|Bid||15.19 x 1000|
|Ask||15.20 x 3100|
|Day's Range||15.06 - 15.21|
|52 Week Range||12.06 - 15.38|
|Beta (5Y Monthly)||0.61|
|PE Ratio (TTM)||N/A|
|Earnings Date||Feb 04, 2020|
|Forward Dividend & Yield||1.60 (10.46%)|
|Ex-Dividend Date||Dec 29, 2019|
|1y Target Est||15.22|
Two Harbors Investment Corp. Announces Earnings Release and Conference Call for Fourth Quarter 2019 Financial Results
Investors looking for a strong return can choose one of two main strategies: they can seek out stocks with high share price appreciation, or they can look for high dividends.Dividends are profit sharing payments sent out to stockholders. Companies have a variety of reasons for paying them, ranging from simply sweetening the pie to attract investors to compliance with tax law. But whatever the motive behind them, dividends are cash in the investor’s pocket.Companies usually make the payments quarterly, and they are analyzed by several metrics. The payment, of course, is the cash sent out. It can be stated as a quarterly or annualized sum. The yield is the annualized sum as a percentage of the share price – or, how much of the stock value is paid back to investors. Among S&P listed companies, dividend yields average near 2%. The payout ratio is the quarterly payment as a percentage of quarterly earnings, and is a measure of the dividend’s sustainability. Obviously, investors like high ratios, but if the ratio is too high a company simply cannot afford it.With all of that in mind, we’ve opened up the Stock Screener tool from TipRanks, a company that tracks and measures the performance of analysts, to find stocks with high dividend yields. Setting the screener filters to show stocks with "strong buy" consensus rating and a high dividend yields exceeding 5% gave us a manageable list of stocks. We’ve picked three to focus on.Two Harbors Investment (TWO)Real estate investment trusts (REITs) are companies formed to buy, own, and manage various forms of real property – residential and commercial real estate – and to derive income from them. Investors provide the capital needed for purchases, and tax regulations require the companies to pay back a high percentage of income to shareholders. That last is the reason behind the high dividend yield offered by REITs like Two Harbors. It is not unusual to find an REIT with a payout ration that occasionally exceeds 100%.Two Harbors owns both real properties and mortgage-backed securities, with a focus on residential properties. Ownership of both properties and mortgages is a hybrid strategy in the sector, designed to minimize the risks attached to either one, while maximizing income from varied streams. TWO has leveraged the hybrid strategy to build a steady revenue stream, which at $58.66 million beat the forecasts in the third quarter.That revenue translated to an EPS of 24 cents, a 33% miss of the forecast, and down 50% yearly. Despite the low quarterly results, the company maintains its dividend, per compliance with tax law, at a high 40 cents per quarter. The annualized payment, $1.60, puts the yield at 10.96%, more than 5 times the S&P average. TWO has a history of adjusting the quarterly dividend to ensure that it can meet the obligation, even with a high payout ratio.Wall Street’s analysts are bullish on TWO’s ability to maintain both its revenue stream and its dividend payment. Writing from Credit Suisse shortly after meeting with TWO management earlier this month, 4-star analyst Douglas Harter said, “The meeting highlighted the attractive returns available to TWO in Agency MBS and MSR. In the short-term, some of this return will be recognized in terms of gains and not through core earnings. The company’s track record of delivering economic return gives us confidence in the strategy despite the near-term core earnings shortfall.” In line with his optimism on TWO, Harter gave the company a Buy rating with a $14.50 price target. In recent days, TWO stock has surpassed that target. (To watch Harter’s track record, click here)Jason Weaver, of Compass Point, agrees that TWO is a buying proposition. He writes, “In our view, the company offers a streamlined portfolio with attractive risk/reward characteristics in the current market environment, with sufficient ROE generation capacity to sustain the current dividend and grow book value over the long run.” Weaver’s $15.20 price target suggests a modest upside to the stock, of 4.1%, which is compensated for by the high dividend yield. (To watch Weaver’s track record, click here)Two Harbors stock has shown gains this year, although at 14.5% those gains have underperformed the overall markets. The shares get a Strong Buy from the analyst consensus, based on 6 reviews that include 5 Buys and 1 Hold. The average price target, of $15.20, matches analyst Weaver’s, above. (See Two Harbors price targets and analyst ratings on TipRanks)MPLX LP (MPLX)REITs are not the only place to find great dividend yields. The energy industry may get a bad rap from environmentalists and conspiracy theorists, but it typically gets a thumbs