Volatility is the name of the game right now. Last week, markets had their worst close since March, despite a Friday rally. The S&P 500 lost 6% on Thursday, the index’s worst trading day in three months, and finished the week down 4.8%.Worries about a new spike in coronavirus cases, along with racially charged urban rioting, have put investors in a selling mood. But remember the old cliché, that the Chinese word for crisis is composed of the symbols for ‘danger’ and ‘opportunity?’ The market’s gyrations these last few trading sessions have given income-minded investors an opportunity, if they are willing to shoulder some risk.The question for investors, of course, is where will the market head next? Are the gains returning, or is this just the next hill of the roller coaster? Uncertainty is the only certainty, making defensive moves, toward dividend stocks, a smart play for investors. Using the TipRanks database, we’ve pulled up three Strong Buy stocks that show a combination of dividend yields from 7% to 11% and considerable upside potential. While buying into stocks during a downturn is inherently risky, the upside on these three – and their high-yielding dividends – makes the risk worthwhile.Brookfield Property Partners (BPY)We’ll start in the real estate business, where Brookfield holds one of the world’s largest portfolios in office, retail, multifamily dwellings, industrial parks, hospitality, student housing – there is hardly a sector that Brookfield does not have a finger in. The company owns high-end office space in New York and Los Angeles, as well as London, Sydney, and Toronto. The student housing portfolio includes 5,700 beds in the UK university system. The retail segment includes Saks Fifth Avenue in downtown Manhattan.So, Brookfield is not an ordinary real estate company. Its highly diversified portfolio provided some insulation from the COVID-19 pandemic, and the company reported $309 million in total Funds From Operations (FFO) in Q1 – in line with the year-ago results. General depreciation in the real estate market pushed the net income into negative territory, and BPY showed a loss of 49 cents per share for the quarter.At the same time, Brookfield has maintained its dividend payment. Even facing a severe net loss, management remains committed, for the time being, to its shareholder return policy. The current dividend, at 33.25 cents per share quarterly, gives an annualized payment of $1.33 and an impressive yield of 11.9%. Compare this to the 2.2% average yield among financial sector peer companies, or the 2% average yield found on the S&P 500, and the attraction is clear.CIBC analyst Dean Wilkinson acknowledges Brookfield’s tough business landscape during the pandemic – but points out that “April rent collections in the office and multifamily portfolios averaged above 90%. While retail collections were about 20%, it is important to note that lease obligations are contractual agreements; retailers cannot simply walk away from rental payments, and we expect that a material portion of the 80% of uncollected rent to date will, in time, be honoured through payment plans that are currently in negotiation.”Wilkinson's $18 price target on BPY stock implies a one-year upside potential of 62%, and fully supports his Buy rating on the stock. (To watch Wilkinson’s track record, click here)Overall, Wall Street appears to agree with Wilkinson here. BPY shares have 5 recent analyst reviews, and of those 4 are Buy and only 1 a Hold – making the analyst consensus view a Strong Buy. Shares are priced at $11.13, and the average price target of $15.05 suggests the stock has room for 35% upside growth in the coming year. (See Brookfield stock analysis on TipRanks)Brigham Minerals (MNRL)The next stock on our list, Brigham Minerals, is mineral rights acquisition company focused on the oil and gas sector in the US. Brigham’s portfolio includes large acreage in the Bakken Shale of North Dakota, as well as the Delaware and Midland basins of Texas. These are the formations that put North American hydrocarbons on the map in the last decade, and their output has transformed the US into a major energy exporter.MNRL saw earnings dip in Q1, mainly due to the coronavirus-inspired shutdowns, but EPS remained positive at 14 cents per share. Quarterly production rose by 8% sequentially, to 10,400 barrels of oil equivalent (BOE) per day. The company saw royalty revenue of $28.4 million, with nearly two-thirds of that total coming from Permian holdings. Brigham has been adjusting its dividend over the past year, with the current quarterly payment set at 37 cents per share. This annualizes to $1.48, and gives the stock a dividend yield of 11.5%. Peer companies in the energy sector average a yield of just 1.9%, while Treasury bonds, the traditional ‘safe’ investment, are yielding below 1% up to 10-year terms. MNRL’s return simply blows away the alternatives.SunTrust analyst Welles Fitzpatrick sees MNRL as a clear choice for investors. He writes, “MNRL turned in a 1Q beat on higher than expected lease bonuses, and