Let’s talk wallet defense. After manipulating the social mob market last week, this is a topic that should not be ignored. Now, this does not mean that the markets are collapsing. After losses of 2% by closing last week’s Friday session, trading this week started on a positive note, with the S&P 500 rising 1.5% and the Nasdaq rising 2.5%. The fundamental bullish factors – a more stable political landscape, and continued progress in coronavirus vaccination programs – remain in the works, even if they are not as robust as investors had hoped. While the increased volatility may stay with us for some time, it is time to look at defensive stocks. This will lead to profits. By providing a steady income stream, regardless of market conditions, reliable dividend stocks provide a platform for your investment portfolio when a stock stops appreciating. With that in mind, we used the TipRanks database to pull out three dividend stocks up to 8%. This is not all they offer, however. Each of these stocks earned enough street praise to earn a unanimous “strong buy” rating. New Residential Investment (NRZ) We will start by researching the segment of REIT, Real Estate Investment Trusts. These companies have long been known for high-yielding and reliable dividends – the result of the company complying with tax rules that require real estate investment funds to return a certain percentage of profits directly to shareholders. NRZ, a mid-sized company with a market value of $ 3.9 billion, owns a diverse portfolio of residential mortgages, original loans, and mortgage loan service rights. The company is headquartered in New York City. NRZ has a $ 20 billion investment portfolio, which has generated $ 3.4 billion in profit since the company was founded. The portfolio has proven resilient in the face of the Corona crisis, and after the difficult first quarter of last year, NRZ saw growing gains in the second and third quarters. The third quarter, the most recent report, showed GAAP income of $ 77 million, or 19 cents a share. Although declining year on year, this earnings per share was a strong reversal from the 21 percent loss recorded in the previous quarter. The increased income put NRZ in a position to increase its dividend. The third-quarter payment was 15 cents per common share; Fourth-quarter earnings were raised to 20 cents per common share. At this rate, our annual dividend comes to 80 cents and yields 8.5%. In another move to return profits to investors, the company announced in November that it had agreed to buy back shares of $ 100 million. BTIG analyst Eric Hagen impressed New Residential – especially with the company’s balance sheet and liquidity. “[We] Such as the opportunity to build some capital through retained earnings while maintaining a competitive return. We believe the dividend increase highlights the enhanced liquidity position the company sees it now enjoys … We expect NRZ to be able to release capital as it has secured nearly $ 1 billion in securitized debt for its MSR portfolio through two separate deals since September. In keeping with his comments, Hagen rated NRZ a Buy, and its $ 11 price target indicates a 17% rise for the next year. (To see Hagen’s record, click here) It’s not usual for all analysts to agree on the stock, so when that happens, Note this.NRZ’s buy consensus rating is based on a consensus of 7 buys.The average target price per share of $ 11.25 indicates an increase of roughly 20% from the current stock price of $ 9.44. (See NRZ stock analysis at TipRanks) Saratoga Investments (SAR) With the following stocks, we move on to the investment management sector. Saratoga specializes in medium-market debt, appreciation, and equity investments, and has more than $ 546 million in assets under management Saratoga’s portfolio is extensive, covering industries, software, and waste disposal , And home security, among other things. Saratoga has seen a slow – but steady – recovery from the Corona crisis. The company’s revenue declined in the first quarter of 2020, and has slowly increased since then. The third-quarter financial report, released in early January, showed $ 14.3 million on the first line. In terms of adjusted pre-tax terms, Saratoga’s net investment income of 50 cents per share exceeded expectations of 47 percent by 6 percent. They say slow and steady win the race, and Saratoga has generally shown investors a steady hand over the past year. The stock rebounded 163% from its lowest level after the Corona crash last March. The dividend, which the company reduced in CYQ2, has been raised twice since then. The current dividend, at 42 cents per common share, was announced last month for the February 10 payment. An annual payment of $ 1.68 gives a yield of 8.1%. Analyst Mickey Schlain, of Ladenburg Thalmann, takes an optimistic view of Saratoga, writing: “We believe the SAR portfolio is relatively defensive with an emphasis on software, IT services, educational services and the CLO … The SAR’s CLO is still present and performing, the company seeks Our model expects to use SAR cash and SBA bonds to fund the net growth of the portfolio. We believe that the Board of Directors will continue to increase dividend payouts taking into account the portfolio performance and existence Uncirculated taxable income, economic benefits of the Covid-19 vaccination program. To that end, Schleien sets the purchase price in Saudi riyals along with a $ 25 target price. This number indicates a 20% rise from current levels. (To see Schleien’s record, click here) Wall Street analysts agree with Schleien on this stock – the other three reviews recorded are Buys, and the analysts’ consensus rating is Strong Buy. Saratoga shares are trading at $ 20.87, and the average target price is $ 25.50, indicating a 22% gain for the next 12 months. (See SAR stock analysis on TipRanks) Hercules Capital (HTGC) Last but not least, Hercules Capital, a venture capital firm. Hercules provides funding support to small client companies in their science-oriented early stages; Hercules clients in Life Sciences, Technology and Financial SaaS. Since it started in 2003, Hercules has invested over $ 11 billion in more than 500 companies. The quality of the Hercules portfolio is evidenced by the company’s recent performance. The stock has fully recovered from the Corona crisis last winter, recovering 140% from its lowest level in April. Earnings have also rebounded. During the first nine months of 2020, HTGC recorded net investment income of $ 115 million, or 11% higher than the same period in 2019. For dividend investors, the key point here is that net investment income covered the distribution – in fact, total Base distribution payment is 106%. The company was confident enough to boost distribution with an additional two-year payment. The combined payment gives you $ 1.28 per year per common share, and a return of 8.7%. In another sign of confidence, Hercules completed a $ 100 million bond offering in November, raising capital to pay off debt, new investments and corporate purposes. The bond was offered in two tranches, each of $ 50 million, and the notes are due to be introduced in March of 2026. Analyst Crispin Love, who covers Piper Sandler’s stock, covers a lot of what he loves about HTGC. “We still believe that HTGC’s focus on fast-growing technology and life sciences companies puts the company well into the current environment. Additionally, Hercules is not dependent on recovering from COVID due to the lack of investments in“ at risk ”sectors. Hercules also has a center Strong liquidity, allowing the company to act quickly when it finds attractive investment opportunities. All of the above convinced Love to rate HTGC outperforming (i.e. buy). In addition to the call, set a target price of $ 16, indicating a potential 9% rally. (To see Record Love, click here) The recent surge in equity value pushed Hercules stock straight to its average target price of $ 15.21, leaving only 4% up from the trading price of $ 14.67. However, Wall Street doesn’t seem to mind it, Whereas, the analyst consensus rating is a strong consensus to buy, based on 6 recent buy-side ratings. (See HTGC stock analysis at TipRanks) To find good ideas for trading shares distributed on attractive valuations, visit the Best Stocks to Buy from TipRanks, a tool launched Recently, all R. Ia Stocks for TipRanks. Disclaimer: The opinions expressed in this article are only those of featured analysts. The content is intended for informational use only. It is very important to do your analysis before making any investment.
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