3 ‘Strong Buy’ stocks with dividend yields of 8% or better
What to make of the markets lately? A sharp drop in peak values occurred in early September, but from the eighth of the month – for the past three weeks – volatility has ruled the day. All major indices are bouncing up and down without showing a clear trend. While the increased volatility is almost certainly going to stay with us for a while, it is time to consider defensive stocks. And this will bring us to the dividend. By providing a steady income stream, whatever the market situation, a reliable dividend stock provides a pad for your investment portfolio when the stock stops appreciating. Keeping this in mind, we have used the Tiprank database to pull three dividend shares at 8% or more. Although they do not offer all. Each of these stocks has a strong buy rating, and considerable reversal potential. Solar Senior Capital (SUNS) is the first stock Solar Senior Capital, an investment management company focused on externally managed non-diversified portfolios. SUNS invests in mid-market companies, holding positions in Unitresh Instruments, Secured Loans and First and Second Lien Loans. The company’s investment targets are mid-market firms with a below-investment grade credit rating, and its portfolio is valued at $ 532.4 million. Soller’s earnings, until 1Q20, held steady at 35 cents per share – but it took a sudden dive. The second quarter this year, coming in at 32 cents. The decline also came after the company reported a solid financial base with net assets of $ 249 million and available capital of more than $ 210 million. Despite lower income, the quarterly results were sufficient to maintain dividends. It is paid monthly at a rate of 10 cents per month, which makes the quarterly distribution 30 cents. This leads to a higher payout ratio, but the dividend is sustainable at the current earnings level. An annual payout of $ 1.20 gives a yield of 9.4%, which is 4.5 times higher than the average dividend yield found among S&P index members. The company has reliably paid dividends since 2011, no matter the market conditions. To acquire this share for Ladenburg, analyst Mickey Schlein bought SUNS by the $ 15 price target. This target is 18% upside for the coming year. (To see Schlein’s track record, click here) Supporting his stance, Schlein wrote, “… the company’s pipeline is growing, with more compelling opportunities at higher yields. The SUNS incentive management fee is running within the catch-up band, and the external manager continues to waive the fee until 2020 to the extent necessary for NII to cover the dividend. “Strong Buy Analyst’s consensus rating on SUNS is unanimous based on 3 buy reviews. The stock’s $ 12.68 trading price and $ 15.67 average price target give a one-year high potential of 24%. (See SUNS stock analysis on TipRanks) Barings BDC, Inc. (BBDC) Barings, the next stock on our list, is a business development corporation. The company provides capital-access and asset management to its clients, mid-market companies that seek financing solutions. Barings Loans , Invests in equities, and fixed income assets, and claims $ 346 billion in total assets under management. Hilling Barings worked hard for revenue in the first quarter as the Corona crisis gained momentum, the company said. The top line has seen positive numbers return in the second quarter. At $ 56 million, Q2 revenue was also 4 times higher than results in the second half of 2019. Earnings have been stable, with EPS up 14 and 16 cents from the previous 7. Reported for quarters. Another sign of strength, Barings MVC Capital in August Completed an agreement to achieve. The deal, which totals $ 177.5 million in cash and stock, is expected to close in 4Q20 and will form a company worth more than $ 1.2 billion with an investment company. BBDC continues to reward shareholders as the move progresses. The company has been gradually increasing its quarterly dividend payment for the last two years. The current payout is 16 cents per ordinary share, with an annual payout of 64 cents and a strong yield of 8%. Raymond James analyst Robert Dodd notes the importance of MVC transactions for BBBCDC: “… we expect BBDC to recognize a top. On-line income contributor ‘accretion of purchase rebate’ over the life of the MVC portfolio. “This will have a positive impact on the dividend,” Dodd said, writing, “We are forecasting dividend growth after the MVC acquisition draws to a close. We believe the dividend will increase from the current $ 0.16 / per quarter to $. 0.17 / share can be traded in 1Q21. While we believe the earning power will exceed that level, over-coverage in our view is a good thing – and we believe 90% payout Estimating the ratio is prudent. “Dodd’s comments bounced back his rating on the stock. He gives Barings a $ 9.50 price target, indicating room for a 19% increase over the next 12 months. (Dodd To see a track record of (click here) Overall, Barings’ Strong Buy consensus rating is held by 3 recent buyers against a single hold. The company has an average price target of $ 9, which is $ 8.01. 12.5% higher than the trading price. (See BBDC Stock Analysis at TBDRC) Triplepoint Venture Growth (TPVG) The last stock on our list is not another management Is a foreign company. Triplepoint Venture is a venture capital investment firm with a focus on technology and life sciences. These are high-growth industries that collect cash – but also offer promises of high returns. Cryptopoint’s earnings are falling from their peak this year, at 45 cents per share in last year’s Q4, with revenue also recovered as Corona. Losses in the first quarter. For the second quarter, the top line peaked at $ 23 million, while EPS fell 7% to 38 cents. Although earnings are low, they beat the forecast by 5.5%. However, the company’s dividend payout has been remarkably stable over the years. The dividend has been paid consistently at 36 cents per quarter per ordinary share, excluding a downward blip in December 2018. This gives an annual payout of $ 1.44, and a powerful yield of 12.8%. High yield, combined with a reliable payment history, makes this dividend valuable, especially in times of no-zero interest rate policy. Chrysstofer York, a 4-star analyst with JMP Securities, believes the most recent second-quarter results are an outperform (rating (buy) on TPVG, and its $ 13 price target is 16%. (See York’s track record) (Click here)) Supporting his view, York writes, “TPVG remains our preferred BDC idea for those who trade below $ 500mln in market cap; we are yielding yields and Value investors find the stock particularly attractive for both […] We believe that TriplePoint’s core dividend run-rate is sustainable until $ 0.36 2021 and note that the total return required in incentive fees should provide additional support to coverage from any future credit losses. “Overall, Wall Street analysts have nothing. Speed over TPVG in last three months. Of the 5 analysts covering the stock, all 5 are bullish. Meanwhile, their average price target of $ 13.30 is 19% above current levels. (See TriplePop’s stock analysis at TipRanks) To find good ideas for dividend stock trading at attractive valuations, buy TipRank’s Best Stocks, a newly launched tool that equips all of TipRanks’ equity insights. Unites the disclaimer: The opinions expressed in this article are only those of select analysts. Content is to be used for informational purposes only. It is very important to do your own analysis before making any investment.