TipRanks
If the stock markets ups and downs this year have taught us any enduring lesson, its a repeat of an old stand-by: the importance of setting up a steady income stream, to keep the portfolio profitable no matter how the individual shares move. Dividends are a key part of any investment income strategy, giving investors a reliable income when its needed most.All dividends are not created equal, however. Investors should seek out companies with one of two advantage or preferably both: a commitment to maintaining the dividend, and a high yield. The second is not hard to find, considering the Federal Reserves policy of keeping interest rates near zero, while the first attribute may take some research.With all of that in mind, weve opened up the Stock Screener tool from TipRanks, a company that tracks and measures the performance of analysts, to find stocks with high dividend yields. Setting the screener filters to show stocks with "strong buy" consensus rating and a high dividend yields exceeding 9% gave us a manageable list of stocks. Weve picked three to focus on.New Mountain Finance Corporation (NMFC)The first stock on the list is New Mountain Finance, in the business development niche. New Mountain invests in debt securities, including first and second lien notes and mezzanine securities. The Company's portfolio includes public and private equity and credit funds with a total worth well north of $28 billion.The company reported 30 cents per share in net investment income for the second quarter, down 4 cents sequentially. At the top line, revenues came in at $76 million, a healthy turnaround from the first quarter revenue loss of $174 million. As far as the data can show, New Mountain has turned around from the coronavirus losses incurred early in the year.New Mountain kept its dividend payment stable in the second quarter, at 30 cents per common share. At the current level, the $1.20 annualized payout gives a high yield of 11.5%.Wells Fargo analyst Finian OShea is comfortable with NMFCs dividend policy, writing, Having reduced its $0.34 dividend to $0.30 last quarter, coverage appears solid after the BDC has sustained its impact from nonaccruals, de-leveraging and LIBOROShea believes NMFC shares have room to rise, noting: "NMFC trades at 0.82x, about in-line with the WFBDC Index despite its history of top-quartile returns, improved leverage profile and portfolio level performance so far through todays recessionary environment."To this end, OShea rates NMFC an Overweight (i.e. Buy), and his $11.25 price target suggests it has a nearly 14% upside potential for the coming year. (To watch OSheas track record, click here)Overall, the Wall Street consensus on NMFC is a Strong Buy, based on 4 reviews including 3 Buys and 1 Hold. The shares are selling for $9.88, and the average price target of $10.92 implies a one-year upside of 11% for the stock. (See NMFC stock analysis on TipRanks)Plains GP Holdings (PAGP)Next on our list, Plains GP, is a holding company in the oil and gas midstream sector. Plains assets move oil and gas products from the well heads to the storage facilities, refineries, and transport hubs. The companys operations move more than 6 million barrels of oil equivalent daily, in a network extending to the Texas oil patch and the Gulf Coast. Plains also has assets in California and the Appalachian natural gas fields.The crisis in the first half of this year put heavy pressure on Plains revenue and earnings. By Q2, revenue was down by two-thirds, to $3.2 billion, and EPS had fallen to just 9 cents. As part of its response, Plains slashed its dividend by half from 36 cents per common share to 18 cents. The cut was made to keep the dividend within the distributable cash flow, affordable for the company and kept up for shareholders. Looking at numbers, PAGP's dividend payment offers investors a yield of 11.7%, almost 6x higher than the average yield among S&P 500-listed companies.Tristan Richardson, covering the stock for Truist, sees Plains in a good spot at present. Noting the difficulties faced earlier in the