3 “Strong Buy” stocks with an 8% dividend yield
Let’s talk about portfolio defense. After manipulating the Social Flash Mob Market for the past week, this topic shouldn’t be ignored. That doesn’t mean the markets are collapsing. After losing 2% at the close of last week’s Friday session, this week’s trading started on a positive note as the S&P 500 rose 1.5% and the Nasdaq rose 2.5%. The underlying bullish factors – a more stable political scene steadily driving COVID vaccination programs – still play a role, even if not quite as strong as investors had hoped. While heightened volatility might linger with us for a while, it’s time to consider defensive stocks. And that will bring us to dividends. By providing a steady stream of income regardless of market conditions, a reliable dividend stock provides a pad for your investment portfolio when the stock ceases to appreciate. With that in mind, we used the TipRanks database to get three dividend stocks that yield 8%. However, that’s not all they offer. Each of these stocks received enough street praise to earn a consensus rating of « Strong Buy ». New Residential Investment (NRZ) First we examine the REIT sector, Real Estate Investment Trusts. These companies have long been known for dividends that are both high-yielding and reliable. Due to the company’s tax compliance, REITs are required to return a certain percentage of profits directly to shareholders. NRZ, a medium-sized company with a market capitalization of $ 3.9 billion, has a diverse portfolio of residential mortgages, original loans, and mortgage loan service rights. The company is based in New York City. NRZ has an investment portfolio of 20 billion the US dollar, which has generated dividends of US $ 3.4 billion since the company’s inception. The portfolio has proven resilient in the face of the corona crisis, and after a difficult first quarter last year, NRZ posted rising gains in the second and third quarters. The most recently reported third quarter showed GAAP earnings o $ 77 million, or 19 cents per share. This EPS was lower than in the previous year, but a strong trend reversal compared to the 21-cent loss reported in the previous quarter. The rising income has enabled NRZ to raise the dividend. The Q3 payment was 15 cents per common share; The dividend for the fourth quarter was increased to 20 cents per common share. At this rate, the dividend annualizes to 80 cents, making an impressive 8.5%. In another move to return profits to investors, the company announced in November that it had approved $ 100 million share buybacks. BTIG analyst Eric Hagen is impressed with New Residential – especially the company’s solid balance sheet and liquidity. “[We] like the ability to potentially build capital through retained earnings while maintaining a competitive payout. We believe the dividend increase underscores the strengthening of the company’s liquidity position. We believe NRZ has been able to release capital because it has raised approximately $ 1 billion in securitized debt for its MSR portfolio through two separate transactions since September, ”said Hagen. In line with his comments, Hagen rates NRZ as a buy and its target price of $ 11 implies an upward movement of 17% for the coming year. (To see Hagen’s track record, click here.) It’s not often that all analysts agree on a stock. When this happens take note of this. NRZ’s consensus rating for strong buy is based on unanimous 7 purchases. The stock’s average target price of $ 11.25 indicates an upward movement of ~ 20% from the current stock price of $ 9.44. (See NRZ stock analysis on TipRanks) Saratoga Investment Corporation (SAR) With the next stock we switch to the investment management area. Saratoga specializes in mid-market debt, capital appreciation and equity, with over $ 546 million under management. Saratoga’s portfolio is broad, including industrial, software, waste disposal and home security. Saratoga saw a slow – but steady – rebound from the coron crisis. The company’s sales declined in the first quarter of 20 and have grown slowly since then. The report for the third quarter of the fiscal year, published in early January, showed $ 14.3 million. Adjusted for pre-tax taxes, Saratoga’s net investment income of 50 cents per share exceeded the 47-cents forecast by 6%. They say the race is slowly and steadily winning, and Saratoga has shown investors a generally stable hand over the past year. The stock has rebounded 163% from its low after the corona last March. And the dividend, which the company cut in the second quarter, has increased twice since then. The current dividend of 42 cents per common share was declared for payment on February 10 last month. The annualized payment of $ 1.68 gives a return of 8.1%. The analyst Mickey Schleien from Ladenburg Thalmann is optimistic about Saratoga and writes: “We believe that the SAR portfolio is relatively defensive and focuses on software, IT services, education services and the CLO. SAR’s CLO is still up to date and the company is aiming to refinance / upgrade from the we believe it could have a positive impact on our forecast. The analyst continued, « Our model assumes that SAR will use cash and SBA debt to fund net portfolio growth. We believe the Board of Directors will continue to increase the dividend given the performance of the portfolio, the existence of undistributed taxable income and the economic benefits of the Covid-19 vaccination program. “To this end, Schleien rates SAR a Buy along with a price target of USD 25. This number implies an upward trend of 20% from the current level. (To see Schleien’s track record, click here.) Wall Street analysts agree with Schleien on this stock. The other three registered ratings are buys and the analysts consensus rating is a strong buy. Saratoga’s shares trade for $ 20.87 with an average target price of $ 25.50, indicating an upward movement of 22% over the next 12 months. (See SAR stock analysis on TipRanks) Hercules Capital (HTGC) Last but not least is Hercules Capital, a venture capital