3 Big Dividend Stocks Yielding Over 8%; JMP Says ‘Buy’

The first stock on our list is a financial company. BlackRock TCP Capital is a specialty finance company with a clear focus on mid-market lending.

PennyMac Mortgage(PMT)

Next up is another financial stock, PennyMac Mortgage. This company is a mortgage investment trust, a sub-niche of the real estate investment trust industry that provides somewhat more liquidity by investing primarily in mortgage backed securities rather than directly in real properties.

During the corona crisis of 1H20, PMT saw earnings turn negative in Q1 and return to positive territory in Q2. The numbers were -$5.99 EPS in the first quarter, and $4.51 in the second. Revenues followed a similar pattern, with the Q2 top line hitting $475 million.

The company adjusted its mortgage payments in the first half to account for the earnings volatility. PMT paid out 25 cents per common share in Q1, just slightly more than half of the long-held dividend of 47 cents. In Q2, management started raising the dividend, and paid out 40 cents per common share, which gives a yield 9.1%.

Trevor Cranston wrote the review of this stock for JMP, and sees the company with a path forward as the pandemic effects wane.

“[Our] outlook on MSRs has improved somewhat in the past few months as the expected negative COVID-19-related impact has subsided, and we continue to believe strength in the correspondent lending business is likely to more than offset any weakness in MSR results due to strong tailwinds for origination volumes, even as conventional margins have returned to more normalized levels,” Cranston opined. “As a result, believe PMT shares should trade at a premium to the hybrid REIT peer group as many peers sold significant volumes of credit assets in late 1Q and early 2Q, resulting in less book value recovery potential.”

Along with these comments, he gives the stock a $19 price target, implying room for 9% upside growth. Cranston’s rating on the stock is Outperform, (i.e. Buy). (To watch Cranston’s track record, click here)

Overall, PMT holds a Moderate Buy analyst consensus rating based on 5 recent Buys and 2 Holds. The stock has an average price target of $19.40, slightly higher than Cranston’s, and indicative of a 11% upside potential. (See PMT stock analysis on TipRanks)

Oaktree Specialty Lending (OCSL)

Last up on this list, Oaktree, is another specialty finance company. Oaktree provides loans and credit access for small- to mid-size companies that cannot gain entry to traditional sources of capital. Oaktree’s portfolio is modestly diverse, with $1.4 billion invested in 128 companies. Most of this is first lien debt, 62%, while some 20% is made up of second lien.

Oaktree reported last month on its FYQ3 results, and the results were solid. EPS came in at 12 cents, against a forecast of 11 cents, for a 9% beat. Revenue for the fiscal third quarter was $34.4 million, even with forecast and down slightly yoy.

The earnings results suggest that the company is emerging from the corona crises intact, a thesis supported by management’s decision to raise the quarterly dividend. They have not raised the payout since mid-2018, when it was set at 10 cents per common share. The new dividend payment is 10% higher, at 11 cents, but while the numbers seem small, the yield is an impressive 8.5%.

Turning back to Christopher York, we find that the JPM analyst has set a $6 price target on OCSL, suggesting his belief in a 24% potential for the stock.

Backing his stance, York writes, “We think the combination of stability in portfolio performance in 2Q20, along with growth in the investment portfolio at wider spreads gave the board the necessary boost to finally increase the dividend with improved visibility in recurring core earnings. Going forward, we believe there are a couple levers available for OCSL to expand earnings and ROE, so we think another dividend increase in F2021 is possible.”

Of the three stocks on this list, Oaktree is the one with a Strong Buy analyst consensus rating – and it is unanimous. The stock has received 5 Buy reviews in recent weeks. The shares are priced at $4.83, and the $5.60 average price target implies an upside potential of 16% for the coming 12 months. (See OCSL stock analysis 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.

Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.

Will CBA, ANZ, Westpac and Telstra pay dividends this reporting season?

Will CBA, ANZ, Westpac and Telstra pay dividends this reporting season? Paul Rickard. by Paul Rickard. 30 July 2020. APRA’s announcement on …

APRA’s announcement on Wednesday that banks should take a “measured approach to capital distributions” clears the way for Commonwealth Bank, ANZ and Westpac to pay a dividend this company reporting season. This is the time when companies report their half year or full year profits, announce any dividend payment, and provide an update on current trading conditions.

To read the full article in the next Switzer Report released later today, click here to take a free 21-day trial.

Why I would buy Telstra and this ASX dividend share

Based on the current Telstra share price, this equates to a fully franked 4.75% dividend yield. Legendary stock picker names 5 cheap stocks to buy right …

Are you looking to bolster your income with some dividends? Then you might want to consider buying one of the ASX dividend shares listed below.

Here’s why I think they would be top options for income investors:

Dicker Data Ltd (ASX: DDR)

The first ASX dividend share to consider buying is Dicker Data. It is Australia’s leading locally owned and operated distributor of IT hardware, software, cloud and IoT solutions for over 5,500 reseller partners. It distributes a wide suite of products from the world’s leading technology vendors, including Cisco, Citrix, Dell Technologies, Hewlett Packard Enterprise, HP, Lenovo, and Microsoft.