year, he writes, Despite cautious notes on recovery and general industry commentary that reflects the tepid growth environment, Plains remains among best positioned, in our view, amongst volumetrically sensitive business as a dominant Permian operator We believe the units/shares should find some support over the near term on the inflection to positive free cash flow and gradual de-levering.Richardson gives this stock a Buy rating and $12 price target, indicating an impressive potential upside of 80% for the next 12 months. (To watch Richardsons track record, click here)The Strong Buy analyst consensus rating on PAGP is unanimous, based on 5 recent reviews, all Buys. The stock has an average price target of $11, implying an upside of 65% from the current share price of $6.82. (See PAGP stock analysis on TipRanks)Sixth Street Specialty Lending (TSLX)The last company on our list recently underwent a name change; in June, it dropped its old name TPG in favor of Sixth Street. The ticker and stock history remain the same, however, so the difference for investors is in the letterhead. Sixth Street continues the core business of providing credit and capital for mid-market companies, helping to fund Americas small and medium enterprise niche.The economic difficulties of the corona crisis were easily visible in this companys top line. Revenue was negative in Q1, due to a curtailment in loan collections and reduction in interest income, although earnings remained positive. In Q2, EPS rose to 59 cents per share, meeting the forecast, and revenues returned to positive numbers, at $103 million.Sixth Street adjusted its dividend during the crisis, but that move did not raise any eyebrows. The company has a long history of dividend payment adjustments, regularly making changes to the common stock dividend in order to keep it in line with earnings, and giving supplemental dividends when possible. The current regular payment is set at 41 cents, annualizing to $1.64, and giving a strong yield of 9.45%.JMP analyst Christopher York believes that Sixth Street has as solid position in its niche, noting, we think the company has historically proven, and subsequently earned investor trust and credibility to underwrite and structure complex and special situation investments to achieve attractive risk-adjusted returns.Regarding the dividend, York is optimistic about the future, writing, [The] supplemental dividend is likely to return following two quarters of no distributions as a result of the mechanics of the supplemental dividend frameworkIn line with his positive outlook for the company, York rates the stock as Outperform (i.e. Buy), and his $20 price target indicates confidence in a 15% upside potential. (To watch Yorks track record, click here)This stock has another unanimous Strong Buy consensus rating, with 5 recent Buy reviews. The stocks current share price is $17.33 and the average price target of $19.30 suggests it has room for 11% share price growth ahead of it. (See TSLX stock analysis on TipRanks)To find good ideas for dividend stocks trading at attractive valuations, visit TipRanks Best Stocks to Buy, a newly launched tool that unites all of TipRanks equity insights.Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
More here:
Big Tech's $5 Trillion Reckoning Has to Start Somewhere - Yahoo Finance
- Stocks Close Higher With Amazon and Netflix Making Big Gains - Barron's [Last Updated On: July 8th, 2020] [Originally Added On: July 8th, 2020]
- Samsung needs a splashy product for its splashy product launch - The Verge [Last Updated On: July 8th, 2020] [Originally Added On: July 8th, 2020]
- Big Tech's Washington hearing will be a spectacle for the ages - Financial Post [Last Updated On: July 8th, 2020] [Originally Added On: July 8th, 2020]
- Dow gains more than 400 points after big tech rally, Amazon and Netflix hit records - CNBC [Last Updated On: July 8th, 2020] [Originally Added On: July 8th, 2020]
- Here Come the 4 Horsemen of the Techopolypse - The New York Times [Last Updated On: July 8th, 2020] [Originally Added On: July 8th, 2020]
