Raymond James: Buy 2 Big 7% Dividend Stocks Now
Looking at the main opportunity watchdog markets, Raymond James strategist Tavis McCourt looks at both risk and opportunity in current market conditions. The opportunity, in his opinion, stems from obvious factors: Democrats won both Georgia Senate seats in the recent by-election, giving majority support to the incoming Biden administration in both houses of Congress – and signing on, increasing the odds of meaningful fiscal support . Law in the near term. More importantly, the coronavirus vaccination program is moving forward, and reports are showing that one of two approved in the US is effective against Pfizer’s new strain of the virus. A successful vaccination program will accelerate economic reform, allowing states to loosen lockdown regulations – and get people back to work. The risks are also coming from the political and public health sector. House Democrats have passed impeachment articles against President Trump despite the imminent natural closure of his post, and this passage reduces the possibility of political reconciliation in a heavily polarized environment. And even when COVID strains are matched by current vaccines, there is a risk that a new strain will develop that is not covered by existing vaccines – which could resume a cycle of lockdown and economic decline. Another risk McCourt sees, beyond those two, will be a sharp rise in inflation. He does not make a waiver, but it is unlikely to happen soon. “… product / service inflation is really only a possibility, to reopen, so the market seems a bit bullet-proof in the very near term, and thus the continued rally, with the des GAs winning the race as well as excitement in flames Adding fuel, etc. ” “McCourt noted. Some of McCourt’s partners among the Raymond James analyst cadre are taking these risks into consideration, and placing their dividends on strong dividend shares. We have seen in recent calls from Raymond James, and using the TipRanks database, we have selected two stocks with high-yield dividends. These buy-rated tickers bring a dividend yield of 7%, a strong attraction for investors interested in using the current good times to install a defensive firewall should materialize the risks. Enterprise Products Partners (EPD) We will start in the energy sector, which has long been known for both high cash flows and high dividends. Enterprise Products Partners is a midstream company, part of a network that moves hydrocarbon products from wellheads to storage farms, refineries, and distribution points. The enterprise controls 50,000 miles of pipelines, shipping terminals along the Gulf Coast of Texas and storage facilities for 160 million barrels of oil and 14 billion cubic feet of natural gas. The company was hurt by low prices and low demand in 1H20, but partially recovered in the second half. Revenue changed, increasing 27% sequentially to $ 6.9 billion in Q3. The number was down year-over-year, slipping 5.4%, but fell more than 6% above the Q3 forecast. Q3 earnings, at 48 cents per share, were only under forecast, but were up 4% year-over-year and 2% sequentially. EPD recently announced its 4Q20 dividend distribution at 45 cents per ordinary share. This is above the previous payment of 44 cents, and marks the first increase in two years. At $ 1.80 annually, payment is 7.9% received. Among the bulls is Raymond James’ Justin Jenkins, who gives EPD a strong buy rate. The analyst gives the stock a target of $ 26 price, which implies 15% above current levels. (To see Jenkins’ track record, click here) Supporting his sharp stance, Jenkins stated, “In our view, the unique combination of EPD’s integration, balance sheet strength, and ROIC track record is the best in class.” Lasts. We see EPD at arguably the best position. To face the volatile scenario … With EPD’s footprint, demand increases, project growth, and contracted ramps supply headwinds and lower y / y marketing results. Should be greater than… ”This is not often the case that analysts agree on all stocks, so pay attention when it does. EPD’s Strong Buy consensus rating is based on a unanimous 9 buyers. The stock has a $ 24.63 average price target of 9% above its current share price of $ 22.65. (See EPD Stock Analysis on TipRank) AT&T, Inc. (T) AT&T is one of the instantly recognized stocks in the market. The company is a longtime member of the S&P 500, and has a reputation as one of the best dividend payers on the stock market. AT&T is a true large-cap industry giant with a market cap of $ 208 billion and the largest network of mobile and landline phone services in the US. The acquisition of TimeWarner (now WarnerMedia) in the process that ran between 2016 and 2018 gave the company a large stake in the mobile content streaming business. AT&T saw a decline in revenue and income under pressure from the Corona epidemic in 2020 – but the decline was slight, as the same epidemic also placed a premium on telecommunications and networking systems, which supported AT & T’s business. Revenue was $ 42.3 billion in 3Q20, down 5% from the year-ago quarter. On positive notes, free cash flow increased from $ 11.4 billion to $ 12.1 billion, and the company recorded a net profit of 5.5 million customers. The growth of subscribers was driven by the new 5G network rollout – and premium content services. The company maintained its reputation as a dividend winner, and in February 2021 announced its most recent dividend to be paid. Payments are 52% at the normal level, fifth in a row at current levels and yearly for $ 2.08, a yield of 7.2%. For comparison, the average dividend among peer companies in the tech sector is only 0.9%. AT&T has kept its dividend strong for the last 12 years. Raymond James analyst Frank Lothan sees AT&T as a classic defensive value stock, and describes the T’s current position as bad news. “[We] There is a belief that there may be more during the next 12 months than worse for AT&T. Throw in the fact that the shares are overshadowed, and we believe this is a recipe for reversal. Large cap value names are hard to come by, and we feel that investors who can wait a few months while locking in 7-month yields should be rewarded for buying AT&T at current levels. According to these comments, Lothan rated T an outperform (ie buy), and his $ 32 price target means a 10% increase from current levels. (To see Lothan’s track record, click here) What do the rest of the Street think? Given the consensus breakdown, the opinions of other analysts are more dispersed. 7 Buy rating, 6 Hall and 2 Sale add to a Moderate Buy Consensus. In addition, the $ 31.54 average price target indicates ~ 9% upside potential. (See AT&T 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: The opinions expressed in this article are solely 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.