Actionable Conclusions (1-10): Analysts Predicted Top Ten MoPay Equities to Net 12.44% to 108.3% Gains By January 2020
Four of the ten top-yield MoPay stocks (shaded in the chart above) were verified as being among the Top ten gainers for the coming year based on analyst one-year target prices. Thus, the yield-based strategy for this MoPay group as graded by analyst estimates for this month proved 40% accurate.
Projections based on estimated dividend amounts from $1,000 invested in each of the ten highest yielding stocks and the one-year analyst median target prices for those stocks, as reported by YCharts, made the data points. Note: one-year target prices from one analyst were not applied (n/a). Ten probable profit-generating trades to 2020 were:
AT&T (T) shares have declined substantially over the past two years. A fair amount of this decline is related to the extended acquisition of the Time Warner, as well as concerns over cable and especially satellite subscriber losses, among other matters. The company recently raised its dividend and is now paying a devilishly high dividend of around 6.66 percent. Also, AT&T is expected to launch a Time Warner branded streaming video service in 2019. AT&T’s sizable payout and content were both out of favor last year, but premium content and yield are likely to be more desirable in the next year.
The new AT&T is performing well
AT&T last reported consolidated revenues for the third quarter of 2018 of $45.7 billion versus $39.7 billion the prior year.... more
Companies going through challenging times often see their stock prices fall, which at times can create buying opportunities. Deep-value stocks can produce high returns for shareholders, if their turnarounds ultimately succeed. For example, Hanesbrands (HBI) is in the middle of a lengthy turnaround, and the stock has lost nearly 40% of its value in the past 12 months.
There is potential for Hanesbrands stock to deliver strong returns over the next several years, as the declining share price has pushed its valuation down to attractive levels. Hanesbrands also has a high dividend yield of 4.3%, and there is evidence the turnaround is materializing. Overall, we view Hanesbrands as a cheap dividend stock with an attractive yield.
Hanesbrands is a leading marketer... more
Source: Philip Morris International Media Center
When examining the historical performance of stocks, I have noticed that many market beating stocks of the past 25 or 50+ years have returned made it an objective to return capital to shareholders in the form of dividends and share buybacks.
It's this aggressive return of capital to shareholders, combined with near perennial low or reasonable valuations, and solid mid to high single digit earnings growth over the long term that has led to the tobacco industry being the most lucrative industry to invest in for over a century. For instance, from 1900 to 2010, $1 invested in the tobacco industry would have grown to $6.3 million. As the Motley Fool article goes on to mention, it's the disgust that many investors harbor towards... more
The purpose of this article is twofold: (1) share a summary of an educational piece I wrote for Institutional Income Plus subscribers on the key aspects of evaluating preferred shares and (2) demonstrate the process on an actual issuance that I own and currently recommend. While detailed, this overview will not and cannot encompass every possible situation as preferreds can be underwritten with an effectively unlimited range of characteristics. I will be following up shortly with two additional preferred share recommendations. Remember: understanding what makes a stock/opportunity attractive is more valuable than a single recommendation. Today, you receive both! Thank you for reading.
Jernigan Capital (JCAP) is a commercial mortgage REIT combined... more
Xperi (Nasdaq: XPER) is a company that owns and develops intellectual property ('IP') that it monetizes by entering into licensing agreements with clients that deploy the technology in end products (e.g. semi-conductors, mobile phones, cars). It is structurally undervalued having a ~13% free cash flow ('FCF') yield that is expected to grow on the back of (i) annual growth of operating cash flow ('OCF') of 11-19% in the coming 4 years from growth in client end markets, (ii) expected lower litigation fees going forward, and (iii) untapped potential to generate operating synergies.
I have a $34 target for the XPER share price in the coming 12-18 months on the back of applying a fair value 8% FCF yield to the 2018E $132m FCF (which is expected... more
GD Stock: Another Top Dividend Stock
In the stock market, there’s an elite group of dividend-paying companies known as the S&P 500 Dividend Aristocrats. To become a Dividend Aristocrat, a company must be a member of the S&P 500 Index and must have increased its dividend every year for at least 25 years.
A quarter of a century of consecutive annual dividend hikes is not easy to pull off. If a company is a Dividend Aristocrat right now, it means it managed to raise its dividend every year, including through the dot-com crash, the early 2000s recession, and the Great Recession from 2007 to 2009.
Unsurprisingly, dividend investors like these stocks. If a company can raise its payout during economic downturns, chances are it will keep doing so when things get better.... more
Since hitting a low of $2,346.58 on December 27th, the S&P 500 has rallied 8.5%. The combination of “buy the dip” due to the market vastly being oversold and the so-called “Santa Claus rally” has breathed new life into what has been a shaky market of late. Though we are not in the clear by any means, recent news has been positive. We got a good jobs report last Friday, followed by “reported” progress made in the trade talks with China. As we predicted in recent articles, we still believe a trade deal will be made by the end of Q1 this year. It’s really just a feeling, or maybe wishful thinking at this point, but we are going to stick with it.
Now, with the intense sell-off we experienced last month, many great dividend stocks became a lot... more
The opportunities in closed-end funds over the last few months caught the eye of many investors. Most of these products are designed to provide a steady stream of income, usually on a monthly or quarterly basis, as opposed to the biannual payments provided by individual bonds. And this feature continues to attract market participants even when the overall market looks unstable.
In spite of CEFs being mostly of interest to income investors, we have found our path to approach them as active traders and we are constantly monitoring them. As a testament to this, you will be kept up to date with Weekly Reviews such as the one below.
Over the past year, we have not seen a strong performance by the iShares iBoxx $ High Yield Corporate Bond ETF (HYG) on... more
Co-produced with Philip Mause and PendragonY for High Dividend Opportunities.
Apollo Global Management (APO) is a limited partnership (with K-1 filing requirements) which is a leader in the asset management space. APO closed recently at $ 26.30; its most recent quarterly distribution is 48 cents for an annualized yield of 6.8%. APO posted solid third-quarter numbers but has traded down lately and has not recovered. This may be partially due to a difficult year-over-year comparison with last year’s third quarter in which large performance fees were earned.
APO had net income of 77 cents a share in Q3 and fee-related earnings of 48 cents with distributable earnings of 55 cents. Fee-related earnings were actually up year over year from $162.2 million to $197.1 million. But, as... more