- New records show 5,000+ contracts between big tech and the Pentagon - Business Insider - Business Insider [Last Updated On: July 8th, 2020] [Originally Added On: July 8th, 2020]
- Stock market rising on the indispensable companies - Minneapolis Star Tribune [Last Updated On: July 12th, 2020] [Originally Added On: July 12th, 2020]
- Tech Stocks Have Been the Markets Stars. Are They Overbought? - Barron's [Last Updated On: July 12th, 2020] [Originally Added On: July 12th, 2020]
- Tech Stocks Are Getting Scary. Why Theres No Way to Escape Them. - Barron's [Last Updated On: July 12th, 2020] [Originally Added On: July 12th, 2020]
- Big Tech companies have got universities in their sights - Telegraph.co.uk [Last Updated On: July 12th, 2020] [Originally Added On: July 12th, 2020]
- The National Research Cloud: Big Tech And Academic Research - Seeking Alpha [Last Updated On: July 12th, 2020] [Originally Added On: July 12th, 2020]
- Nasdaq At Record as Investors Bet on Big Tech to Weather Virus Storm; Dow Falls - Yahoo Finance [Last Updated On: July 12th, 2020] [Originally Added On: July 12th, 2020]
- Big Tech saved the day. We still dont trust them. - BetaBoston [Last Updated On: July 12th, 2020] [Originally Added On: July 12th, 2020]
- Big tech, even bigger heart, provides shields to Hatzalah - The Riverdale Press [Last Updated On: July 12th, 2020] [Originally Added On: July 12th, 2020]
- Cramer's earnings watch: 'If the banks get hammered, things could get ugly' - CNBC [Last Updated On: July 13th, 2020] [Originally Added On: July 13th, 2020]
- Big Tech joins fight against Trump's restrictions on international students - The Logic [Last Updated On: July 13th, 2020] [Originally Added On: July 13th, 2020]
- Pittsburgh Big tech companies are flocking to Pittsburgh. The foundation was laid over decades - Technical.ly Pittsburgh - Technical.ly [Last Updated On: July 13th, 2020] [Originally Added On: July 13th, 2020]
- Ask the Rational Investor: Is big tech too large? - Massillon Independent [Last Updated On: July 13th, 2020] [Originally Added On: July 13th, 2020]
- Big Tech went from growth stocks to Wall Street's Treasury bond substitute during the coronavirus - CNBC [Last Updated On: July 13th, 2020] [Originally Added On: July 13th, 2020]
- Thousands of contracts highlight quiet ties between Big Tech and U.S. military - NBC News [Last Updated On: July 13th, 2020] [Originally Added On: July 13th, 2020]
- The Information's Takeover Target List - The Information [Last Updated On: July 18th, 2020] [Originally Added On: July 18th, 2020]
- The Tension Between Competition and Tech Are Gaining Global Attention - JD Supra [Last Updated On: July 18th, 2020] [Originally Added On: July 18th, 2020]
- Cloudflare DNS goes down, taking a large piece of the internet with it - TechCrunch [Last Updated On: July 19th, 2020] [Originally Added On: July 19th, 2020]
- As the Revolving Door Swings - The American Prospect [Last Updated On: July 19th, 2020] [Originally Added On: July 19th, 2020]
- Big Tech is Poised to Pounce on Banking - Global Banking And Finance Review [Last Updated On: July 19th, 2020] [Originally Added On: July 19th, 2020]
- The Biggest Problem With Investing in Teladoc - The Motley Fool [Last Updated On: July 19th, 2020] [Originally Added On: July 19th, 2020]
- How Palantir and Peter Thiel might lead the biggest tech IPO of the year - Vox.com [Last Updated On: July 19th, 2020] [Originally Added On: July 19th, 2020]
- Here's what happened to the stock market on Monday - CNBC [Last Updated On: July 19th, 2020] [Originally Added On: July 19th, 2020]
- 'Big Tech' Pullback Explains Why Bitcoin Rally Has Paused in Q3 | NewsBTC - newsBTC [Last Updated On: July 19th, 2020] [Originally Added On: July 19th, 2020]
- Advertiser alliance, media companies, and Big Tech to collude and create a definition of hate speech - Reclaim The Net [Last Updated On: July 19th, 2020] [Originally Added On: July 19th, 2020]
- Congress has the legal power to investigate Silicon Valley. Let's make it count - The Guardian [Last Updated On: July 19th, 2020] [Originally Added On: July 19th, 2020]
