2 large shares with a dividend yield of 10%; RBC says “Buy”
Rising commodity prices, additional federal incentives and rising government bond yields are all increasing the specter of inflation. Furthermore, there is growing concern that stocks – and technology ones in particular – are now on estimates separate from reality. Will the changing macro climate return to the bull market soon? It’s too early to tell, but it signals that a more prudent approach to investing could be a good move right now. And that will lead us to a dividend. Investors want a decline, something that will protect their portfolio in the event of a market crash, and dividends offer just that. These payments to shareholders by profit sharing provide a steady stream of income, which usually remains reliable even in decline. RBC Capital analysts have been doing something for us, highlighting shares that pay dividends that have kept high returns, just above 10%. By opening the TipRanks database, we examine the details behind these payments to find out what else makes these promotions a tempting purchase. Annaly Capital Management (NLY) First is the Annaly Capital Management Real Estate Investment Commission (REIT). Annaly holds a portfolio of commercial real estate with a strong focus on retail (31%) and office (29%) premises. Other major investments include apartment buildings, hotels and health facilities. The company has over $ 100 billion in total assets. In the company’s fourth-quarter results, Annaly showed 5.1% economic return for Q4, far stronger than the 1.8% recorded for 2020 as a whole. EPS had 60 cents per ordinary share and more than covered the regular quarterly dividend of 22 cents. This is the third consecutive quarter with a dividend at that level; at an annual rate of 88 cents per ordinary share, the dividend yields 10.7%. This is a head above the yield of ~ 2% that can be found among peer companies in the financial sector. Annaly has a long history of adjusting dividend payouts in line with earnings, making it a reliable payer. Also interested in investors, Annaly ended Q4 with $ 8.7 billion in unencumbered assets, including cash on hand. The company used this deep pocket to approve a $ 1.5 billion share buyback program, in an attempt to return capital to shareholders and boost stock prices. RBC 5-star analyst Kenneth Lee likes what he sees in Annaly’s performance, writing: “We continue to favor Annaly’s diversified business model, strong liquidity and portfolio slope towards MBS amid the current macro background … Annaly is exposed to growth, credit assets, including residential and commercial mortgages and mid-market loans.We believe diversification should allow the NLY to switch between attractive investment opportunities. ”According to these comments, Lee rates the NLY a better result (i.e., buying), together with a target price of $ 9.50 This figure represents a 14% increase for the following year. 7 to 1 among analysts ’criticism, which favors buying over retention and gives the stakeholder a strong rating of the Strong Buying analyst’s consensus. o trade at a price of $ 8.22, and their average price of $ 9 suggests a potential growth of 9.5% over that level. (See NLY stock analysis on TipRanks) Sunoco LP (SUN) We are moving from REIT to the energy industry. Sunoco LP is the largest wholesale distributor of motor fuels in the United States and supplies more than 7,300 Sunoco gas stations to 33 countries. Among the company’s products are gasoline, diesel fuel, heating oil, jet fuel, lubricating oils and kerosene – a whole range of petroleum products, which are sold as both branded and branded products. Sunoco also controls 13 storage terminals that maintain a secure supply for retail delivery. At retail, Sunoco provides equipment at gas stations – from gas stations to payment services. The diversified business of this company enabled Sunoc to remain profitable during the corona pandemic crisis. EPS came down negatively in the first quarter, when demand fell at the height of the crisis, but recovered quickly in Q2 and has been recording year-on-year gains in each quarter ever since. EPS’s Q4 was 77 cents, up from 75 cents in the quarter last year. Distributive cash flow in this quarter decreased compared to last year, from 120 to 97 million dollars, and the company announced a quarterly dividend of 82.5 cents per ordinary share. This has remained stable compared to the previous quarter – and has actually been maintained at this level since November 2016. Sunoco has been paying reliable dividends for the past 8 years. The current annual payment is $ 3.30 per share and yields 10.6%. Covering the SUN for RBC, analyst Elvira Scotto notes that recent patterns of Arctic storm in the continental United States have negatively affected sales volume, but that other aspects have been encouraged. “SUN kept the guidelines for 2021 and noticed an improvement in the amount in January. We do not expect the recent weather conditions to have a significant impact on the amount of sun from 2021, ”said the 5-star analyst. “We believe that SUN is showing investors significant current income with an improved balance sheet. We expect SUN to maintain its distribution and expect distribution coverage to improve over time. “Scotto estimates that SUN shares a better result (i.e. Buy) and has increased the target price from $ 36 to $ 38. The figure indicates a growth of 23% in the next 12 months. (To view Scott’s results, click here) Overall, SUN shares have a rating of Moderate Buying from analysts’ consensus, based on a range of reviews, including 5 purchases, 2 retentions and 1 sale. The average share price is $ 33.50, which gives the potential for growth of 8% compared to the current trading price of $ 31. (See SUN stock analysis on TipRanks) To find good ideas for stock trading at attractive estimates, visit TipRanks ‘Best Stocks to Buy’, a newly launched tool that brings together all the insights into TipRanks equity. Disclaimer: The opinions expressed in this article are solely those of prominent analysts. The content is intended for informational purposes only. It is very important to do your own analysis before making any investment.