up from investors. As an industry, it tends to drip cash, and energy companies are well known for paying out, over the long term, high dividends. MPLX, a spin-off partnership of Marathon Petroleum which maintains a controlling interest, is no exception.MPLX primarily handles midstream operations. The company has an array of assets, from pipelines to inland river shipping to oil and gas terminals to refinery storage, along with loading and dock facilities. In effect, Marathon shrugged off its product transport and created a company – MPLX – to handle that aspect of the business. It allows both companies to sharpen their focus and operate more efficiently.Midstream is not MPLX’s only area of operation. It also has a significant natural gas business, with gathering and extraction systems. These operations produce industrially important natural gas derivatives such as ethane, ethylene, butane, propane, and propylene. MPLX also handles transport of these products.MPLX has been a profitable endeavor, on its own and for parent company Marathon. Q3 presents a good example. MPLX beat the forecasts on both revenue and EPS, with total sales coming in at $2.28 billion against the estimated $2.24 billion. EPS, at 61 cents, beat the forecast by 3.3%. The company announced a dividend for the quarter, of 67.5 cents per share, which annualized to $2.71 and yields 10.66%. Even better for investors, MPLX has a history of gradually raising the dividend payment; it was 59 cents in November 2017, and has gone up 1 cent every quarter since.Michael Blum, 4-star analyst from Wells Fargo, reviewed MPLX and set a Buy rating on the stock. Of his $36 price target, he writes, “Our price target is based on a blend of (1) a three-stage distribution/dividend discount model, which assumes a required rate of return of 9% and long-term growth rate of 0.5%, (2) a 2021E EV-to-EBITDA multiple of ~11x, and (3) a sum-of-the-parts valuation based on our 2021 forecast.” The target implies an upside of 41% for MPLX shares. (To watch Blum’s track record, click here)MPLX sells for an affordable price, just $25.43, making it a fine option for investors seeking both high upside and high dividends. The average price target, $31.75, indicates room for 24% growth in the coming year. The shares’ Strong Buy analyst consensus comes from 6 Buys and 2 Holds given in recent months. (See MPLX’s stock analysis at TipRanks)Brigham Minerals (MNRL)By this time, we all know about the huge successes of the US oil extraction industry in the past decade. The US has become the world’s single largest producer of crude oil, and in September 2019, for the first time since WWII, the US exported more oil and oil products than it imported. In short, energy is a big and growing business in the US.That business has to start somewhere, and that’s where companies like Brigham Minerals come in. Brigham is an acquisition company, buying oil and gas mineral rights in the western US. The company’s main properties are located in the Delaware and Midland basins Texas and the Bakken region in North Dakota – some of the most productive oil and gas fields in the US. MNRL also has extensive interests Oklahoma, Colorado, and Wyoming.The value of MNRL’s acquisitions can be seen by the company’s Q3 revenues. Total income, at $25.11 million, beat the estimate by 1.4%. EPS, however, was down at 6 cents per share. Volatility is somewhat to be expected, as MNRL only started trading in April of this year. Management was unfazed by the lower EPS and announced a dividend of 33 cents. It was the company’s second quarterly dividend and equaled the previous payout. The dividend annualized to $1.32 per share and gives a yield of 6.3%. While lower than the stock above, this is still more than triple average dividend among S&P companies, and three and a half times higher than the Federal Reserve’s key rate.5-star analyst T J Schultz, writing from RBC Capital, was impressed enough with MNRL’s position to reiterate his Buy rating. He says of the stock, “MNRL’s superior acreage position and strong counterparty producers are expected to drive >25% production growth in 2020. We think this level of production growth can translate into double digit dividend growth with >1.1x coverage. Furthermore, a strong balance sheet provides optionality to flex growth higher in 2020 via acquisitions.” Schultz puts a $25 price target on MNRL, suggesting an upside of 18%. (To watch Schultz’s track record, click here)Overall, MNRL gets a good rap from Wall Street. The company has a Strong Buy consensus rating, based on 3 recent Buy reviews. The average price target, $25, matches Schultz’s, giving the stock a robust potential. Combined with the high dividend and the 21% gain since MNRL started trading, and the upside is clear. (See Brigham Minerals price targets and analyst ratings)
Two Harbors Investment Corp. Announces Conversion Rate Adjustment for its Convertible Senior Notes Due 2022
Tom Siering became the CEO of Two Harbors Investment Corp. (NYSE:TWO) in 2009. This analysis aims first to contrast...
