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2 Large Dividend Stock Yields at Least 10%; Here’s What You Need to Know

Stock markets are up and running at record levels, a condition that would normally make life difficult for dividend investors. High market values ​​usually result in lower dividend yields – but even in the current climate, it is still possible to find a high dividend payer. However, you need to look carefully. The story of last year’s market has been unusual, to say the least. Last winter saw the steepest and deepest recession in the market’s history – but it was followed by a rapid recovery that is only now slowing down. Many companies withdrew their dividends at the height of the corona panic, but now find that the yield is too low to attract investors, and are looking to start increasing payments again. In short, the stock market valuation balance is out of whack, and equities are still trying to recover it. It leaves a dark picture for investors as they try to navigate these muddy waters. Wall Street analysts and the TipRanks database together can bring some sense to the seemingly patternless situation. The analysts review the stocks, and explain how they fit in; the TipRanks data provides objective context, and you can decide if this 10% dividend yield is right for your portfolio. Capital Ready Corporation (RC) We will start with a real estate investment trust (REIT) focused on the commercial market segment. Ready Capital buys commercial real estate loans, and securities backed by them, as well as the origination, financing and management of such loans. The company’s portfolio also includes multi-family dwellings. Ready Capital reported solid results in its last quarterly statement, for 3Q20. Earnings came in at 63 cents per share. This result exceeded expectations by 75% and grew 133% year on year. The company finished Q3 with over $ 221 million in cash and liquidity. During the fourth quarter of 2020, Ready Capital closed loans totaling $ 225 million for projects in 11 provinces. Projects include refinancing, redevelopment and refurbishment. Full results for the fourth quarter will be reported in March. The extent of Ready Capital’s confidence in the company’s recent announcement of its merger with Anworth Mortgage can be seen in a deal that will create a combined $ 1 billion entity. In the meantime, investors should note that Ready Capital has announced its 4Q20 dividend, and the payment for the second time has been increased consecutively. The company cut the dividend in the second quarter, when COVID struck, as a precaution against low earnings, but has been raising the payment as pandemic fears begin to ease. The current dividend of 35 cents per share will be paid at the end of this month; it is annual to $ 1.40 and gives a sky-high yield of 12%. Covering the stock by Raymond James, 5-star analyst Stephen Laws writes, “Recent results have benefited from interest-free income and strength in the loan origination segment, and we expect high contributions to continue in the season close. This forecast gives us more confidence about dividend sustainability, and we believe higher pricing multiples are needed. “Laws sees the merger of the company with Anworth net-positive, and refers to the merger, he said,”[We] expect RC to relocate capital currently invested in the ANH portfolio to new investments in RC’s targeted asset classes. “In line with his comments, Laws rating RC to share Performance (ie Purchase) Performance, and set a $ 14.25 price target. Its target implies a 23% upside over the next 12 months. ( To view Laws history, click here) There are two recent reviews of Ready Capital and both are Buy, giving the stock a Moderate Buy rating, shares in this REIT are selling for $ 11.57 while the price target average at $ 13.63, indicating room for ~ 18% upside growth in the coming year. (See RC stock analysis on TipRanks) Nustar Energy LP (NS) The liquid energy and chemical markets may not be showing as natural partners, but they see a great deal of overlap .. Crude oil and natural gas are very dangerous to transport and store, an important attribute they share with chemicals and industrial products such as ammonia and asphalt Nustar Energy is a major midstream player in the oil industry, with more than 10,000 miles of pipeline, along 73 terminal and storage facilities. The relatively low oil prices of the last two years have broken into the top and bottom lines of the energy sector – not to mention hitting the demand side COVID pandemic. These factors are reflected in the results of Nustar, which dropped in the first half of 2019 and has remained low ever since. The 3Q20 number, at $ 362 million, is near the median value of the last six quarters. Through all of this, Nustar has maintained its commitment to a solid dividend payment to investors. In a nod to the pandemic, the company reduced its dividend earlier this year by a third, citing the need to keep the payment sustainable. The current payment, last sent in November, is 40 cents per share. At that rate, it is annual to $ 1.60 and gives a 10% yield. Barclays analyst Theresa Chen sees Nustar as a solid portfolio addition, writing, “We believe NS offers unique offensive and defensive features that position the stock well against mid-stream peers. NS benefits from a durable refinery product footprint, exposure to core acres in the Permian basin, a foothold in the growing renewable fuel value chain, as well as strategic Corpus Christi export assets … we believe NS is a compelling investment idea over the 12 next month. . ”Chen sets a $ 20 price target on the stock, backing his Overweight (ie Buy) rating and suggesting ~ 27% upside for the year. (To watch Chen’s history, click here) Interestingly, unlike Chen’s bullish stance, Street is currently lukewarm about the mid-stream company’s outlook. Based on 6 analysts tracked by TipRanks in the last 3 months, 2 are rating NS and Buy, 3 suggest Hold, and one recommends Sell. The average 12 month price target is $ 16.40, indicating a ~ 5% upside from current levels. (See NS stock analysis on TipRanks) To find good ideas for dividend stocks trading at attractive valuations, visit TipRanks Best Stocks to Buy, a newly launched tool that unites all TipRanks equity insights. Disclaimer: The opinions expressed in this article are solely those of the analysts concerned. The content is intended for informational use only. It is very important to do your own analysis before making any investment.

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