3 top dividend stocks with growth opportunity; Goldman said ‘buy’
Investing is all about finding profits, and investors have long looked for two main paths toward that goal. Growth stocks, equities that will give returns primarily based on share price appreciation, are one route. The second route is through dividend shares. These are shares that pay back a percentage of the profits back to shareholders – a dividend, usually sent quarterly. Payments vary widely, from less than 1% to more than 10%, but the average among stocks listed on the S&P 500, is around 2%. Dividends are a good addition for a patient investor, as they provide a steady income stream. Goldman Sachs analyst Caitlyn Burrows appears in the real estate trust segment, a group of stocks long known for dividends that are both high and reliable – and she is particularly keen to expect strong growth in three stocks Sees a lot of reasons. Upon running the trio through TipRanks’ database, we find out that the trio has also been appeased by the rest of the Street, as they boast a “Strong Buy” analyst consensus. Broadstone Net Lease (BNL) First, Broadstone Net Lease, is an established REIT that went public in this IPO last September, exceeding $ 533 million. The company went on to market 33.5 million shares, followed by the underwriters of over 5 million. It was considered a successful opening, and BNL now boasts a market cap of over $ 2.63 billion. Broadstone’s portfolio consists of 628 properties in 41 US states and the Canadian province of British Columbia. These properties host 182 tenants and are worth a total of $ 4 billion. The best feature here is the long term nature of the leases – the weighted average remaining lease is 10.8 years. During the third quarter, BNL reported net income of $ 9.7 million, or 8 cents per share, with the most recent full financial available. Income was primarily from rent, and the company reported collecting 97.9% of rents during the quarter. Looking ahead, the company expects $ 100.3 million in property acquisitions during Q4, and an increased rent collection rate of 98.8%. Broadstone’s earnings and high rent collections are supporting a dividend of 25 cents per share, or $ 1 per year. This is a cheaper payment for the company, and offers 5.5% to investors. Goldman’s bursa sees the company’s takeover as the most important factor. “Comprehensive acquisitions are the major revenue drivers for Broadstone … while management halted the acquisition following COVID-induced market uncertainty (BNL has not completed any acquisitions in 1H20) and ahead of its IPO, we are confident that 2021 Acquisitions will accelerate, and we see it begin with 4Q20 activity … We estimate that BNL achieves a positive investment of 1.8%, making every $ 100m acquisition (or 4.2% on our 20% takeover acquisition) 0.8% earnings growth (at 2021E FFO) for. Burrows Opposite. To this end, BROL rates as a buy, and its $ 23 price target is upside down ~ 27% for the coming year. . (To see Burrow’s track record, click here) Wall Street generally agrees with Burstons with Bursts. 3 positive reviews suggest stock has declined in recent weeks. These are the only reviews on file. , Giving the analyst consensus a strong Strong rating. Currently the stock price is $ 18.16, and the average price target of $ 21.33 is. ests above 17% a year. (See BNL Stock Analysis on TNRank) Realty Income Corporation (O) is a major player in the realty income REIT sector. The company has a portfolio of over $ 20 billion, with over 6,500 properties located in 49, Puerto Rico and the UK. Annual revenue exceeded $ 1.48 billion in fiscal year 2019 (final with full figures), and kept monthly dividends for 12 years. Looking at the current figures, we find that O made 7 cents per share in 3Q20 with $ 403 million in total income. The company collected 93.1% of its contracted rent in the quarter. While relatively low, a drill-down for monthly prices indicates that rent collection rates have been increasing since July. O has paid monthly dividends, as noted, and has done regularly since listing publicly in 1994. The company increased its payments in September 2020, marking the 108th increase during that time. The current payout is 23.45 cents per ordinary share, which is annualized for $ 2.81 cents – and yields 4.7%. Based on the above, Burse placed this stock on its US Convention list, with a Buy rating and a $ 79 price target for the next 12 months. This target is 32% above current levels. Supporting her stance, Bursey stated, “We forecast a 5.3% FFO increase per year on 2020E-2022E, which is 3.1% average for full REIT coverage. We expect to be among the major income drivers acquired. Continued improvement in volume and a gradual improvement in theater rents (in 2022) will be included. “The analyst said,” We believe O acquires $ 2.8 billion in consensus in each of 2021 and 2022. $ 2.3 Billion. [We] We believe the perception of our acquisition volume to be really conservative, eight days into 2021, the company has already agreed to make $ 807.5 million (or 29% of our estimate for 2021) of the acquisition. “Overall, Wall Street Takes. Booming Stance on Realty Income Shares. The 5 buys and 1 hold issued in the last three months made the stock a strong buy. Meanwhile, the average price target of $ 69.80 is the current share price. Se ~ 17% is upside down. (See O Stock Analysis) TipRanks) Essential Properties Realty Trust (EPRT), Essential Properties, Ultimate Properties, owns and manages a portfolio of single-tenant commercial properties across the US. Ash has 214 tenants in more than 1000 properties across 16 industries, including convenience stores. Medical services and restaurants. Essential Properties boasts a high occupancy rate of 99.4% for its properties. In 3Q20, the company recorded a year-on-year of 18.2 % Revenue growth, reaching $ 42.9 million. Closed the quarter with an impressive $ 589.4 million in available liquidity, including cash, cash equivalents and available credit. The company had considerable confidence due to strong cash positions and rising revenue. That it will raise dividends to go into Q4. The new dividend payout is 24 cents per ordinary share, compared to the previous payment 4.3% higher than. The current rate is up to 96 cents yearly, and yields 4.6%. The company has been increasing its dividend regularly for the last two years. In his review for Goldman, Burrows focused on the recovery that essential qualities have made since the height of the COVID panic last year. “When the mandate of the mandates came into effect in early 2020, only 71% of EPRT assets were open (wholly or on a limited basis). This situation has improved over the intervening months and is now closed with just 1% of EPRT’s portfolio … We expect EPRT’s future earnings growth will be driven by acquisitions and 2.8% potential earnings growth from $ 100 acquisitions Estimates, “Burrows wrote. Consistent with his optimistic outlook, Burrows buys EPRT shares, with a $ 26 one-year price target, suggesting a 27% upside. All in all, 9 recent in EPRT There are analyst reviews, and a breakdown of 8 Buys and 1 Sell gives the stock a strong Buy consensus rating. The shares have a price target of $ 20.46 and an average price target of $ 22.89, a potential upside of ~ 12% from current levels. ( See EPRT Stock Analysis at TipRank) To find good ideas for dividend stock trading at attractive valuations, buy from TipRank’s Best Stocks, a newly launched tool that unites the equity insights of all Tipunkers. Disclaimer: In this article Opinions expressed are solely those of select analysts. Use of material for informational purposes only It has to be done. It is very important to do your own analysis before making any investment.