Two Harbors Investment Corp. Announces Fourth Quarter 2019 Common and Preferred Stock Dividends
We are still in an overall bull market and many stocks that smart money investors were piling into surged through the end of November. Among them, Facebook and Microsoft ranked among the top 3 picks and these stocks gained 54% and 51% respectively. Hedge funds' top 3 stock picks returned 41.7% this year and beat […]
While we see less upside to the third quarter (total comps below consensus and earnings per share only in line), Lowe’s relative valuation versus its closest peer is near its trough level, industry demand is improving (modestly), and there are multiple sales/margin levers ahead. We downgraded the home-improvement space just over a year ago on concerns over slowing home-price appreciation and rising interest rates, which we expected to pressure comps. Lowe’s is not.
The market is making moves, and investors are taking notice. As we near the end of third quarter 2019 earnings season, Savita Subramanian of Merrill Lynch stated that following better-than-expected results, there appears to be a renewed sense of optimism.According to the analyst, companies that have already reported earnings have taken a "much more optimistic tone than in recent quarters," with 43% of companies using the word "optimistic" or "optimism" during their releases. This is up from the average of 37% in the two preceding quarters.So how can investors best take advantage of this renewed economic outlook? Wall Street pros suggest adding names capable delivering stable payouts, or more specifically dividend stocks. However, not all dividend stocks represent compelling investments as some boast significantly higher yields than others.InvestorPlace - Stock Market News, Stock Advice & Trading TipsBearing this in mind, I used the TipRanks Stock Screener to zero in on seven dividend stocks to buy that consistently pay out over a 9% yield. This isn't too shabby when you compare it to the S&P 500's fiscal Q2 2019 average dividend yield of 1.92%. * 10 Stocks to Buy Regardless of Q3 Earnings Let's take a closer look. Stocks to Buy: Energy Transfer (ET) Source: Shutterstock Dividend Yield: 10%Energy Transfer, L.P. (NYSE:ET) is one of the largest and most diversified midstream energy companies in the U.S. After the company's Nov. 6 third-quarter earnings release, all eyes are on ET.Top analyst, RBC Capital's Elvira Scotto, believes that the company is on track to achieve an approximately 4.5x debt-to-EBITDA by the end of this calendar year. This is expected to be achieved through ramping up cash flows from Rover, Revolution, ME2/2X and several other growth projects as well as distribution payments slated for the end of 2021."With its slate of large-scale, primarily fee-based growth projects coming online and ramping, we expect cash flow growth to drive leverage meaningfully lower in the coming years, which should allow ET to return more cash to shareholders," she commented.This lends itself to her conclusion that ET will continue to reward investors with a stable dividend. We mean an annualized payout of $1.22 per share, which amounts to a yield of 9.7%. Based on all of the above, the five-star analyst predicts shares could soar 88% in the next twelve months.As seven Buy ratings have been assigned vs no Holds or Sells in the last three months, the message is clear: ET is a Strong Buy. Not to mention its $21 average price target brings the upside potential to 70%.See the ET stock analysis. MPLX (MPLX)Source: Shutterstock Dividend Yield: 11%Formed by Marathon Petroleum (NYSE:MPC), MPLX, L.P. (NYSE:MPLX) owns and operates energy logistics and infrastructure assets as well as provides fuel distribution services.Coming on the heels of its third-quarter earnings and sales beat, MPLX appears primed to deliver massive returns. Net income attributable to MPLX came in at $629 million, up from $510 million in the prior-year quarter. Adding to the good news, further gains are expected to be fueled by its Andeavor Logistics acquisition which was finalized at the end of July.CEO Gary R. Heminger added, "Additionally, we moved forward with high-grading our growth capex portfolio and today announced a growth capital target of approximately $2.0 billion for 2020."As management has outlined a clear growth