Thanks to an increasing number of vendor agreements and robust demand for information technology products, Dicker Data has been growing its earnings and dividends at a solid rate over the last few years. The good news is that this has continued despite the pandemic and it is on course to deliver a strong full year result in FY 2020. As a result, management intends to lift its fully franked dividend by 31% to 35.5 cents per share this year. Based on the latest Dicker Data share price, this represents an attractive 5% dividend yield.

Telstra Corporation Ltd (ASX: TLS)

Another dividend share that I would buy is Telstra. I believe the telco giant’s medium term outlook is currently looking the brightest it has been in a long time. This is thanks to its T22 strategy, which is cutting costs and simplifying its business, the return of rational competition, and the easing of the NBN headwind.

All of this combined, I believe a return to earnings and dividend growth could be on the cards in the not so distant future. For now, though, I’m confident that the company’s 16 cents per share fully franked dividend is sustainable. Based on the current Telstra share price, this equates to a fully franked 4.75% dividend yield.

Legendary stock picker names 5 cheap stocks to buy right now

Motley Fool resident tech stock expert Dr. Anirban Mahanti has stumbled upon five stocks he believes could be some of the greatest discoveries of his investing career.

These little-known ASX stocks are growing like gangbusters, yet you can buy them today for less than $5 a share. Click here to learn more.

See these 5 cheap stocks

Why Buy stock in Unum Group (UNM)?

The top two institutional holders are Vanguard Group, Inc. (The) with over 26.86 Million shares worth more than $403.15 Million. As of March 30, 2020, …

Unum Group (NYSE:UNM) has a beta value of 1.69 and has seen 1,561,893 shares traded in the recent trading session. The company, currently valued at $3.62 Billion, closed the recent trade at $17.76 per share which meant it lost -$0.07 on the day or -0.39% during that session. The UNM stock price is -86.94% off its 52-week high price of $33.2 and 46.06% above the 52-week low of $9.58. If we look at the company’s 10-day average daily trading volume, we find that it stood at 2.22 Million shares traded. The 3-month trading volume is 3.55 Million shares.

The consensus among analysts is that Unum Group (UNM) is a Hold stock at the moment, with a recommendation rating of 3.1. 1 analysts rate the stock as a Sell, while none rate it as Overweight. 8 out of 11 have rated it as a Hold, with 1 advising it as a Buy. 1 have rated the stock as Underweight. The expected earnings per share for the stock is $1.33.

Despite being -0.39% in the red today, the stock has traded in the green over the last five days, with the highest price hit on Wednesday, Jul 29 when the UNM stock price touched $18.75- or saw a rise of 5.55%. Year-to-date, Unum Group shares have moved -39.27%, while the 5-day performance has seen it change -0.9%. Over the past 30 days, the shares of Unum Group (NYSE:UNM) have changed 10.07%. Short interest in the company has seen 7.25 Million shares shorted with days to cover at 2.04.

Wall Street analysts have a consensus price target for the stock at $20.8, which means that the shares’ value could jump 17.12% from current levels. The projected low price target is $15 while the price target rests at a high of $30. In that case, then, we find that the current price level is +68.92% off the targeted high while a plunge would see the stock lose -15.54% from current levels.

Unum Group (UNM) estimates and forecasts

Figures show that Unum Group shares have outperformed across the wider relevant industry. The company’s shares have lost -34.78% over the past 6 months, with this year growth rate of -4.6%, compared to -16.9% for the industry. Other than that, the company has, however, lowered its growth outlook for the 2020 fiscal year revenue. Growth estimates for the current quarter are -2.2% and -6.4% for the next quarter. Revenue growth from the last financial year stood is estimated to be -1.1%.

4 analysts offering their estimates for the company have set an average revenue estimate of $2.99 Billion for the current quarter. 4 have an estimated revenue figure of $2.98 Billion for the next quarter concluding in December 01, 2020. Year-ago sales stood $2.99 Billion and $3.03 Billion respectively for this quarter and the next, and analysts expect sales will grow by 0% for the current quarter and -1.4% for the next.

If we evaluate the company’s growth over the last 5-year and for the next 5-year period, we find that annual earnings growth was +27.3% over the past 5 years. Earnings growth for 2020 is a modest +120.4% while over the next 5 years, the company’s earnings are expected to increase by 9%.

UNM Dividends

Unum Group is expected to release its next earnings report between October 27 and November 02 this year, and investors are excited at the prospect of better dividends despite the company’s debt issue. The forward dividend is 1.14 at a share yield of 6.39%. The company’s dividend yield has gone up over the past 12 months, with a 5 Year Average Dividend Yield of 2.73%.

Unum Group (NYSE:UNM)’s Major holders

Insiders own 0.63% of the company shares, while shares held by institutions stand at 102.98% with a share float percentage of 103.63%. Investors are also buoyed by the number of investors in a company, with Unum Group having a total of 688 institutions that hold shares in the company. The top two institutional holders are Vanguard Group, Inc. (The) with over 26.86 Million shares worth more than $403.15 Million. As of March 30, 2020, Vanguard Group, Inc. (The) held 13.2% of shares outstanding.

