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Here are three high-dividend stocks, according to top Wall Street experts at TipRanks, a platform that ranks analysts based on past performance.
Brookfield Infrastructure Partner
The first dividend stock of the week is Brookfield Infrastructure Partners (BIP) manages a diversified portfolio of assets. Across Utilities, transportation, midstream and data sectors.
Brookfield made a quarterly distribution of $0.3825 per unit on December 29, 2023, reflecting a 6% increase from the prior year. On an annualized basis, BIP has a dividend yield of 4.9%.
Earlier this month, BMO Capital analyst Devin Dodge reiterated his buy rating on BIP stock, calling it one of his top ideas heading into 2024. He raised his price target to $40 from $38 to reflect the impact of easing long-term interest rates on his valuation. Method. He believes BIP’s valuation is compelling and expects its annual distribution to increase by more than 6%.
The analyst believes key growth drivers have the potential to generate low-double-digit increases this year and perhaps beyond, and expects BIP to deliver attractive operating capital accretion. . In fact, he believes there is room for unexpected upside compared to management’s forecast that FFO/unit growth will be more than 12% over the next 1-3 years.
Dodge also emphasized that Brookfield has a solid pipeline of new investment opportunities that are expected to generate returns above the company’s target range of 12% to 15%.
“In our view, BIP offers double-digit FFO/unit growth, attractive yields, attractive risk/reward backed by a strong acquisition pipeline, and potential rerating opportunities,” he said. “I will.”
Dodge is ranked #576 out of over 8,600 analysts tracked by TipRanks. His rating is that he is profitable 70% of the time, and the average return on each is 10.1%. (See his BIP insider trading activity on TipRanks)
key corp
Next is the local bank KeyCorp (keyThe bank reported a significant decline in fourth-quarter revenue due to charges related to a special assessment from the Federal Deposit Insurance Corporation and other one-time items.
The bank announced a dividend of $0.205 per share for the first quarter of 2024, payable on March 15th. This dividend reflects his 5.6% yield.
Following the results, RBC Capital analyst Gerald Cassidy said KeyCorp’s earnings per share, excluding one-time charges, beat his expectations and also beat consensus estimates. Cassidy reiterated his buy rating on KEY stock and raised his price target from $13 to $15.
The analyst said the bank’s net interest income outlook is inconsistent, causing stock price volatility. That said, he believes the bank will make a positive impression with its conservative credit management over the past five years as investor focus shifts to credit quality over the next 12 to 18 months.
Cassidy also noted that KeyCorp’s capital remains strong in the fourth quarter of 2023, with an estimated common equity tier 1 ratio of 10%, compared to 9.8% in the third quarter of 2023 and 9.1 in the comparable quarter of 2022. He pointed out that the increase was from %.
“Finally, KEY remains well-capitalized and expects higher levels of capital returns later this year and into 2025,” the analyst said.
Mr. Cassidy is ranked #122 out of over 8,600 analysts tracked by TipRanks. His rating is that he is successful 62% of the time, and the average return for each is 15.2%. (See his KeyCorp financial statements on TipRanks)
Onemain Holdings
This week’s third dividend stock is OneMain Holdings (OMF) is a financial services company that caters to the requirements of non-prime customers who have limited access to traditional lines of credit. OMF pays a quarterly dividend of $1 per share and offers an attractive yield of over 8%.
Deutsche Bank analyst Mark DeVries recently initiated a buy rating on OMF stock with a price target of $68, citing the company’s resilient business model.
Analysts believe that the recent period of rising inflation has been like a “mini-recession” for low-income households covered by the OMF. This means that the company is already facing a phase of worsening credit and stricter underwriting. According to the analyst, OneMain expects his credit situation to improve in the second half of 2024.
“Rising unemployment could put pressure on multiples, but we think the earnings power should hold up well given the richer dividend yield,” DeVries said.
The analyst said that despite paying a high dividend yield, OneMain is still generating excess cash and is making additional small and medium-sized business acquisitions, such as the recently announced deal with Foresight Capital. The company emphasized that it is considering a tuck-in acquisition.
Given that OMF is expanding into the non-prime personal loan space, which has a total addressable market of $100 billion, DeVries said the company is expanding into credit cards ($550 billion TAM) and autos (TAM $600 billion). ) and other new markets. ), is essential for continued growth.
Mr. DeVries is ranked #149 out of over 8,600 analysts tracked by TipRanks. His rating is that he is profitable 62% of the time, and the average return on each is 15.9%. (See his OneMain Holdings hedge fund activity on TipRanks)
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