in contrast to the rest of the industry paid out all its discretionary cashflow. The company's timely offering in 4Q allows the unlevered balance sheet to shine. While MNRL will see declines in rigs and production this year the company should be able to maintain a high percent of CF distributed.”Fitzpatrick’s Buy rating on the stock is supported by his $16 price target, suggesting a solid 24% upside potential. (To watch Fitzpatrick’s track record, click here.)The analyst consensus here, at Strong Buy rating, is based on 6 Buy and 2 Hold reviews set in recent weeks. MNRL shares are trading for $12.85; the average price target, at $14.57, indicates a 20% upside for the stock. (See Brigham Minerals stock analysis on TipRanks)Umpqua Holdings (UMPQ)Last on our list for today is Umpqua, a holding company based in Portland, Oregon. Umpqua’s main subsidiary is Oregon’s Umpqua Bank. The bank provides asset management, mortgage banking, and general financial services in commercial and retail banking for corporate, institutional, and individual customers. The bank has locations across Oregon, as well as Washington State, Idaho, Nevada, and California.The first quarter – the coronavirus quarter – was hard on Umpqua. The company reported a net loss of $28.3 million, or 13 cents per share. Management laid the loss – the company’s worst report after a two-year run of profitable quarters – squarely on the COVID-19 pandemic and crisis. The company has been able to switch many non-customer-facing employees to remote work, while keeping over 95% bank branches open. Looking ahead, UMPQ is expected to show a 17-cent EPS profit in Q2.Through the coronavirus crisis, UMPQ has kept up its dividend. The company has a 7-year history of reliable dividend growth, and announced its most recent dividend payment back in March. They payment, made in April, was 21 cents per share. At 84 cents annualized, this gives UMPQ shares a dividend yield of 7.15%. This is more than 3.5x the average found among S&P listed companies, and also significantly higher than most peer companies’ payments.Reviewing the stock for SunTrust Robinson was analyst Michael Young. He backed his Buy rating on the stock with a $13 price target, showing confidence in a 11% upside potential. (To watch Young’s track record, click here)Backing his stance, Young looked closely at the bank’s loan portfolio, writing, “Very granular portfolio, average loan size is under $1 million. The loan portfolio consists of very low leverage clients relative to competitors according to management… We do note that UMPQ has a larger multifamily loan concentration, but this is also likely one of the best performing CRE asset classes through a recession.” Overall, Wall Street analysts are thoroughly impressed with UMPQ. It boasts 100% Street support, or 3 Buy ratings in the last three months, making the consensus a Strong Buy. Meanwhile, the $13.67 average price target implies that shares could surge nearly 22% in the next twelve months. (See Umpqua stock-price forecast 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.
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In this article we will check out the progression of hedge fund sentiment towards Moderna, Inc. (NASDAQ:MRNA) and determine whether it is a good investment right now. We at Insider Monkey like to examine what billionaires and hedge funds think of a company before spending days of research on it. Given their 2 and 20 […]
In this article we will check out the progression of hedge fund sentiment towards Enbridge Inc (NYSE:ENB) and determine whether it is a good investment right now. We at Insider Monkey like to examine what billionaires and hedge funds think of a company before spending days of research on it. Given their 2 and 20 […]
Yahoo Finance’s Alexis Christoforous and Brian Sozzi speak with Yahoo Medical Contributor and Columbia University Associate Professor of Emergency Medicine, Dr. Dara Kass, about the the spike in U.S. coronavirus cases, contact tracing, and COVID-19 vaccines. Broyhill Asset Management, a boutique investment firm based in North Carolina, released its Q1 2020 Investor letter – a copy of which can be downloaded here. Established as a family office, the company invests with a long-term, objective, and rational perspective. You should check out Broyhill Asset Management's top 5 stock picks for investors to […]