company. Hercules provides early stage funding support to small client businesses with a scientific background. Hercules’ customers are Life Life, Technology and Financial SaaS. Since its inception in 2003, Hercules has invested over $ 11 billion in more than 500 companies. The quality of the Hercules portfolio is evident from the company’s recent performance. The stock has fully rebounded from last winter’s corona crisis, rebounding 140% from its low last April. The result has also recovered. For the first nine months of 2020, HTGC posted net investment income of $ 115 million, or 11% more than the same period in 2019. For dividend investors The bottom line is that the net investment income covered the distribution – in fact, it was 106% of the base distribution. The company was confident enough to boost sales with an additional 2 cents payment. The combined payout results in an annualized payment of $ 1.28 per common share and a return of 8.7%. In yet another vote of confidence, Hercules completed a $ 100 million investment grade bond offering in November, raising capital for debt repayments, new investments and corporate purposes. The bonds were offered in two tranches, each valued at $ 50 million. The bonds mature in March 2026. Analyst Crispin Love covers Piper Sandler’s stock and sees plenty to love in HTGC. “We continue to believe that HTGC’s focus on fast-growing technology and life science companies positions the company well in the current environment. In addition, Hercules is not dependent on a COVID recovery as it does not invest in « vulnerable » sectors. Hercules also has a strong liquidity position which should allow the company to act quickly when it finds attractive investment opportunities, « commented Love. All of the above convinced Love to rate HTGC as an outperform (i.e. buy). In addition to the call, he also set a target price of $ 16, indicating upside potential of 9%. (To see Love’s tr ack record, click here) The stock’s recent appreciation has brought Hercules stock up to its average target price of $ 15.21 and only ~ 4% above the trading price of $ 14.67. Wall Street doesn’t seem to mind, however, as the analysts consensus rating is a unanimous strong buy based on 6 recent buy-side ratings. (See HTGC stock analysis too TipRanks.) To find great ideas for trading dividend stocks at attractive valuations, visit TipRanks ‘Best Stocks to Buy, a newly launched tool that brings together all of the insights into TipRanks’ stocks. Disclaimer: The opinions expressed in this article are solely those of the analysts presented. The content is intended to be used for informational purposes only. It is very important that you do your own analysis before making any investment.
Is CHF stronger than USD?
Over the past 15 years, the Swiss franc has appreciated significantly against both the US dollar and the euro. In recent years, factors such as the European debt crisis and the US Federal Reserve’s accommodative monetary policy have boosted the Swiss franc.
What is a good salary in Switzerland?
|Salary levels||Average Gross Salary (USD)||Average Gross salary|
|35K||$ 34,754||CHF 32.837|
|25K||$ 25,614||CHF 24,360|
|15K||US $ 15,101||CHF 14,188|
|Fewer||US $ 4,392||CHF 4,280|
Is the Swiss Franc getting stronger?
Short-term financial safeguards ensure a certain stability, but in the medium and long term this is not a viable solution. Fundamental economic factors such as national debt in most major economies and the uncertainties surrounding the euro make it very likely that the Swiss franc will continue to appreciate in the long term.
Why is it so expensive in Switzerland?
Switzerland is expensive because, as others have written, the Swiss franc is grossly overvalued. If the euro to franc exchange rate were 1: 2, Switzerland would still be expensive, but not so outrageous. If it were 1: 3, prices and salaries in Switzerland would make sense.
What national currency is CHF?
The abbreviation « CHF » is derived from the Latin name of the country « Confoederatio Helvetica ». with the « F » stands for « Franconia ». The Swiss franc was officially recognized as Swiss currency in May 1850 when it replaced several currencies issued by the various cantons.
Are US dollars accepted in Switzerland?
(US dollars are generally not accepted in Switzerland.) Please note that if you pay in euros, change will be returned to you in Swiss francs. It is therefore recommended to use the Swiss franc when purchasing goods and services in Switzerland.
What currency is CNF?
For example, instead of displaying the pound-pound symbol (£), another Currency and Number Format (CNF) record could be used to display GBP in reports.
What is the Swiss Franc Symbol?
What does CHF stand for in currency?
CHF is the abbreviation for the Swiss franc, the official legal tender in Switzerland and Liechtenstein. CHF stands for Confoederatio Helvetica Franc, where Confoederatio Helvetica is the Latin name for the Swiss Confederation.
What is the strongest world currency?
1. Kuwaiti dinar. Known as the strongest currency in the world, the Kuwaiti dinar or KWD was introduced in 1960 and was initially equivalent to one pound sterling.
What is the most expensive currency?
|Sr.No.||Highest currency in the world||value of|
|10||U.S. dollar||1 USD|
|9||Swiss franc||1 CHF|
|8th||Cayman Island dollars||1 KYD|
How much does a Swiss franc cost per dollar?
XE currency converter: 1 USD to CHF = 0.887219 Swiss francs.
What does a Coke cost in Switzerland?
|Cola / Pepsi (12 ounce small bottle)||4.08Fr.|
|Water (12 ounce small bottle)||3.66Fr.|
|Milk (normal), (1 gallon)||5.94Fr.|
What does CHF 500 mean?
500 CHF = 561.22 USD at the rate on January 31, 2021. The page contains data on the current value of five hundred Swiss francs in US dollars.
Do you need cash in Switzerland?
In Switzerland, cash remains the dominant payment method. It is assumed here that everyone has cash with them, even in an increasingly digital economy. Most won’t get caught buying a sandwich or paying for a haircut when the card payment machine is down.