3 shares “Strong buy” with at least 6% dividend yield
There is so much going on in the markets that it is difficult to know where to start and what to look for. On the red side of the book you can see that the headwinds are gathering. House Democrats still reject the $ 1.8 trillion coronavirus aid package. Dollars offered by the White House, saying that President Trump̵7;s proposal is not too deep. Domestic Democrats are pushing for $ 2.2 trillion in incentives. At the same time, Eli Lilly, Johnson and Johnson suspended their coronavirus vaccination programs after the latter company reported an “adverse event” in early trials. This is not just a concern for investors, as most hopes for a “return to normal” depend on the development of an existing vaccine against the new virus. And the earning season begins. Over the next few weeks, we will see third-quarter results from every public company, and investors will look forward to seeing those results. The only opinion is that the profit will decrease on an annualized basis somewhere between 20% and 30%. With this in mind, we used the TipRanks database to obtain three dividend stocks yielding 6% or more. However, this is not all they offer. Each of these stocks has a Strong Buy rating and significant growth potential. Philip Morris (PM) The first on the list is the tobacco company Philip Morris. “Stocks of sins”, producers of tobacco and alcohol, have long been known for their good dividends. Over the past year, the prime minister has taken another step by returning to smokeless tobacco products that are sold as cleaner and less hazardous to consumers. One of the signs of this is the company’s partnership with Altria to produce and sell iQOS, a heated smokeless tobacco product that will allow users to receive nicotine without tobacco smoke contaminants. PM has invested more than $ 6 billion in the product. Given the regulatory challenges and PR associated with vape products, the Prime Minister believes that smokeless heated tobacco will be the strongest alternative with greater potential for growth. The iconic brand remains a bestseller, despite a long-standing trend when public opinion turns against cigarettes. As for dividends, the Prime Minister was and remains a true champion. The company has been increasing dividend payments annually since 2008 and paying quarterly. Even the crown could not derail it; PM continued to pay $ 1.17 quarterly until 2020, with the latest dividend paid earlier this month rising to $ 1.20 per share. This is up to $ 4.80 per year and gives a return of 6%. Covering the PM for Piper Sandler, analyst Michael Lavery likes the move to smokeless products, writing: “We remain positive about the strong long-term prospects of the PM, and we believe that the latest iQOS momentum throughout the COVID-19 pandemic is impressive. IQOS has strong user growth and profitability, and reopening stores can further facilitate the acceptance of new users. ” Lavery estimates that the prime minister is overweight (ie a purchase), and his price price of $ 98 is expected to increase by 24% per year. (To view Lavery’s track record, click here) Overall, the Strong Buy consensus rating based on the PM is based on 9 reviews, ranging from 8 to 1 in “Buy vs Hold”. Shares are worth $ 79.10, and their average price of $ 93.56 has the potential to grow by 18%. (See PM Stock Analysis on TipRanks) Bank of NT Butterfield & Son (NTB) Butterfield is a small-capital banking firm based in Bermuda that provides a full range of services to clients on the island – as well as in the Cayman Islands, Bahamas and The Channel Islands, as well as Singapore, Switzerland and the United Kingdom. Butterfield’s services include personal and business loans, savings accounts and credit cards, mortgages, insurance and wealth management. In the first half of this year, Butterfield reduced revenues and profits in line with the overall structure of banking services around the world – the global COVID-19 pandemic worsened business, and bankers felt the blow. Earnings in the last quarter of 2019 were 87 cents per share, and by the 2nd quarter of 20 fell to 67 cents. Although this is a significant drop, it was still 21% better than expected. On the first line, revenue drops to $ 121 million. NTB reports third-quarter earnings later this month, and the forecast is 63 cents EPS. Along with projected earnings, Butterfield is paying a strong dividend this year. By the second quarter, dividend payments were up to 44 cents per common share, making the return a solid 7%. When considering the current regime of low interest rates – the US Federal Reserve has set rates close to zero, and treasury bonds yield less than 1% – the payment of NTB looks even better. Raymond James Donald Worthington, a 4-star analyst for Raymond James, writes Butterfield, “… a sustainable level of capital [provide] in our opinion, more than sufficient loss absorption capacity for any credit issues. Its stability of fee income proved valuable given the impact of lower interest rates on research institutes, where the bank actively managed costs to help maintain profits. We continue to believe that its dividends are now safe, given its low-risk loan portfolio, sound capital and our dividend payout forecast of up to 100%, even under our tight forecasts. ” These comments confirm the excess of analysts (ie acquisition) rating, and its price price of 29 US dollars is expected to increase by 15% next year. (To view Worthington’s track record, click here) In total, NTB has the latest 4 reviews, which include 3 purchases and a single hold, making analysts’ consensus a strong acquisition. This stock has an average price of $ 29, which corresponds to Worthington. (See NTB Stock Analysis on TipRanks) Enviva (EVA) The last on our list is energy company Enviva. This company occupies an interesting niche in the main sector, producing “green” energy. In particular, Enviva is a producer of fuel from recycled biomass, a derivative of wood pellets, sold to power plants. Fuel burns cleaner than coal – an important point in today’s political climate – and is made from recycled waste (wood chips and sawdust) from the timber industry. The company’s production facilities are located in the southeastern part of America, and the main consumers – in the UK and mainland Europe. The economic downturns imposed during the Crown pandemic reduced electricity demand, and Enviva’s revenue fell to 1H20, mainly due to declining demand. However, profits remained positive, and EPS forecast for the 3rd quarter predicts a surge of up to 45 cents – in line with significant revenues in the second half of 2019. Enviva has shown continued commitment to paying dividends, and last quarter, the August payment, the company raised its fee from 68 cents per share to 77 cents. This brought the annual dividend value to $ 3.08. US per share, and the yield was 7.3%. Even better, Enviva has been paying regular dividends for the past 5 years. Covering these stocks for Raymond James, there is an analyst Pavel Molchanov, who estimates EVA as superior (ie buys) and sets the price at $ 44. The recent rise in shares has brought shares closer to this goal. Supporting his position, Molchanov writes: “Enviva is benefiting from an ever-expanding customer base, and drop-down lists have seen an increase in visibility. In the context of mass coal sales in the energy sector, including (as of September 2020) 34 countries and 33 subnational jurisdictions with a mandatory waiver of coal … “(To view Molchanov’s track record, click here.) Based on the consensus rating of the Enviva Strong Buy. for 4 purchases and 1 withholding. , 60, and, as mentioned, closed at an average price of $ 44.80 (See EVA Stock Analysis on TipRanks.) To find good ideas for trading dividend stocks at attractive rates, visit Best Stocks to Buy TipRanks, a recently launched tool that combines all analytics on TipRanks promotions, exclusively for analysts, is for informational purposes only. own analysis before making any investment.