- The Problem with Big Ideas (and Some Ramblings on Virtual Desktops & Tech's Blurred Lines) - www.waterstechnology.com [Last Updated On: July 19th, 2020] [Originally Added On: July 19th, 2020]
- Here are all the battlefronts TikTok is currently fighting on - KTVZ [Last Updated On: July 19th, 2020] [Originally Added On: July 19th, 2020]
- Exxon has topped North Texas' biggest-companies list for 3 decades. Now there's a challenger to the throne - The Dallas Morning News [Last Updated On: July 19th, 2020] [Originally Added On: July 19th, 2020]
- G20 Finance Officials Eye Solution to Digital Tax Row This Year - The New York Times [Last Updated On: July 19th, 2020] [Originally Added On: July 19th, 2020]
- Earnings and fiscal debate could be catalysts for stocks in the week ahead - CNBC [Last Updated On: July 19th, 2020] [Originally Added On: July 19th, 2020]
- Big Tech firms back suing Trump administration over rule that could drive out foreign students - Axios [Last Updated On: July 19th, 2020] [Originally Added On: July 19th, 2020]
- Big Techs latest reckoning is coming as it continues to rack up record valuations - MarketWatch [Last Updated On: July 19th, 2020] [Originally Added On: July 19th, 2020]
- Here's a new reason to invest in Europe - WICZ [Last Updated On: July 21st, 2020] [Originally Added On: July 21st, 2020]
- Recovery from Covid-19 will be threatened if we don't learn to control big tech - The Guardian [Last Updated On: July 21st, 2020] [Originally Added On: July 21st, 2020]
- Tech watchdog calls on Facebook Oversight Board members to demand real power or resign - TechCrunch [Last Updated On: July 21st, 2020] [Originally Added On: July 21st, 2020]
- Roku Is A Strong Gatekeeper In Streaming, But Could Be Crushed By Big Tech Analyst - Deadline [Last Updated On: July 22nd, 2020] [Originally Added On: July 22nd, 2020]
- The Conservative Inc. to Big Tech Pipeline - The American Conservative [Last Updated On: July 22nd, 2020] [Originally Added On: July 22nd, 2020]
- Are Facebook and Alexa really listening? 6 common tech myths debunked - USA TODAY [Last Updated On: July 23rd, 2020] [Originally Added On: July 23rd, 2020]
- New Emails Reveal Warm Relationship Between Kamala Harris And Big Tech - HuffPost [Last Updated On: July 23rd, 2020] [Originally Added On: July 23rd, 2020]
- Amazon-led rally boosts Jeff Bezos and Big tech"s billionaire boys - Proactive Investors USA & Canada [Last Updated On: July 23rd, 2020] [Originally Added On: July 23rd, 2020]
- Twitter CEO Jack Dorsey Invited To Testify In Congressional Big Tech Hearing - The Federalist [Last Updated On: July 23rd, 2020] [Originally Added On: July 23rd, 2020]
- EU-wide digital tax on big tech touted as best resource - EURACTIV [Last Updated On: July 24th, 2020] [Originally Added On: July 24th, 2020]
- Cramer says this tech stock rally is not like 1999 but here is what could stop it - CNBC [Last Updated On: July 24th, 2020] [Originally Added On: July 24th, 2020]
- Report Doorcast: Big Tech antitrust hearing preview and the Xbox Games Showcase breakdown - Report Door [Last Updated On: July 24th, 2020] [Originally Added On: July 24th, 2020]
- The one big thing each tech CEO will tell Congress - Axios [Last Updated On: July 24th, 2020] [Originally Added On: July 24th, 2020]
- Big Tech Unmasked as Anti-conservative by Project Veritas - Newsmax [Last Updated On: July 24th, 2020] [Originally Added On: July 24th, 2020]
- Antitrust Hearing Involving Apple Chief Tim Cook and Other Big Tech CEOs Reportedly Postponed - MacRumors [Last Updated On: July 24th, 2020] [Originally Added On: July 24th, 2020]
- Amazon To Invest In Reliance Retail: Is Big Tech Joining Hands To Conquer India? - Inc42 Media [Last Updated On: July 26th, 2020] [Originally Added On: July 26th, 2020]
- Zuckerberg, Bezos, other tech CEOs to testify at anti-trust hearing - Toronto Star [Last Updated On: July 26th, 2020] [Originally Added On: July 26th, 2020]
- Lily Allen says she feels sad and calls out big tech amid Wiley antisemitism row - The Independent [Last Updated On: July 27th, 2020] [Originally Added On: July 27th, 2020]
