Alpha Bank selects Davidson Kempner as preferred bidder for $ 12 billion bad debt
Investment firm Morgan Stanley had set a year-end target of 3,900 for the S&P 500 – and it’s already outdated. The index stands at 4,196, 7.5% above Morgan Stanley’s target. Since the beginning of the year, despite some volatile trading, the S&P has grown by almost 12%. Mike Wilson, US chief investment officer and equity strategist for Morgan Stanley, took a deep dive into the current state of the market and believes values have peaked, at least for now. “We continue to believe that valuations are too high and will adjust substantially to the downside over the next six months … We have left the early part of the cycle of this recovery … the reopening of the economy is likely to put upward pressure on costs. and downward pressure on margins. This will come as a surprise to the now high earnings estimates, in our view, “Wilson explained. The markets also do not receive any help from fiscal policy. Wilson notes that the Biden administration is pushing to raise the corporate tax rate to 28%, and while it is likely to be compromised at a slightly lower rate, Wilson sees the corporate tax hike as a headwind. for the S&P. For retail investors, this environment points to defensive stocks, to insulate the portfolio from depreciating stocks and this will naturally lead to the topic of dividend stocks. The dividend payout provides a steady stream of income, which can offset lower stock gains when markets reach a plateau. With this in mind, we used the TipRanks database to focus on two stocks that exhibit high dividend yields, on the order of 7%. Each stock also holds a Strong Buy consensus rating; let’s see what makes them so attractive to Wall Street analysts. Hercules Capital (HTGC) We will start with Hercules Capital, a business development company that is revolutionizing its niche: it specializes in venture capital. Hercules provides funding and support to science-oriented early stage client companies. The company has $ 2.6 billion in assets under management and has committed $ 11.6 billion in financing to over 530 customers in its 18 years of operation. For the first quarter of this year, Hercules posted a record level of new debt and equity commitments of $ 530.9 million. The company had available cash of $ 550 million at the end of the quarter and net investment income of 30 cents per share, based on a total of $ 34.6 million. During the quarter, Hercules also declared its regular dividend, at 32 cents per common share. Subsequently, the company added an additional dividend of 7 cents per share, bringing the total payment to 39 cents in the current quarter. That payment gives a return of 7.5%. Covering the shares of RBC Capital, 5-star analyst Kenneth Lee writes, “HTGC’s first private credit fund could potentially expand opportunities across the board. The potential investment pipeline looks robust. We continue to favor HTGC’s specialized niche in direct lending to growth-oriented technology companies, well-supported dividends, and above-peer average ROE generation potential. ”The analyst added,“ We continue to believe that HTGC’s common dividends are well supported; our NII / sh forecast for FY21 / FY22 continues to be above the base dividend level. In addition, the 94c / sh income spillover provides additional support. “To this end, Lee rates HTGC as Outperform (i.e. Buy), and his $ 19 price target implies a one-year upside potential of ~ 14%. Based on the current dividend yield and expected price appreciation, the stock has a potential total return profile of around 21%. (To see Lee’s track record, click here) Wall Street analysts are completely agree here; all 10 recent HTGC stock reviews are positive, making Strong Buy’s consensus rating unanimous. The stock retails at $ 17.03 and the average price target of $ 18.13 suggests upside potential of around 12%. (See HTGC stock analysis on TipRanks) Gladstone Commercial (GOOD) Will change gear slightly, but we will stay in the financial sector for our next stock. Gladstone Commercial is a real estate investment fund ( REIT) and, as you suggest sce the name, the company focuses on commercial real estate. Gladstone’s portfolio is mainly composed of industrial properties and offices, both single-tenant and anchored multi-tenant. The portfolio includes 120 properties in 27 states, with a total of 107 tenants. Gladstone boasts that her property occupancy rate has never dropped below 95% since the company went public in 2003; the current employment rate is 95.5%. Another feature of Gladstone’s portfolio is the long-term nature of the leases. This helps to block the flow of income, keeping profits stable even when the macroeconomic situation is unstable. Gladstone has seen its quarterly revenue remain between $ 33 million and $ 34.6 million for the past 5 quarters. The most recent quarter, 1Q21, Gladstone posted total revenue of $ 34.6 million, the highest in that bracket. The company collected 98% of the rents due during the quarter and renewed leases on more than 192,000 square feet of property, with lease terms set between 6.6 and 11.8 years. Especially for investors, Gladstone also declared its dividend for the quarter. The company pays monthly and in April declared a payment of 12.5 cents for each of the months of April, May and June. This adds up to 37.5 cents quarterly or $ 1.50 per annualized common share. At that rate, the dividend yields 7.2%. Craig Kucera, 5-star analyst at B. Riley Securities, writes of this company: “GOOD’s employment is improving and the volume of acquisitions is expected to increase during the remainder of 2021 … GOOD’s focus on investment continues. in smaller industrial properties located in secondary markets to enable acquisition returns in excess of the company’s cost of capital and we believe the shares are attractive, trading at 100% of our estimated NAV … “Unsurprisingly, Kucera values the shares GOOD at Buy along with a price target of $ 23, suggesting a 10% upside. (To see Kucera’s track record, click here) While there are only 3 recent reviews on this stock, all of them are positive, which makes analyst consensus a strong buy. GOOD has an average price target of $ 23, matching that of Kucera above, and a current trading price of $ 20.92. (See GOOD Stock Analysis on TipRanks) To find good ideas for trading dividend stocks at attractive valuations, visit TipRanks ‘Best Stocks to Buys, a newly launched tool that combines all of TipRanks’ equity insights. Disclaimer: The views expressed in this article are solely those of the analysts present. The content is to be used for informational purposes only. It is very important to do your own analysis before making any investments.