path, MPLX is likely to remain a high dividend payer, or 10.3% annualized to be exact.With this in mind, RBC Capital analyst TJ Schultz maintained his bullish thesis. While he did lower the price target from $38 to $33, the five-star analyst still sees 31% upside potential in store for the energy company.Like Schultz, the rest of the Street is optimistic about MPLX. Seven Buy ratings and one Hold received over the last three months add up to a Strong Buy analyst consensus. Its average price target of $34 suggests shares could surge 33% in the next year. * 7 of the Best Internet Stocks to Buy See the MPLX stock analysis.To learn more about dividend stocks, Neil George is selling special access to his book Income for Life: 65 Income Streams ANYONE Can Collect for just $1. New York Mortgage (NYMT)Source: Shutterstock Dividend Yield: 13%New York Mortgage Trust, Inc. (NASDAQ:NYMT) manages a portfolio of assets with the goal of delivering stable returns to its clients. The real estate investment trust (REIT) invests in and manages mortgage-related assets. That being said, its strength as a dividend stock makes it a stand out.We aren't talking chump change here. NYMT has consistently rewarded investors with an $0.80 annualized payout, putting the dividend yield at 12.8%. This is nothing short of impressive when you consider the financial sector average of 0.04%.According to Maxim Group analyst Michael Diana, the company's focus on book value and credit strategies has the potential to cement NYMT's status as a reliable profit generator and dividend name. "In our view, NYMT deserves a premium valuation to the group due to its strong track record of preserving book value and its focus on credit strategies in an environment which we regard as favorable for credit strategies," he explained.In general, the opinion on the Street is more mixed. Its Moderate Buy consensus rating comes from the 1 Buy and 1 Hold NYMT racked up in the previous three months. However, shares could rise 14% in the next twelve months.See the NYMT stock analysis. Two Harbors (TWO)Source: Shutterstock Dividend Yield: 11.3%Like NYMT, Two Harbors Investment Corporation (NYSE:TWO) is an REIT, with its primary focus being residential mortgage-backed securities (RMBS). While it faces steep competition in the financial sector, the company has the advantage thanks to its limited sensitivity to interest rates. Louis Navellier, a legendary investor in his own right, calls stocks like these "bulletproof stocks" and you can learn more about them here."Two Harbors is a hybrid mortgage REIT with less rate sensitivity due to differentiated agency MBS/MSR pairing strategy along with a unique, legacy credit-oriented portfolio," RBC Capital analyst Kenneth Lee explained. This reasoning played into Lee's decision to start coverage with a bullish call and set a $15 price target.Given its ability to generate profits regardless of the current macro backdrop, it's a positive sign that TWO can continue to hand over a hefty dividend payout. We're talking 40 cents paid out each quarter, bringing the annualized sum to $1.60 per share or an 11.5% yield.Looking at the analyst consensus breakdown, the rest of the Street has high hopes for TWO. Factoring in the three buys assigned over the last three months, the stock earns Strong Buy status. * 7 Stocks to Buy That Save You Money See the TWO stock analysis. Oasis Midstream Partners (OMP)Source: Shutterstock Dividend Yield: 11.4%Oil and gas producer Oasis Midstream Partners L.P. (NYSE:OMP) has captured Wall Street's attention after its Nov. 5 third-quarter earnings release.Investors were happy to learn that quarterly cash distribution gained 5% from the preceding quarter. Adding to the good news, OMP signed additional third-party agreements in the Delaware and Williston Basins as well as saw solid water service volumes.However, its 11.4% dividend yield caught my eye. OMP has been reliably paying out 49 cents per share each quarter, adding up to a $1.96 annualized payout. With a payout ratio of 61.7%, the energy company is poised to continue delivering big rewards to investors.All of this supports RBC Capital analyst TJ Schultz's assumption that OMP's growth narrative remains strong. While he did cut the price target from $25 to $22, the upside potential still comes in at 