- Big Tech feels the heat from Washington and small agency leaders dish: Tuesday Wake-Up Call - AdAge.com [Last Updated On: July 27th, 2020] [Originally Added On: July 27th, 2020]
- Overzealous government officials should stay out of big tech's way - Washington Times [Last Updated On: July 27th, 2020] [Originally Added On: July 27th, 2020]
- Mint Lite | India covid tally, protests across globe, big tech CEOs & other news - Livemint [Last Updated On: July 27th, 2020] [Originally Added On: July 27th, 2020]
- Big tech antitrust probe report from US Congress likely by early fall - Times Now [Last Updated On: July 27th, 2020] [Originally Added On: July 27th, 2020]
- Antitrust Hearing Involving Apple Chief Tim Cook and Other Big Tech CEOs Reportedly Postponed [Update:... - MacRumors [Last Updated On: July 27th, 2020] [Originally Added On: July 27th, 2020]
- Congressional antitrust probe of Big Tech expected by early fall - The Globe and Mail [Last Updated On: July 27th, 2020] [Originally Added On: July 27th, 2020]
- Big Tech chiefs get brief reprieve from govt hearing into their growing power - ARNnet [Last Updated On: July 27th, 2020] [Originally Added On: July 27th, 2020]
- Lawmakers keen to break up 'big tech' like Amazon and Google need to realize the world has changed a lot since Microsoft and Standard Oil - Fairfield... [Last Updated On: July 29th, 2020] [Originally Added On: July 29th, 2020]
- Stock futures are flat ahead of Fed decision and Big Tech testimony - CNBC [Last Updated On: July 29th, 2020] [Originally Added On: July 29th, 2020]
- Ahead of hearing with big tech CEOs, Cicilline says a Biden presidency would lead to regulation next year - Yahoo News [Last Updated On: July 29th, 2020] [Originally Added On: July 29th, 2020]
- Democrats hurt small business when they attack Big Tech | TheHill - The Hill [Last Updated On: July 29th, 2020] [Originally Added On: July 29th, 2020]
- Tech leads stocks higher as CEOs testify and Fed keeps rates near zero - Fox Business [Last Updated On: July 29th, 2020] [Originally Added On: July 29th, 2020]
- WATCH LIVE: Heads Of Amazon, Apple, Facebook And Google Testify On Big Tech's Power - NPR [Last Updated On: July 29th, 2020] [Originally Added On: July 29th, 2020]
- Big Tech to Testify: What Jim Cramer Is Watching - TheStreet [Last Updated On: July 29th, 2020] [Originally Added On: July 29th, 2020]
- Apple, Google, Amazon, other Big Tech companies have a climate problem; now being forced to clean up - Firstpost [Last Updated On: July 29th, 2020] [Originally Added On: July 29th, 2020]
- Commentary: Big Tech is engaged in a hostile takeover of our country - TheBlaze.com [Last Updated On: July 29th, 2020] [Originally Added On: July 29th, 2020]
- Slog AM: Big Tech's Anti-Trust Hearing, COVID-19 Goes to College, Boeing Is Boned - TheStranger.com [Last Updated On: July 29th, 2020] [Originally Added On: July 29th, 2020]
- Big tech antitrust probe report from Congress likely by early fall - Reuters [Last Updated On: July 30th, 2020] [Originally Added On: July 30th, 2020]
- Vergecast: Big Tech antitrust hearing preview and the Xbox Games Showcase breakdown - The Verge [Last Updated On: July 30th, 2020] [Originally Added On: July 30th, 2020]
- Biased Big Tech algorithms limit our lives and choices. Stop the online discrimination. - USA TODAY [Last Updated On: July 30th, 2020] [Originally Added On: July 30th, 2020]
- Big 5 Tech Stocks Have Trounced the Market. So Have Their Fundamentals. - Barron's [Last Updated On: July 30th, 2020] [Originally Added On: July 30th, 2020]
- Top antitrust Democrat opens hearing by comparing big tech firms to past monopolies | TheHill - The Hill [Last Updated On: July 30th, 2020] [Originally Added On: July 30th, 2020]
- Big Tech antitrust hearing could be colossal or mere theater - Roll Call [Last Updated On: July 30th, 2020] [Originally Added On: July 30th, 2020]
- Stop with the egg metaphor in discussing Big Tech break-ups | TheHill - The Hill [Last Updated On: July 30th, 2020] [Originally Added On: July 30th, 2020]