NYPD Commissioner Dermot Shea discusses how the movement to defund the police is impacting the city.
NYPD Commissioner Dermot Shea discusses how the movement to defund the police is impacting the city.
With markets showing volatile movements in recent sessions – down one day, up the next – some of Wall Street’s analysts are showing a renewed interest in high-yield dividends. Not that they have ever shied away from these steady income generators; rather, the market boom of this past summer led the Street to focus on share appreciation as the source of profits. Market fluctuations since early September have analysts and investors both taking a closer look at defensive plays.The research analysts at JMP Securities have been searching the markets for the ‘right’ buys, and their picks bear a closer look. They’ve been tapping reliable, high-yielding dividend payers as an investment play of choice. The TipRanks database sheds some additional light on three of JMP’s picks – stocks with dividends yielding 7% or better – and that the investment firm sees with 20% upside or better. Annaly Capital Management (NLY)The first name on the list from JMP is Annaly Capital Management. The company inhabits the mortgage-backed security niche, with $104 billion in total assets, primarily mortgage securities backed by Freddie Mac and Fannie Mae. Annaly is one of the market’s largest REITs.The corona crisis was hard on Annaly, as the economic crush of the first quarter made it difficult for loan holders to make payments. As the economy bounced back in Q2, however, Annaly’s fortunes reversed and the steep losses from Q1 turned into modest gains. Q2 revenues came in at $979 million, with EPS, at 27 cents, beating the 23-cent forecast. Looking ahead, the forecast is a 26-cent EPS for Q3. It’s important to note that Annaly has beaten the earnings forecast in each of the past three quarters.Turning to the dividend, Annaly has remained a reliable dividend payer over the past several years, with a history of adjusting the payment to keep it sustainable. The current dividend is 22 cents per common share, and was paid out at the end of September; at that rate, the yield is 12.27%. In an era of near-zero rates from the Fed, NLY’s dividend return is sky-high.JMP analyst Steven DeLaney is impressed with NLY. The 5-star analyst pointed out, “The combination of dividends paid during the [second] quarter and the sterling book value gain—the company’s best quarterly gain since the Great Recession of 2008-09 [...] We believe NLY shares should trade at a meaningful premium to peers based on the company’s size, scale, and, now, its internal management structure."DeLaney rates the stock an Outperform (i.e. Buy) along with an $8.50 price target. This figure suggests a 20% upside potential from current levels. (To watch DeLaney’s track record, click here)Overall, there have been 8 recent analyst reviews of NLY shares, breaking down to 5 Buys and 3 Holds, giving the stock an analyst consensus rating of Moderate Buy. The $8.04 average price target implies a 13% growth potential from the current trading price of $7.10. (See NLY stock analysis on TipRanks)StoneCastle Financial (BANX)Next up, StoneCastle, is a management investment company, with a portfolio that includes moves into alternative capital securities and community banks. The company focuses its investment activity on capital preservation and current income generation, committing to returning profits to shareholders. StoneCastle’s investment portfolio totals over $133 million, of which 32% is credit securitization, 26% is debt securities, and 15% is term loans.During the second quarter, BANX saw over $2.6 million in net investment income, coming out to 41 cents per share. The company’s net asset value rose to $20.27 per share at the close of the quarter; that figure was $20.93 by September 30.BANX paid out a 38-cent quarterly dividend in Q2, a payment which the company has held up reliably – with one blip upwards in December 2018 – for the past three years. At $1.52 annually, the dividend yields an impressive 8%.5-star analyst Devin Ryan covers this stock for JMP, and he likes what he sees. “The company invested a healthy $36M during the [second] quarter, which included some higher yielding and more attractive securities, which drove the sequential increase in net investment income… Given a strong quarter of investing, particularly into attractive yielding securities, net investment income stepped up solidly in 2Q20. Moving forward, given the strong 2H20 outlook for deployment, we believe it is likely that net investment income will continue to move higher… BANX continues to more than cover its current quarterly dividend of $0.38, and we believe this will continue to be the case in the coming quarters,” Ryan opined. Ryan’s is the only recent review on record for this stock, which is currently selling for $18.15. He rates BANX an Outperform (i.e. Buy), with a $22 price target that indicates a possible 21% upside for the next 12 months. (To watch Ryan’s track record, click here)BRT Realty Trust (BRT)Last but not least is BRT Realty Trust, a real estate investment trust focused on multifamily properties. The company acquires, owns, and manages apartment dwellings, and currently boasts a portfolio of 39 properties across 11 states, totaling over 11,000 individual apartments. The company has felt a serious hurt from the ongoing corona crisis, and reported a net loss of 25 cents per share for the calendar second quarter this year. At the same time, BRT did manage to collect 98% of rents in Q2, and saw average occupancy remain above 93%. This bodes well for the company, as it does not have to carry and maintain empty or non-paying units.Also on a positive note, BRT kept up its dividend payment. The company has been gradually raising the quarterly payout for the past three years, and the current dividend, of 22 cents per common share, annualizes to 88 cents and gives a yield of 7.1%. This is more than triple the average yield found among S&P-listed companies, and more than double BRT’s dividend-paying peers in the financial sector.JMP’s Aaron Hecht sees BRT holding a solid position in its niche, writing, “With a lower price point product spread across Sunbelt markets, the BRT portfolio is generating strong results compared to peers with high-density urban market exposure... Rent growth averaged 2.2% for renewals and 0.2% for new leases, while minimal concessions were given. Rate growth and occupancy were similar in July and August 2020 compared with 2Q20.”Hecht rates the stock an Outperform (i.e. Buy), with a $15 price target that implies a one-year upside of 20%. (To watch Hecht’s track record, click here.)Overall, BRT has a Moderate Buy rating from the analyst consensus, based on an even split between Buy and Hold reviews. The stock is selling for $12.56, and the average price target of $13.25 suggests a modest gain of 5%. (See BRT 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.