20%.In general, other analysts echo Schultz's sentiment. On top of garnering Strong Buy status, its $23 average price target puts the potential twelve month gain at 23%.See the OMP stock analysis. Ellington Financial (EFC) Source: Shutterstock Dividend Yield: 9%Ellington Financial Inc. (NYSE:EFC) is a specialty finance company serving clients located throughout the U.S. With EFC on track to raise its already impressive dividend, it's no wonder investors have been captivated by this stock.Even though some had originally expressed concerns regarding how EFC's transition to a REIT would impact its ability to hand out consistent payments, one top analyst is reassuring investors."We believe that EFC's recent conversion to a REIT, combined with our projected growth from its diversified business model, should lift the stock to a premium to its forward book value and in line with its core Mortgage REIT peer group. In addition, EFC is positioned to raise its dividend as its credit businesses grow, ROEs on its agency MBS strategy pick up, and REIT taxable income requirements increase distributions to shareholders," Nomura's Matthew Howlett commented.This is incredibly exciting news as the financial services company has already been steadily paying out $1.68 per share on an annual basis, or a 9% yield.All of the above factors prompted Howlett to start his EFC coverage by publishing a bullish call. Not to mention the four-star analyst's $20 price target implies shares could jump 9% in the next twelve months.Based on its 100% Street approval, EFC is a Strong Buy. The potential upside of 9% should also be taken into consideration. * 10 Stocks That Every 30-Year-Old Should Buy and Hold Forever See the EFC stock analysis. Black Stone Minerals (BSM) Source: Shutterstock Dividend Yield: 11.3%This oil and natural gas company has a lot to brag about. Not only does Black Stone Minerals, L.P. (NYSE:BSM) have a Strong Buy consensus rating and upside potential of 45%, but it also boasts a noteworthy dividend.Besting the basic materials sector average of 0.04%, BSM's yield comes in at 11.3% as a result of its $1.48 annualized payout per share. With a strong third-quarter performance under its belt, its ability to continue paying out these substantial sums looks secure.According to its Nov. 4 earnings release, production during the quarter reached 49.0 MBoe/d driven by a 14% year-over-year increase in royalty production. BSM also purchased $2.3 million-worth of properties in East Texas in the quarter, bringing total 2019 acquisition-related spending to $43.9 million.If this wasn't compelling enough, BSM has racked up substantial Wall Street support in the last three months. This includes the likes of JonesTrading analyst Eduardo Seda."We note that BSM had recently raised its production guidance for full-year 2019 to a range of 47.5 MBoe/d to 50.5 MBoe/d, a 5% increase midpoint to midpoint from prior guidance," the four-star analyst commented. With this in mind, he reiterated his Buy recommendation and $22 price target, indicating 69% upside from the current share price.See the BSM stock analysis.Legendary investor Louis Navellier has opinions of his own. Louis believes investors should buy bulletproof stocks that can thrive in any market.To prepare for a shifting market, Louis suggests steps that every investor should take right now:* Follow the money: Buy stocks that are seeing massive cash infusions.* Protect your portfolio: Invest in market-beating stocks with Louis' simple trick.* Go risk-off: Strong fundamentals are more paramount than ever.Louis' track record is enviable and stocked with winners, including the following: * 274% gain in semiconductor stock Nvidia * 134% gain in defensive plays * 123% gain in a personnel service stockTo learn how to invest in this shifting market, and to recieve Louis' top stock picks, click here.TipRanks offers investors the latest insight into eight different sectors by tracking the activity of over 5,000 Wall Street analysts. As of this writing, Maya Sasson did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Stocks to Sell Before They Roll Over * 5 Beaten-Up Stocks to Buy That Could Be Saved By An Acquisition * 4 Startup Stocks Getting Smashed The post 7 Buy-Rated Stocks With Dividend Yields Over 9% appeared first on InvestorPlace.
