3 leading dividend stocks with growth opportunity; Goldman Sachs says ‘Buy’
Investment is about making a profit, and investors have long seen two main paths toward this goal. Growth stocks, stocks that will yield a return based primarily on rising stock prices, are one way. The second route moves through dividend stocks. These are shares that pay a percentage of profits back to shareholders – dividends, which are usually sent quarterly. Payments vary widely, from less than 1% to more than 10%, but the average among stocks listed on the S&P 500 is about 2%. Dividends are a nice addition to a patient investor, as they provide a steady income stream. Goldman Sachs analyst Caitlin Burroughs has examined the realm of real estate trust, a stock group known for both high and reliable dividends – and she sees many reasons to expect strong growth in three stocks in particular. Running the trio through the Tifranks database, we learned that the rest The streets have encouraged all three, as they boast analysts’ approval of a “strong buy.” It is considered a successful opening, and BNL now boasts a market capitalization of over $ 2.63 billion. Broadstone’s portfolio includes 628 properties across 41 U.S. states plus the Canadian province of British Columbia. The best feature here is the nature of the long-term leases – the weighted average lease is 10.8 years.During the third quarter, the last with full funds available, BNL reported a net profit of $ 9.7 million, or 8 cents per share. Cover, and the company reported collecting 97.9% of the rent due during the quarter. Looking ahead, the company expects property acquisitions of $ 100.3 million in the fourth quarter, and the rent collection rate increased by 98.8%. Broadstone revenues and high rent collections support a dividend of 25 cents per ordinary share, or $ 1 a year. This is a lucrative payment to the company, and offers investors a return of 5.5%. Goldman Caves sees the company’s acquisition process as the most important factor here. “Reliable acquisitions are Broadstone’s main profit motive … While management halted acquisitions due to market uncertainty caused by COVID (BNL did not complete any acquisitions in 1H20) and ahead of its IPO, we are confident that acquisitions will strengthen in 2021, and we have seen the It starts with 4Q20 activity … We estimate that BNL achieves a positive investment gap of 1.8%, leading to 0.8% of earnings growth (in 2021E FFO) for every $ 100 million of acquisitions (or 4.2% in our volume of acquisitions in – 2021E), “Burrows Sever. To that end, Burrows ranks the BNL in buying, and its price target of $ 23 suggests an increase of ~ 27% for the coming year. (To view Burrow’s track record, click here) Wall Street generally agrees with Burrows in Broadstone, as presented by the 3 positive reviews the stock has garnered in recent weeks. These are the only reviews recorded, making the analyst’s consensus rating for strong buy unanimous. The stock is currently priced at $ 18.16, and the average price target of $ 21.33 offers a reverse valuation for the year of ~ 17%. (See BNL Stock Analysis at TipRanks) Realty Income Corporation (O) Realty Income is a major player in the REIT field. The company holds a portfolio worth more than $ 20 billion, with more than 6,500 properties located in 49 countries, Puerto Rico and the United Kingdom. Annual revenue exceeded $ 1.48 billion in fiscal year 2019 (the latest with full data) and maintained a monthly dividend for 12 years. Looking at current data, we find that O posted 7 cents a share in the third quarter of 2020, along with a total of $ 403 million in revenue. The company charged 93.1% of its contract rents for the quarter. Although relatively low, a breakdown of the monthly values shows that rent collection rates have been rising since July. As mentioned, O pays a monthly dividend, and has done so regularly since it was publicly listed in 1994. The company raised the payment in September 2020, marking the 108th increase in that period. The current payment stands at 23.45 cents for a common stock, which changes to $ 2.81 cents – and gives a return of 4.7%. Based on the above, Burrows has raised this stock on its list of convictions in America, with a Buy rating and a price target of $ 79 for the next 12 months. This target indicates a 32% increase over current levels. In backing its position, Burroughs noted, “We estimate a 5.3% growth in FFO per year over 2020E-2022E, compared to an average of 3.1% in full REIT coverage. The analyst added, “We assume that O earns $ 2.8 billion in acquisitions in each of the years 2021 and 2022, compared to the expected consensus of $ 2.3 billion. [We] It is believed that our acquisition volume assumptions may prove conservative because by eight days to 2021 the company has already made or agreed to make purchases of $ 807.5 million (or 29% of our estimate for 2021). “Overall, Wall Street is taking a bullish position relative to real estate revenue stocks. 5 Purchases and holdings issued in the previous three months make the stock a strong buy. Meanwhile, the average price target of $ 69.80 offers about 17% upside down from the current stock price. (See O Stock Share Analysis in TipRanks) The latest Essential Properties Realty Trust (EPRT), Essential Properties, owns and manages a portfolio of commercial properties for individual tenants across the U.S. There are 214 tenants across more than 1,000 properties in 16 industries, including Car washes, convenience stores, medical services and restaurants. Essential Properties boasts a high occupancy rate of 99.4% on its assets. In the third quarter of 20, the company grew by 18.2% compared to last year and reached $ 42.9 million. Established the quarter with impressive available liquidity Of $ 589.4 million, including cash, cash equivalents and available credit.The strong cash position and rising revenues made the company confident enough to increase the dividend for the fourth quarter.The new dividend payment is 24 cents per ordinary share, an increase of 4.3% from the previous payment. To 96 cents, giving a return of 4.6% .The company has been raising its dividend steadily for the past two years. In its review of Goldman, Burrows focuses on the recovery that Essential Properties has made since COVID’s panic peak last year. Of EPRT Were open (in full or on a limited basis). “This situation has improved in the medium months and now only 1% of EPRT’s portfolio is closed … We anticipate that EPRT’s future earnings growth will be driven by growth in acquisitions and estimates a potential growth of 2.8% in earnings from $ 100 million in acquisitions,” Burroughs wrote. , Burrows gives EPRT shares a Buy rating, along with a price target of $ 26 per year, indicating a reversal of 27% .Therefore, EPRT has 9 recent analyst reviews, and a distribution of 8 Buys and 1 Sell gives the stock a strong consensus rating. The stock is $ 20.46 and has an average price target of $ 22.89, which gives ~ 12% reverse potential from current levels. (See EPRT stock analysis on TipRanks). To find good ideas for trading dividend stocks at attractive value, visit TipRanks’ best stocks Buy, a recently launched tool that consolidates all of TipRanks’ stock insights. Disclaimer: The opinions expressed in this article are solely those of the analysts presented. The content is for informational purposes only. It is very important to perform your own analysis before making any investment.