Wall Street investment firms burn midnight oil as the end of 2020 approaches, publishing end-of-year notes and new year predictions, in order to enlighten investors. There is a clear point: We are in a moment of rising markets, and investor sentiment is rising now that the elections are settled and COVID vaccines have received emergency approval and are in distribution networks. However, lockdown policies have been established. To combat the virus this winter slows down the economic recovery. We have yet to see if the economy really will deteriorate or not, and meanwhile, Raymond James Tavis McCourt, a strategic analyst, has published his opinion on the current situation, taking his comments into account. First, McCourt notes that investors are focusing on the good news:[The] The stock market is focusing more on rolling out the vaccine and re-opening economies fully in 2021, and so far, negative data points have been largely ignored. Looking ahead, McCourt writes of the next two years: “We think the logical outcome of 2021 (and 2022 for these) is. Matter) is a possible return to normality with robust growth in EPS offset by reduced P / Es which prevents a change in the vaccine story. We expect cyclical sectors and smaller equity capital to continue to outperform, as is usual in early cycle markets… ”Raymond James’ research analysts have been searching the markets for the ‘right’ buys, and their choices take a hard look. They have been exploiting the same dividend payers. High yields as a favorite investment game.TipRanks database sheds some additional light on three of JMP’s picks – stocks that earn 7% or better – which see the investment firm with a 10% rise or Best New Home Investment (NRZ) credit sector has long been popular Real Estate Investment (REIT) with its high and reliable profits, a feature promoted by tax regulations that stipulate that these companies must return a certain percentage of the profits directly to investors. Headquartered in New York City, new residential investment is typical for its sector. The company’s portfolio includes mortgages and rights to service loans. Mortgage and loan creation.NRZ focuses its operations on the residential housing sector. NRZ is a medium-sized company, with a market value of $ 4.13 billion and a portfolio of $ 5.72 billion. For the second quarter of 2020, after heavy losses during the “ Corona recession ” in the first quarter. However, third-quarter earnings came in at 19 cents a share, down from 54 cents in the previous year’s quarter. But even with that loss, NRZ made sure to maintain its dividend, in fact, it did more than that. The company raised its third-quarter earnings to 15 cents a common share in continuation of an interesting story. Back in the first quarter, the company cut dividends for common stock to 5 cents, in a move to preserve capital during the Corona crisis. The company has since raised its dividend payout by 5 cents each subsequent quarter, and the fourth quarter payment, announced in mid-December, is 20 cents per common share. At that rate, the annual dividend is 80 cents and the yield exceeds 7.87%, and in addition to increasing the dividend, NRZ also announced a share buyback program with a total value of $ 100 million. The buybacks are for preference shares, and are in line with the current common repurchase policy. Analyst Stephen Laws, in his coverage of NRZ to Raymond James, wrote, “We expect strong origination volumes and attractive gains from selling margins to lead strongly near term results, and we still expect an increase in earnings in the fourth quarter. […] For the fourth quarter of 2020, we are increasing our core earnings estimate by $ 0.02 per share to $ 0.35 per share. For 2021, we are increasing our underlying earnings estimate by $ 0.08 per share to $ 1.31 per share. “In line with these comments, laws classify the stock as outperforming (i.e. buy). A target price of $ 11.50 indicates a 16% gain for one year (to see the laws’ follow-up record, click here) Not often that all analysts agree on shares So when that happens, take note. NRZ’s strong buy consensus rating is based on 8 unanimous purchases. Average $ 11.36 share target price indicates 14% and a change from current stock price of $ 9.93. (See NRZ stock analysis at TipRanks) Fidus Investment Corporation (FDUS) Next is a business development company, Fidus Investment. This company is one of several in a niche in mid-market business finance that provides debt solutions and access to capital for smaller companies that may not be able to secure lending Of the larger markets. Fidus’s portfolio focuses on secured debt and mezzanine debt for companies valued between $ 10 million and $ 150 million. Fidus has an inventory of real estate in 68 companies with a total value of $ 697 million. The bulk of that portfolio, 59%, Abbar The company has witnessed second mortgage debts, and the rest is mainly divided between subordinated debt, first mortgage debt and equity related securities. The company witnessed gains in revenues during the second and third quarters of 2020, after negative results in Q1. The top streak for the third quarter came in at nearly $ 21 million, up an impressive 129 percent compared to the previous quarter. Since the third quarter, Fidus has announced its fourth-quarter dividend, at 30 cents per common share, which is the same as the previous two quarters, plus an additional 4 percent special dividend authorized by the board. This brings the total payout for the quarter to 34 cents per common stock, and puts the yield at 9.5%. Raymond James analyst Robert Dodd likes what he sees in Fidus, especially the dividend forecast. “We still see risk / reward attractive at current levels – with stocks trading lower than the book, and covering strong core earnings expected from the NII … we expect FDUS to earn strongly its quarterly core earnings of $ 0.30 / share during the special forecast period. As a result, we are undertaking a modest additions project … ”Dodd places an outperformance (ie buy) rating on the stock, and sets a target price of $ 14. At current levels, this target points to a rise of 10.5% in the coming months. (To see Dodd’s record, click here) Wall Street is somewhat divided on FDUS stocks, a circumstance reflected in the Moderate Buying Analyst’s consensus rating. This rating is based on 4 ratings, including 2 purchases and 2 reservations. The shares are quoted at $ 12.66, and the average target price of $ 13.33 suggests a modest 5% rise from current levels. (See FDUS stock analysis at TipRanks) TPG RE Finance Trust (TRTX) Returning to the REIT sector, we look at TPG RE Finance Trust, the real estate financing arm of global asset company TPG. This fund, which has a market value of $ 820 million, has built a portfolio of commercial mortgage loans totaling $ 5.5 billion. The company is a provider of original commercial mortgage loans starting at $ 50 million, particularly in the primary markets of the United States. The largest share of the company’s loans and holdings is concentrated in the East, like many finance companies, TPG RE Finance experienced heavy losses in the first quarter due to the Corona pandemic crisis – but it has since recovered largely. Revenue in the third quarter was $ 48 million, up 9% year-over-year. During the quarter, TPG received loan payments totaling $ 199.6 million, which is a solid result, and when the quarter ended, the company had $ 225.6 million in cash or equivalent, and the company was easily able to fund its dividend of 20 cents per common share, in Q3. For the fourth quarter, the company recently announced not only a regular payment of 20 cents, but also a special one-off cash dividend of 18 percent. Taken together, dividends yield a return of 7.5%, which is nearly 4 times higher than the average found among S&P companies. Raymond James’ REIT expert Stephen Laws is also optimistic about TRTX. “TRTX has been underperforming since the third quarter results were announced, which we believe creates an attractive buying opportunity… We expect underlying earnings to continue to benefit from LIBOR flooring in loans and expect new investments to resume in Q1-21. The company’s portfolio has collected exposure. The retail and hotel sector is at 14%, which is below the sector average of 19% … ”To that end, laws state that TRTX a Strong Buy and its $ 13 target price point to a 22% rise in 2021. (To watch the log Follow the rules, click here) This stock also carries a strong buy rating from analyst consensus, based on 3 unanimous buy reviews identified in recent weeks. Shares are priced at $ 10.67, and the average target of $ 11.00 suggests a modest 3% rise from current levels. (See TRTX Stock Analysis at TipRanks) To find good ideas for trading shares spread on attractive valuations, visit Best Stocks to Buy from TipRanks, a newly launched tool that unites all of TipRanks’ stock insights. 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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