President Donald Trump's trade war with China did not achieve the objective of boosting manufacturing in the U.S., the Wall Street Jornal reports.What Happened: Manufacturing activity in the U.S. has not reversed despite billions of dollars in tariffs to discourage importing Chinese manufactured goods.The trade deficit with China reduced in 2019. Still, the overall trade balance has soared to a record $84 billion in August as U.S. importers shifted to imports from Vietnam, Mexico, and other countries. Since the pandemic, China's trade deficit is back to where it was at the start of the Trump administration.The goal of reshoring factory production to the U.S. is unfulfilled as job growth in manufacturing slowed since July 2018, while the manufacturing activity peaked in December 2018.Why It Matters: Trump's trade advisers say that the tariffs of $370 billion on Chinese goods have succeeded in forcing China to agree to phase one trade deal in January and will end China's unfair practices over time. Industry analysis by the Federal Reserve shows that tariffs helped boost employment by 0.3% by protecting domestic industries exposed to cheaper Chinese imports.Those gains were more than offset by higher costs of Chinese imports due to tariffs, cutting manufacturing employment by 1.1% in the U.S. The retaliatory tariffs by China on the U.S. exports reduced domestic factory jobs by 0.7%.According to Peterson Institute for International Economics trade expert Chad Bown, President Trump is not the first to use tariffs to protect industries, but this is the biggest use of tariffs since the Great Depression.Image Courtesy: WikimediaSee more from Benzinga * Click here for options trades from Benzinga * European Markets Today: Indices Plunge On Fears Of New COVID-19 Restrictions Hurting Economy * AstraZeneca COVID-19 Vaccine Data Shows Promising Signs In Older Age Group: FT(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
When interest rates started to drop in the spring of 2020, my husband and I took notice. We watched as the rates on both fixed-rate and adjustable-rate mortgages continued to…
Robert Shiller, a Nobel Prize-winning economist and Yale University professor, urges investors to take a cautious approach to the top-heavy stock market in a recent op-ed for the New York Times.
Four years on from BHS's collapse, has the audit industry, criticised for not spotting problems, changed?
The Inspire Brands team looks to be nearing its latest big buy, Dunkin' Brands.
(Bloomberg) -- Jack Ma, the former English teacher who co-founded Alibaba Group Holding Ltd. with $60,000, is poised to become the world’s 11th richest person after Ant Group Co. priced shares for a record initial public offering.Ma’s 8.8% stake is worth $27.4 billion based on the stock pricing in Hong Kong and Shanghai. That will take the 56-year-old’s fortune to $71.6 billion on the Bloomberg Billionaires Index, exceeding that of Oracle Corp.’s Larry Ellison, L’Oreal SA heiress Francoise Bettencourt Meyers and individual members of the Waltons, whose family own Walmart Inc. Ant’s mammoth listing is poised to boost the fortunes of a group of early investors and employees. The company has granted staff share-based awards since 2014 and at least 18 other people have become billionaires from the IPO. Lucy Peng, a director at the payments giant, is the biggest individual Ant owner after Ma, and has a $5.2 billion stake. Chairman Eric Jing’s holding is worth $3.1 billion.Ant is set to raise almost $35 billion, beating Saudi Aramco’s $29 billion sale last year. The Shanghai stock priced at 68.8 yuan ($10.27) apiece and its Hong Kong shares at HK$80 ($10.32) each. The company could raise another $5.2 billion if it exercises its green shoe options, taking its market value to about $320 billion. That would be more than JPMorgan Chase & Co. and four times bigger than Goldman Sachs Group Inc.The big winners of the listing own their stakes through two limited partnerships registered in Hangzhou that together hold about 40% of Ant. Alibaba, in turn, has a third of the fintech firm. Hong Kong’s Li Ka-shing, the family behind a French supermarket giant, the son of a Taiwanese real estate billionaire and Chinese retail tycoon Shen Guojun are among the other owners who have invested in the company over the year.Ant began when Alibaba launched the Alipay payments app in 2004 as an escrow service for buyers and sellers on Ma’s e-commerce website. In 2013, they were given the ability to save money and earn interest on the balances stored on their accounts. The firm then started offering credit to small businesses, branching out from its consumer-finance focus, and eventually expanded to services such as block chain, cloud computing and artificial intelligence.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
SAP stock tumbled on Monday after the software maker slashed this year's revenue forecast and warned that the coronavirus emergency would hurt business in 2021. Oracle stock also fell.
