3 big dividend stocks with a minimum yield of 8% Wells Fargo said “buy”
With the advent of the Georgia election and the upcoming Trump administration’s exit, the political situation in the near and medium term will become clearer: the Biden administration can now rely on its own progressive foundation, because it relies on the majority party, but thin – In both houses of Congress. Predictability is good for the market, and we may have predictability at least until 2022. This is the time to lock in a defensive portfolio. Research analysts at Wells Fargo have been looking for the “right”
; opportunity to buy in the market, and their choice is one step closer. They have been choosing high-yield dividend payers as investment options. The TipRanks database further revealed the company’s three selected stocks-stocks with a dividend yield of 8% or higher. Apollo Investment Corporation (AINV) looking for high-return dividends is one of the business development companies in this market. These companies provide professional financing to the middle market and provide credit and funds for small and medium-sized enterprise customers who would otherwise have difficulty accessing the capital market. Apollo Investments is a typical example, with a portfolio value of US$2.59 billion. Apollo has invested in 147 companies with an average investment of $15.9 million. The majority of its portfolio (86%) is first lien secured debt. Healthcare, business services, aviation and transportation, and high-tech companies accounted for more than half of Apollo’s investment goals. In the third quarter of fiscal year 20 (the company’s second quarter fiscal year 2021), Apollo’s earnings per share were 43 cents. The same as the previous quarter, but a decline of 18% year after year. As of the end of the quarter, the company had $268 million in available current assets and $287 million in mortgage credit. Since then, Apollo has revised its revolving credit line by extending its maturity date to December 2025. In terms of dividends, despite the corona pandemic, Apollo maintained its payment to ordinary shareholders. Apollo’s last payment was in November, with a regular dividend of 31 cents and a special dividend of 5 cents per share. The current yield has reached an impressive 11.6%. Analyst Finian O’Shea said that for Well Fargo to cover AINV, “The influence of the legacy has been weakened. This quarter only increased the income of 3 million US dollars. The annual rate of return calculated by FV is about 5.5%. We believe that traditional books The adverse impact on NOI is very small, and any realization and redeployment is regarded as a great benefit to the stock.” O’Shea gave Apollo an “overweight” (ie “buy”) rating and a target price at a price of $12.50 means that there is a 12% upside at the current level. (To watch O’Shea’s track record, click here.) Overall, Apollo recorded two comments, divided into “1 buy” and “1 hold”. The stock price is $11.17, and its average price target is $11.50, which means that the stock still has 3% upside potential. (Please refer to AINV stock analysis on TipRanks) Goldman Sachs BDC (GSBD) Next, Goldman Sachs BDS is the entry of this banking giant into the field of special financial business development. GSBD is a subsidiary of Goldman Sachs, focusing on mid-market companies, providing closed managed investment services and mid-market credit channels. In 2020, GSBD’s share price performance has maintained a stable rebound from the initial recession caused by the corona crisis last winter. . By the end of the year, the trading price of this stock had reached the level of January 2020. In November, the company was confident enough to price $500 million in unsecured bonds with an interest rate of 2.875% and a maturity date of January 2026. It also repaid the revolving credit line and increased the interest on existing debt. In addition, in November, GSBD reported 80 cents per share for the quarter ended September 30. Earnings are sufficient to support a stable dividend of 45 cents per share-the company announced a special dividend of 15 cents in three installments in 2021, and the current yield of regular dividends exceeds 9%. Among the longs is Finian O’Shea of Wells Fargo, who is also in charge of AINV. The analyst wrote:[We] I believe that a high-quality investment platform and a shareholder-friendly structure will continue to drive attractive long-term returns… GSBD’s quality and reasonable price… For those who buy BDC, given what we have seen, GSBD may always be Taking this into account in the portfolio discussion, O’Shea rated GSBD as “overweight” (ie, “buy”) and set its target stock price at $19.50. This number means that there is 5% upside at the current level. (To watch O’Shea’s track record, click here). Again, this is a stock whose buy and hold ratings are evenly divided, which gives the stock a consensus rating of medium buy analysts. The issue price of these stocks is US$18.59, and the average target price is US$19.50. (See GSBD stock analysis on TipRanks) Exxon Mobil (XOM) starting from BDC, we will turn to the oil industry. Exxon Mobil is one of the participants of Big Oil, with a market capitalization of US$190 billion and revenue in 2019 (the last year for which full-year data is available) of US$264.9 billion. The company produces approximately 2.3 billion barrels of oil equivalent per day, ranking among the top five global hydrocarbon producers. The low oil prices in 2H19 and the corona crisis in 1H20 reduced revenue in the first half of last year, but in the third quarter, XOM reported revenue of US$45.7 billion. Despite the year-on-year decline, it increased by 40% month-on-month. Although the oil industry has faced various unfavorable factors in the past 18 months, XOM still maintains a reliable dividend and paid its latest dividend in December 2020. Earnings per common share were 87 cents, the annualized rate of return was $3.48, and the rate of return was 8.4%. Roger Read of Wells Fargo wrote in a report by a large oil company: “By 2021, we expect that the macro economy will receive more support, but realize that there are major challenges and maintain the average Brent crude oil The price is less than $50…”, the analyst added, especially shifting his view to XOM, “We do not expect production to grow, and only a small amount of free cash flow will be generated, including disposal gains. However, this is not the same as in the past. The large amount of cash consumption in the year and the increase in leverage have changed a lot. According to his comments, Read’s rating on XOM stock is “overweight” (ie, “buy”), and its target price of $53 indicates that the stock has 17 % Upside. Growth in the coming year. (To view Reid’s track record, click here) XOM’s analyst consensus rating is “Hold”, which clearly shows that Wall Street is still cautious about the energy industry. This is Based on 10 reviews, including 3 purchases, 6 holdings and 1 sale. The price of these stocks is $45.15, and their average price target is $47.33, indicating that the stock has a slight upside of about 5% (see TipRanks XOM stock analysis). The newly launched tool combines all the asset insights of TipRanks. Disclaimer: The views expressed in this article are those of the main analysts only. The content is for reference only. Before making any investment, do your own The analysis is very important.