-paying dividend stocks. Holly Energy Partners is the field’s A midstream transportation company that provides pipelines, terminals and warehousing services to producers of crude oil and petroleum distillate products. Most of Holly’s operations are located in Colorado-Utah and New Mexico-Texas-Oklahoma. 2019 This is the last full year for which data are available. The company’s total revenue was US$533 million. In 2020, the company’s revenue declined in the first and second quarters, but rebounded in the third quarter, reaching 127.7 million US dollars. Holly’s reported distributable cash flow (used to pay dividends) was $76.9 million, a year-on-year increase of more than $8 million. This supports a dividend of 35 cents per common share, or $1.40 per year. At this rate, the dividend yield The rate is as high as 10%. WellFargo analyst Michael Blum pointed out the dividend, “Our model shows that at this level, the distribution is sustainable because [lost revenue] It was offset by the contribution of the inflation escalator in the HEP pipeline contract and the Cushing Connect joint venture project. Blum has set a price target of US$20 for HEP and gave it an “overweight” rating. His goal implies a 38% upside in the next 12 months. (To view Blum’s historical record, click here)” Blum added: “Our rating mainly reflects the partnership’s stable, fee-based cash flow, solid yield and conservative assets Balance Sheet. “Wall Street agrees with Blum’s assessment of HEP to a large extent. As shown by the consensus rating of “Strong Buy” analysts, the rating is supported by 6 comments and the buy-to-hold ratio is 5:1. The average target price of US$18.67 indicates that the stock still has room to rise by about 29% this year. The HEP stock analysis conducted on TipRanks) DHT Holdings (DHT) is only part of the global oil industry transportation network, and the tanker is Another company that transports crude oil, petroleum products and liquefied natural gas on a global scale. The company has a fleet of 27 tankers, all of which are rated as VLCC (Very Large Crude Oil Carriers), which are 100% owned by the company. The tonnage ranges from 298K to 320K. VLCC is the main force of the global tanker network. The continuous revenue growth in the fourth quarter even during the “corona half” period of 1H20, DHT revenue fell from the second quarter of the 20th quarter to the third quarter of the 20th quarter. Revenue for the quarter fell from 245 million US dollars to 142 million US dollars. It is important to note that the third quarter revenue results are still up 36.5% over the same period last year. Earnings per share were 32 cents, compared with the third quarter of 19 Compared with the loss of 6 cents, there has been an astonishing annual rebound. DHT has a history of adjusting dividends when necessary to align with profitability. The company did this in the third quarter, paying 20 cents per common share is 5 Dividend cut for the first time in four quarters. The overall policy is positive for dividend investors because the company has not missed a dividend for 43 consecutive quarters-an amazing record. Calculated at an annualized rate of return of 80 cents per share, The dividend yield reached a staggering 14%. Kepler analyst Petter Haugen, who is responsible for DHT, believes that the company’s contract schedule may increase returns. Haugen noted: “By the end of the first quarter of 2021, 8 out of 16 ships Vessel has terminated its TC contract and we believe that DHT is in a favorable position when we expect freight prices to rise in the second half of 2021. “Haugen learns more,”[The] The main potential drivers are still intact: fleet growth will be very low (average growth rate of 1% for 2020-23E), and the United States will eventually become a net exporter of crude oil at sea, which will further boost US demand for oil tankers . We expect that soon after oil demand returns to normal, the spot exchange rate will increase again in 2021. We expect the average price of VLCC in 2022E to be US$41,000 per day and the average price of VLCC in 2023E to be US$55,000 per day. His target price is $7.40, which indicates that the stock can grow by 34% in the next few months. (To view Haugen’s track record, click here) The rest of Wall Street is getting in the car. The 3 buys and 1 position allocated in the last three months have reached the consensus of strong buy analysts. In addition, the average price target of $6.13 means that its potential upside is about 11%. (See DHT stock analysis on TipRanks) To find a great idea for dividend stocks that trade at attractive valuations, visit TipRanks’ Best Buys Buy, a newly launched tool that combines TipRanks’ All stock insights. Limited to those analysts with characteristics. The content is for reference only. Before making any investment, it is very important to conduct your own analysis.