Two Harbors Investments (TWO) delivered earnings and revenue surprises of -33.33% and 0.45%, respectively, for the quarter ended September 2019. Do the numbers hold clues to what lies ahead for the stock?
Two Harbors Investments (TWO) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
Although the masses and most of the financial media blame hedge funds for their exorbitant fee structure and disappointing performance, these investors have proved to have great stock picking abilities over the years (that's why their assets under management continue to swell). We believe hedge fund sentiment should serve as a crucial tool of an […]
Two Harbors Investment Corp. , a leading hybrid mortgage real estate investment trust, announced today that it will release financial results for the quarter ended September 30, 2019 after market close on November 5, 2019.
For many, the main point of investing is to generate higher returns than the overall market. But the main game is to...
The markets are volatile these last few months, with S&P 500 seeming unable to hold onto its gains, slipping 3.5% from its July 26 peak of 3,025 and swinging 100 points or more four times since the beginning of August. The rapid-fire shifts have investors yearning for stability – after all, investing is about making a profit, and profits are more likely in a stable, upward-trending environment.Fortunately, some stocks are prepped to deliver profits whether the markets go up or down. Dividends represent income for shareholders, paid out regardless of general market conditions, and there are plenty of stocks out there which pay out handsomely.We’ve used TipRanks’ Stock Screener to search the market for Strong Buy-rated investments with reliable high-yield dividend payouts – and a low cost of entry. With these attributes, a profit-minded investor will have to look twice.New Residential Investment (NRZ)Our first stock to look at, and the one with the highest-yielding dividend, is a real estate investment trust – a company that owns various properties and uses them to generate income. Under US tax law, these companies are heavily incentivized to pay out 90% or more of their income in the form of dividends. This makes the REIT a go-to stock sector for profit-oriented investors.Based in New York, New Residential operates across the real estate industry, with portfolio holding in mortgage servicing, real estate securities, residential and commercial loans, and corporate properties. The company’s holdings total over $600 billion in value, and generate more than $960 million in net income from $2.37 billion in annual revenues.The recent interest rate reductions by the Federal Reserve have impacted NRZ’s bottom line, as the company is heavily invested in the mortgage sector. However, like most REITs, New Residential has a high cash flow and can easily maintain its dividend payment. At $0.50 per quarter, that payment may look small – but the stock is priced at just $14.98, making the annual dividend yield a robust 13.35%. For comparison, the average stock on the S&P 500 yields a 2% dividend.NRZ’s profit potential has drawn positive attention from Wall Street’s analysts. Initiating coverage of the stock with a Buy rating, BTIG’s Giuliano Bologna wrote, “…we believe investors should focus on NRZ’s unique portfolio of assets, the buildout of recapture capabilities and ancillary services that should improve the overall return…” Referring to the company’s dividend and cash flow, he added, “We believe NRZ has sufficient cash flow to maintain the company’s quarterly dividend of $0.50 and will benefit from additional cash flow contribution from call rights and the securitization/sale of originated loans during 2H19.” In line with his bullish outlook, Bologna set an $18 price target on the stock, indicating confidence in a 20% upside. (To watch Bologna's track record, click here)Furthermore, Piper Jaffray’s 5-star analyst Kevin Barker also gave this stock a Buy rating. He said in his note, “…slight pressure to New Residential's tangible book value in Q3 is more than priced into the shares. Further, recent acquisitions are further evidence New Residential will continue to build out an operating company that will attempt to squeeze out revenue from all touch points on its large portfolio.”Overall, New Residential has a Strong Buy rating from the analyst consensus. This is derived from 4 buys assigned in the last two months – so the consensus is unanimous. As indicated above, the stock sells for $14.98. The average price target is $18, which implies room for 20% upside growth. (See NRZ stock analysis on TipRanks)Two Harbors Investment (TWO)Two Harbors, like NRZ above, is a real estate investment trust. TWO manages the natural risk of the real estate market by diversifying its portfolio – the company is considered a hybrid REIT, meaning it holds both