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2 large dividend stocks with a yield of at least 8%; Analysts say ‘buy’

Dividend stocks are always popular. They offer investors a clear path to returns, with regular cash payments and a return – a return on the initial investment – that typically far exceeds bond yields. But not all dividend-paying stocks are created the same, and some offer better opportunities than others. The dividend yield is a key metric. Among S&P listed companies, the average return is only 2%. However, the highest returns are not always the way to go. Investors should also consider stock appreciation or upside potential – these factors are not always related to dividends, but they will affect the overall returns available for any given stock. To that end, we used the TipRanks database to extract two high-yielding dividend-paying stocks that share a profile: a buy rating from the body of Street analysts; considerable upside potential; and a dividend of more than 8%. Let’s take a closer look. New York Mortgage Trust (NYMT) We’ll start with a Real Estate Investment Trust (REIT), a logical place to look for high dividend yields. REITs typically pay higher than average dividends, in order to comply with the income yield regulations of the tax code. New York Mortgage Trust, which holds a portfolio of variable rate residential mortgages, commercial mortgages, and non-agency mortgage-backed securities, is typical of its niche, both in the quality of its portfolio and its dividend yield. high efficiency. In its recent financial release in 1Q21, the NYMT listed several indicators of interest to investors. The company sold RMBS and non-agency CMBS for a total of $ 111.6 million, purchased $ 347.3 million in residential loans and ended the quarter with total assets of $ 4.72 billion . The company recorded net investment income of $ 30.3 million and was able to fund its dividend payment to the tune of 10 cents per common share. At this payout rate, the dividend pays 8.91%. This was the second consecutive dividend declaration at 10 cents; the company has been gradually increasing the payment since its reduction last summer, at the worst of the corona crisis. B. Riley’s analyst Matt Howlett has been impressed with the NYMT’s handling of the recent economic crisis, and this factor plays a prominent role in its recent launch report. “Over the past decade, NYMT has generated one of the highest economic returns in the industry, in part due to strong asset selection, low leverage and a highly efficient operating structure. While the liquidity crisis of March 2020 was a setback for the industry, the NYMT handled the crisis admirably, in our opinion, and avoided any major wear and tear on the business. In fact, we argue that as the NYMT has rebuilt itself, its origins have become more direct (acquisition of loans versus securities) and its cost of capital has declined, ”Howlett said. Consistent with those comments, Howlett is pricing the stock as a buy, and his price target of $ 6 implies a year-over-year upside potential of 36%. Based on the current dividend yield and expected price appreciation, the stock has a potential total return profile of around 45%. (To see Howlett’s track record, click here) Overall, there are four recent reviews on record for NYMT, and they break down into 2 buy, 1 hold, and 1 sell for a moderate buy consensus rating. The shares are selling for $ 4.45, and the average price target of $ 5.17 suggests a margin up to around 17% from this level. (See NYMT stock market analysis on TipRanks) Global Net Lease (GNL) Next, Global Net Lease, is another REIT. The portfolio here is built on commercial real estate properties. A review of the company’s portfolio shows 306 such properties, totaling 37.2 million square feet of rental space, leased to 130 tenants. LNG operates in 10 countries and boasts that 99.7% of its total area has been leased. The average lease has 8.3 years remaining – an important factor, as the long term ensures the stability of the portfolio. In the first quarter of 2021, LNG posted revenue of $ 89.4 million, up 12.8% from the quarter last year. The company incurred a net loss, but at $ 800,000 that loss was significantly less than the $ 5 million lost in 1Q20. Net operating income fell from $ 71.9 million a year ago to $ 81.8 million in 1Q21. GNL reported strong liquidity during the quarter, with $ 262.9 million in cash or cash equivalents and an additional $ 88.6 million available in credit. Most importantly, GNL said it received 100% of the rents due in the first quarter. GNL declared a dividend of 40 cents to common shareholders during the quarter and, through it, distributed a total of $ 36.2 million. At this rate, the dividend annualizes to $ 1.60 and yields a high yield of 8.59%. The dividend was cut last year during the corona crisis, but has remained stable for five quarters since. All of this makes for a company that is solid on the fundamentals of its business, and one that has caught the attention of analyst Bryan Maher. In his note to B. Riley, Maher writes: “LNG’s strong portfolio indicators provide an attractive setup for the remainder of 2021…. Given that LNG, in our view, is not over-leveraged and can borrow at extremely low rates, combined with prudent use of its existing ATM, we are not concerned with the ability of the REIT to fund acquisitions for meet our target of $ 300.0M for 2021. ”The analyst summed up:“ Given LNG’s well-designed industrial / office net lease portfolio and strong operating metrics, we reiterate our buy rating on shares. ” The purchase note comes with a target price of $ 23. At the current share price, that implies an increase of ~ 25% for the next 12 months. (To see Maher’s track record, click here) Some stocks go under the radar, and LNG is one of them. Maher’s is the only recent analyst review for this company. (See LNG Stock Market Analysis on TipRanks) For great ideas for dividend-paying stocks traded at attractive valuations, visit TipRanks Best Stocks to Buy, a newly launched tool that brings together all the information about TipRanks stocks. Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.


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