Jonathan Root, Moody’s Investors Service Senior Vice-President, joins Yahoo Finance’s The First Trade to discuss his outlook on the airline industry and more. Tesla Inc.’s (TSLA) China car registrations in May jumped 150% month on month, Reuters reported citing data from auto consultancy LMC Automotive.The U.S. electric vehicle maker’s China registrations, including imported cars, grew to 11,565 in May from 4,633 units in April.Data from the China Passenger Car Association shows sales of Tesla’s Shanghai-made Model 3 sedan hit 11,095 units in May.Still, shares in Tesla continued to fall in Monday’s pre-market trading declining another 3.4% to $903.45 after dropping 3.9% on Friday. Meanwhile, year-to-date the stock has more than doubled.Last week’s start of a downward trend was triggered by two rating downgrades from analysts at Morgan Stanley and Goldman Sachs.Morgan Stanley’s Adam Jonas lowered his rating on the stock to Sell from Hold with a $650 price target (31% downside potential) amid concerns about U.S.-China trade dynamics as well as recent price cuts of some of the car maker’s models.Jonas believes that Tesla’s recent rally, doesn’t adequately reflect the potential for a deterioration in U.S.-China trade relations that could "disproportionately" impact Tesla relative to other automotive companies.Goldman Sachs analyst Mark Delaney downgraded the stock to Hold from Buy, citing its high valuation.“We’d look to become more positive on Tesla stock again if we had more confidence in the near to intermediate term trajectory of fundamentals, or if valuation became more attractive,” Delaney wrote in a note to investors.TipRanks data shows that the stock has Hold analyst consensus with 11 Sells and 9 Holds versus 8 Buys. Meanwhile, the Street’s $632.45 average price target implies 32% downside potential in the shares over the coming year. (See Tesla’s stock analysis on TipRanks).Related News: Tesla Sales Triple For China Model 3 Vehicle In May Grubhub Shares Lifted On Report Of European Acquirers Lining Up Can Tesla Provide the Million Mile EV Battery? Top Analyst Weighs In More recent articles from Smarter Analyst: * Dr Reddy’s Labs Signs Licensing Agreement For Gilead’s Remdesivir * Accenture To Snap Up Sentelis In Latest AI-Boosting Move * Unilever To Invest €1 Billion In 10-Year Climate And Nature Fund * RBC Slashes Cineplex Outlook As Major C$2.8B Deal Terminated
(Bloomberg) — Hertz Global Holdings Inc. warned prospective new stock investors they’re all but certain to be wiped out as the car renter proceeds with an improbable share sale in the midst of bankruptcy proceedings.Equity holders will not see a recovery from any bankruptcy plan unless those with more senior claims, including bondholders, are paid in full, Hertz said in a prospectus Monday. That would require “a significant and rapid and currently unanticipated improvement in business conditions,” the company said.Hertz shares traded down as much as 29% before the start of regular trading, though the stock is still well above where it first traded after the company filed for Chapter 11. A bankruptcy court judge signed off on the equity sale last week after the company pledged to alert buyers about the potential they could be wiped out.Jefferies LLC, which is leading the share offering, will get as much as 3% of gross proceeds and as much as $200,000 for its lawyers, according to the filing. A lawyer for Hertz acknowledged during last week’s court hearing that the move to sell stock while in bankruptcy probably is unprecedented.Hertz previously said in a court filing that a share sale could raise as much as $1 billion in cash. But that was based on the almost tenfold increase in its stock from 56 cents on May 26 to $5.53 on June 8. The shares changed hands for as little as $2 in early trading Monday.In its filing, Hertz said it does not anticipate making lease payments on its rental cars for May or June, but will be required to start paying in full beginning in July unless the court decides otherwise. The company’s inability to work out a deal with the owners of its vehicles for a reduced payment in April pushed it into bankruptcy.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
AT&T Inc. (NYSE: T) is in discussions with multiple companies to sell its subsidiary Warner Bros. Interactive Entertainment, according to a CNBC report Friday.What Happened Multiple companies, including Electronic Arts Inc. (NASDAQ: EA), Activision Blizzard, Inc. (NASDAQ: ATVI), and Take-Two Interactive Software Inc. (NASDAQ: TTWO), have expressed interest in purchasing the video game unit, CNBC reported.A deal, if finalized, could fetch AT&T as much as $4 billion, according to CNBC. The Dallas conglomerate had acquired Times Warner, of which the gaming division is a part, for about $109 billion in 2018.CNBC learned that AT&T is likely to strike a deal where it continues to receive compensation for intellectual property from the games even after the unit is sold. Some of the major Warner video games are based on AT&T-owned franchises like Harry Potter, Game of Thrones, and The Lego Movie.Why It Matters It isn't immediately clear why AT&T is looking to sell the gaming unit. Activist investment firm Elliott Management Corp. revealed a .2 billion stake in the telecommunication giant in September last year and has since pushed for divestment in non-core holdings, including DirecTV.AT&T last month raised $12.5 billion in a debt offering, as reported by Bloomberg.AT&T Price Action AT&T shares closed nearly 1.1% higher at $30.5 on Friday and inched slightly higher in the after-hours session.See more from Benzinga * US Debt Market Raised .5B This Week, The Highest Since 2007: FT(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.