International RF Power Amplifier Business 2020-2027 – Market Traits & Drivers
3 big dividend stocks that yield over 7%; Raymond James Says “Buy”
Wall Street investment firms are burning the midnight oil as we near the end of 2020, releasing their year-end notes and New Year’s forecasts, both for investor delight. There’s the obvious point: we are in a moment of rising markets and investor sentiment is high now that the elections are over and COVID vaccines have an emergency clearance and get into distribution networks. The lockdown policies have been put in place, however, fighting the virus this winter is slowing economic recovery. It remains to be seen whether the economy will really recover or not. Meanwhile, Raymond James strategist Tavis McCourt has published his view of the current situation and his comments are to be taken into account. First, McCourt notes that investors are focusing on the good news: “[The] The stock market is more focused on vaccine use and fully reopening economies in 2021, and so far negative data points have largely been pushed aside. Looking to the future, McCourt writes over the next two years: “We believe the logical outcome of 2021 (and 2022) is a likely ‘return to normal’ with strong EPS growth offset by lower P / Es unless the vaccine history changes. We expect cyclical sectors and smaller capitalization stocks to continue to outperform, as is common in early cycle markets… ”Raymond James research analysts scoured the markets for the“ right ”buys, and theirs Selection is examined more closely. They have viewed high yield dividend payers as an investment game of choice. The TipRanks database throws additional light on three of JMP’s recommendations – stocks with dividend yields of 7% or better – and which the investment firm sees 10% up or down Better.New Residential Investment (NRZ) The Real Estate Investment Trust segment ( REIT) has long been known for its high and dependable dividends, a trait encouraged by tax regulations that require these companies to return a certain portion of profits directly to investors. New York City-based New Residential Investment is typical of its sector. The company’s portfolio includes residential mortgages, mortgage loan service rights, and lending. NRZ focuses its business on the residential real estate sector. NRZ is a mid-cap company with a market value of $ 4.13 billion and a portfolio of $ 5.72 billion. The company’s sales have increased since the second quarter of 2020, after heavy losses during the “Corona recession” of the first quarter. The result for the third quarter was 19 cents per share after 54 cents in the same quarter of the previous year. But even with this loss, NRZ made sure to maintain the dividend. In fact, it did more than that. The company raised its dividend to 15 cents per common share for the third quarter to continue an interesting story. In the first quarter, the company reduced the common stock dividend to 5 cents in order to preserve the capital during the corona crisis. The company has since increased its dividend 5 cents each subsequent quarter, and the fourth quarter payment announced in mid-December is 20 cents per common share. At this rate, the dividend is annualized to 80 cents and the yield exceeds 7.87%. In addition to increasing the dividend, NRZ has announced a share buyback program totaling $ 100 million. The buyback relates to preferred shares and is in line with the existing buyback policy for common shares. Analyst Stephen Laws writes in his coverage for Raymond James on NRZ: “We expect strong origination volume and attractive profit on sales margins to come close to-term results and we continue to expect a dividend increase in the fourth quarter […] For the fourth quarter of 20, we’re increasing our core earnings estimate by $ 0.02 per share to $ 0.35 per share. For 2021, we’re increasing our core earnings estimate by $ 0.08 per share to $ 1.31 per share. “Consistent with these comments, Laws is outperforming (buying) the stock. His target price of $ 11.50 implies a year-long upward movement of 16% (To see Laws’ track record, click here.) It doesn’t come often require all analysts to agree on a stock. If this happens, take note of it. NRZ’s consensus strong buy rating is based on a unanimous 8 buy. Average for the stock is $ 11.36 Target price suggests 14% and a change from its current share price of $ 9.93. (See NRZ stock analysis on TipRanks.) Fidus Investment Corporation (FDUS) Next up is a business development company, Fidus Investment, one of many in the midsize corporate finance niche that provides debt solutions and access to capital to smaller businesses that may not be able to get credit from the larger markets. The Port Fidus’ portfolio focuses on senior secured debt and mezzanine debt for businesses valued at $ 10 million to $ 150 million. Fidus has Inv stakes in 68 companies with a total value of $ 697 million. The majority of this portfolio, 59%, is comprised of secondary bonds, with the remainder being comprised primarily of subordinated debt, primary liens and equity related securities. The company posted revenue growth in the second and third quarters of 2020 after negative results in Q1. Return on sales for the third quarter was ~ $ 21 million, an impressive 129% increase over the previous quarter. Since the third quarter, Fidus has resolved its dividend for the fourth quarter at 30 cents per common share as in the two previous quarters plus an additional special dividend of 4 cents approved by the Board of Directors. This brings the total payout for the quarter to 34 cents per common share and a yield of 9.5%. Robert Dodd, an analyst at Raymond James, likes what he sees in Fidus, especially the dividend outlook. “We continue to view the risk / return as attractive at current levels – with stocks trading below book value, solid forecast coverage of NII’s base dividend … We expect FDUS to post its 0.30 quarterly base dividend Solidly outperforms USD / share over our projection horizon. As a result, we’re projecting modest additions… ”Dodd rates the stock as Outperform (ie Buy) and sets a price target of $ 14. At the current level, this target points to an upward movement of 10.5% in the next few months. (To see Dodd’s track record, click here.) Wall Street is a little more divided on FDUS stocks, which is reflected in analysts’ consensus rating of moderate buy. This rating is based on 4 ratings including 2 buys and 2 holds. The stock is priced at $ 12.66, and the average target price of $ 13.33 suggests a modest 5% uptrend from current levels. (See FDUS stock analysis on TipRanks) TPG RE Finance Trust (TRTX) Returning to the REIT sector, let’s look at TPG RE Finance Trust, the real estate finance arm of global asset management company TPG. This REIT, with a market capitalization of $ 820 million, has built a portfolio of commercial mortgage loans totaling $ 5.5 billion. The company is a provider of original commercial mortgage loans starting at US $ 50 million, primarily in the US primary markets. Most of the company’s loans and real estate are in the east. Like many financial firms, TPG RE Finance posted significant losses in the first quarter due to the corona pandemic crisis – but has largely recovered since then. Third quarter revenue increased 9% year over year to $ 48 million. During the quarter, TPG received loan repayments totaling $ 199.6 million, a solid result. At the end of the quarter, the company had cash or cash equivalents of $ 225.6 million. The company was able to easily fund its dividend of 20 cents per common share in the third quarter. For the fourth quarter, the company recently announced not only the regular payment of 20 cents, but also a one-time special dividend of 18 cents. Taken together, the dividends give a return of 7.5%, almost four times the average for companies listed on the S&P. When we come back to Raymond James’ REIT expert Stephen Laws, we find he is optimistic about TRTX too. “TRTX has underperformed since we released our third quarter results, which we believe is an attractive buying opportunity. We anticipate that Core earnings will continue to benefit from the LIBOR minimums on loans and that new investments will resume in Q1 21. The company’s portfolio has combined retail and hotel exposure of 14%, which is below the industry average of 19% … ”To that end, Laws rates TRTX as a strong buy and its target price of $ 13 suggests an uptrend of ~ 22% in 2021. (To see Laws’ track record, click here.) This stock also has a strong buy rating from analyst consensus based on 3 unanimous buy ratings set in the past few weeks. The price of the stock is at $ 10.67, and the average target of $ 11.00 suggests a modest 3% upside move from current levels. (See TRTX stock analysis on 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 TipRanks’ stock insights. Disclaimer: The opinions expressed in this article are solely those of the presented analysts. 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.