properties and mortgages among its assets. This strategy mitigates risk for the company while bringing the benefits of two separate income streams.The success of Two Harbors’ hybrid strategy can be seen in the company’s results. It reported $201 million net income in the last quarter. Two Harbors CEO Thomas Siering said, “Our strong return on book value was driven by our acute focus on portfolio positioning and hedging. Additionally, improvements in financing continue to present a long-term opportunity for our business…”Along with its solid income, TWO continued to pay out its regular dividend. At $1.60 annualized, the quarterly payment is 40 cents – but that comes from a share price of $13.31, making the yield 12.02%, or six times the S&P average. Two Harbors has been raising its dividend steadily over the past two year, and the payout ratio – which compares the annualized dividend to the annual EPS – is an impressive 84.7%.All of this has brought RBC Capital analyst Kenneth Lee to reiterate his Buy rating on this stock. Publishing his comments on October 2, Lee said, “Two Harbors [has] less rate sensitivity due to differentiated agency MBS/MSR pairing strategy along with a unique, legacy credit-oriented portfolio. Given the current macro backdrop and our preference for credit-oriented REITs, we are initiating coverage with an Outperform rating…” Lee gives TWO a $15 price target, implying an upside potential of 12%. (To watch Lee's track record, click here)Lee is not the only analyst impressed by Two Harbors. The company’s Strong Buy consensus rating comes from 3 "buy" and "1" hold give in the last three months. And at $14.75, the average price target suggests an upside of 10% over the $13.31 current share price. (See Two Harbors stock analysis on TipRanks)Falcon Minerals (FLMN)With our third high-yield dividend stock, we are leaving the real estate market and entering the energy industry. Falcon Minerals is a small-cap oil & gas company operating in the Eagle Ford Shale of south Texas. While overshadowed by the Permian Basin, also in Texas, the Eagle Ford Shale is known to be an oil-rich and gas-rich formation. A study sponsored by University of Texas San Antonio indicates that the formation may support as many as 5,000 new wells by 2020, which will bring up to 68,000 jobs to the region and have a potential $21 billion impact on the regional economy. And Falcon owns mineral rights in the core of the formation.In addition to owning mineral rights, Falcon also has active wells drilling in the area. We can note here that, at over 11 million barrels per day, the US is now the world’s largest crude oil producer. Texas is the largest oil-producing state, putting Falcon in the epicenter of the world’s oil markets.They don’t call oil ‘black gold’ for nothing. Falcon reported a $13.4 million free cash flow in the second quarter, and a net income of $8.9 million. It was more than enough to support the 15-cent quarterly dividend – which translated to a yield of 10.95% annualized. Even better, Falcon has 107 wells drilled and waiting on completion. In the Q2, the company averaged 9 active wells; with 12 times as many waiting in the wings, the company’s income outlook is impressive.Building on this background, analyst Jeff Grampp of Northland gives FLMN a Buy rating, saying, “The long-term outlook is positive with activity levels trending up, smaller acquisitions continuing at a healthy clip and Hooks Ranch wells now being drilled… Activity levels on FLMN's acreage are trending higher. 11 rigs are currently operating on FLMN acreage, up from the nine rig average in 2Q19 and five rigs rig average in 1Q19.” Grampp puts a $7.50 price target on this stock, implying a strong upside of 36%.Falcon has an overall analyst consensus of Strong Buy, based on 3 buys and 1 hold set in the last three months. The stock is a bargain price, at $5.48, as the $8.38 average target suggests an impressive potential upside of 52%. (See Falcon Minerals stock analysis on TipRanks)
Real estate investment trusts offer some of the highest yields in the market. Maybe the best part about these investments is that they're legally required to distribute at least 90% of their earnings to ...
This conversion rate adjustment is being made pursuant to the supplemental indenture governing the Notes as a result of the company’s previously announced third quarter 2019 common stock cash dividend of $0.40 per common share. Effective immediately after the close of business on September 30, 2019, the new conversion rate for the Notes will be 63.1793 shares of common stock per $1,000 principal amount of the Notes. Currently, the conversion rate for the Notes is 63.1518 shares of common stock per $1,000 principal amount of the Notes.
We often see insiders buying up shares in companies that perform well over the long term. The flip side of that is...