The other major institutional holder is Blackrock Inc., with the holding of over 18.25 Million shares as of March 30, 2020. The firm’s total holdings are worth over $273.89 Million and represent 8.97% of shares outstanding.

Also the top two Mutual Funds that are holding company’s shares are Fidelity Low-Priced Stock Fund and Vanguard Total Stock Market Index Fund. As of April 29, 2020, the former fund manager holds about 7.01% shares in the company for having 14250749 shares of worth $248.68 Million while later fund manager owns 5.46 Million shares of worth $81.92 Million as of March 30, 2020, which makes it owner of about 2.68% of company’s outstanding stock.

CIT Group Inc. (CIT) has great growth outlook for 2020

The top two institutional holders are Vanguard Group, Inc. (The) with over 9.91 Million shares worth more than $170.98 Million. As of March 30, 2020, …

CIT Group Inc. (NYSE:CIT) has a beta value of 1.87 and has seen 1,822,165 shares traded in the last trading session. The company, currently valued at $1.82 Billion, closed the last trade at $18.45 per share which meant it lost -$0.21 on the day or -1.13% during that session. The CIT stock price is -176.53% off its 52-week high price of $51.02 and 34.85% above the 52-week low of $12.02. If we look at the company’s 10-day average daily trading volume, we find that it stood at 2.47 Million shares traded. The 3-month trading volume is 2.91 Million shares.

The consensus among analysts is that CIT Group Inc. (CIT) is an Overweight stock at the moment, with a recommendation rating of 2.4. None of the analysts rate the stock as a Sell, while none rate it as Overweight. 6 out of 10 have rated it as a Hold, with 4 advising it as a Buy. None have rated the stock as Underweight. The expected earnings per share for the stock is $0.09.

Despite being -1.13% in the red today, the stock has traded in the green over the last five days, with the highest price hit on Friday, Jul 24 when the CIT stock price touched $19.87- or saw a rise of 7.15%. Year-to-date, CIT Group Inc. shares have moved -59.57%, while the 5-day performance has seen it change -1.76%. Over the past 30 days, the shares of CIT Group Inc. (NYSE:CIT) have changed -3.91%. Short interest in the company has seen 7.05 Million shares shorted with days to cover at 2.42.

Wall Street analysts have a consensus price target for the stock at $26.78, which means that the shares’ value could jump 45.15% from current levels. The projected low price target is $22 while the price target rests at a high of $34. In that case, then, we find that the current price level is +84.28% off the targeted high while a plunge would see the stock lose 19.24% from current levels.

CIT Group Inc. (CIT) estimates and forecasts

Figures show that CIT Group Inc. shares have outperformed across the wider relevant industry. The company’s shares have lost -61.91% over the past 6 months, compared to -20.6% for the industry. Other than that, the company has, however, lowered its growth outlook for the 2020 fiscal year revenue. Growth estimates for the current quarter are -94% and -90.6% for the next quarter. Revenue growth from the last financial year stood is estimated to be -2.7%.

5 analysts offering their estimates for the company have set an average revenue estimate of $441.17 Million for the current quarter. 5 have an estimated revenue figure of $445.19 Million for the next quarter concluding in December 01, 2020. Year-ago sales stood $460.86 Million and $461.1 Million respectively for this quarter and the next, and analysts expect sales will grow by -4.3% for the current quarter and -3.5% for the next.

If we evaluate the company’s growth over the last 5-year and for the next 5-year period, we find that annual earnings growth was +8.1% over the past 5 years. Earnings growth for 2020 is a modest +41.7% while over the next 5 years, the company’s earnings are expected to increase by 10%.

CIT Dividends

CIT Group Inc. is expected to release its next earnings report between October 19 and October 26 this year, and investors are excited at the prospect of better dividends despite the company’s debt issue. The forward dividend is 1.4 at a share yield of 7.5%. The company’s dividend yield has gone up over the past 12 months, with a 5 Year Average Dividend Yield of 2.1%.

CIT Group Inc. (NYSE:CIT)’s Major holders

Insiders own 1.1% of the company shares, while shares held by institutions stand at 105.61% with a share float percentage of 106.78%. Investors are also buoyed by the number of investors in a company, with CIT Group Inc. having a total of 464 institutions that hold shares in the company. The top two institutional holders are Vanguard Group, Inc. (The) with over 9.91 Million shares worth more than $170.98 Million. As of March 30, 2020, Vanguard Group, Inc. (The) held 10.07% of shares outstanding.

The other major institutional holder is Blackrock Inc., with the holding of over 9.27 Million shares as of March 30, 2020. The firm’s total holdings are worth over $160.05 Million and represent 9.42% of shares outstanding.

Also the top two Mutual Funds that are holding company’s shares are FPA Funds Tr-FPA Crescent Fund and Income Fund of America Inc. As of March 30, 2020, the former fund manager holds about 5.69% shares in the company for having 5599562 shares of worth $96.65 Million while later fund manager owns 3.42 Million shares of worth $64.92 Million as of April 29, 2020, which makes it owner of about 3.48% of company’s outstanding stock.