Stocks pointed sharply lower Monday as new data showed a jump in COVID-19 cases in both the U.S. and Europe. Restrictions tightened across major countries overseas, raising the specter of a further pullback in business operations and deeper anchor on global economic activity.
Lee Kun-hee, who built Samsung Electronics into a global powerhouse in smartphones, semiconductors and televisions, died on Sunday after spending more than six years in hospital following a heart attack, the company said. Lee, who was 78, grew the Samsung Group into South Korea’s biggest conglomerate and became the country's richest person. "Lee is such a symbolic figure in South Korea's spectacular rise and how South Korea embraced globalisation, that his death will be remembered by so many Koreans," said Chung Sun-sup, chief executive of corporate researcher firm Chaebul.com.
Top news and what to watch in the markets on Monday, October 26, 2020.
Harry Markopolos is the former derivatives professional turned independent financial fraud investigator who uncovered the $65 billion Bernie Madoff Ponzi scheme, only to be ignored by the SEC for over nine years. A vocal critic of the US regulator, Harry now has the audit world and insurance industry in his sights as the next big financial frauds yet to come to light.
A stock sell-off turned into a rout midday Monday, with the Dow Jones Industrial Average diving 800 points as coronavirus cases spike in the U.S. and Europe.
The Dow Jones dived 700 points Monday morning, hurt by surging coronavirus cases in the U.S. and a profit and sales warning from SAP.
Mortgage rates dipped to another all-time low in the week ending 22nd October. Expect COVID-19 and U.S politics to continue to influence in the week.
Ant Group's dual initial public offering listings in Shanghai and Hong Kong will be the world's largest, Alibaba Group Holding Ltd (NYSE: BABA) founder Jack Ma said Saturday, as reported by CNBC. What Happened: The IPO was priced Friday night but Ma didn't spell out the numbers, which are due to be announced next week, according to CNBC."It's the first time that the pricing of such a big listing -- the largest in human history -- has been determined outside New York City," said Ma at the Bund Summit in Shanghai. The Chinese billionaire called the offering a "miracle," saying, "we didn't dare to think about it five years ago, or even three years ago."Ma also called for banking reforms and called for a new more inclusive universal banking system, to be based on big data, to be set up to aid small businesses and individuals.Why It Matters: The IPO of the Alibaba-backed company could generate nearly billion in proceeds, which would make it the world's biggest IPO ahead of Saudi Aramco's $29.4 billion. Aramco's Dec. 2019 offering had beaten Alibaba's to snatch the biggest IPO crown.Singapore's sovereign wealth fund, GIC Private Limited, could reportedly invest over $1 billion in the two listings. Existing Ant investor, Singapore's Temasek, has also expressed interest in the IPO, according to Reuters. Price Action: Alibaba shares closed nearly 1.2% higher at $309.92 on Friday and gained 0.11% in the after-hours session.See more from Benzinga * Click here for options trades from Benzinga * Quibi Shuts Down — The Idea Wasn't 'Strong Enough' Or 'Timing' Went Amiss, Says Leadership(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Dow futures stocks slump as coronavirus infection rates hit new records in Europe and the United States. In the last episode of Mad Money, Jim Cramer told viewers they need to proceed with caution in what will likely be a volatile week for stocks. TheStreet's Katherine Ross and Cramer are on Street Lightning discussed AMD and Nvidia, writing off GAP, and buying Mattel.
South Korea's Hyundai Motor Co said on Monday it swung to a net loss for July-September, missing market estimates by a wide margin, as costs related to engine quality issues and recalls smashed what would otherwise have been strong earnings. Hyundai, the world's fifth-biggest automaker when combined with affiliate Kia Motors Corp, reported a net loss of 336 billion won ($297.72 million). The years-long quality problems have cost Hyundai and Kia nearly $5 billion and left the pair subject to a probe by U.S. authorities over the manner of their recalls.
IRARewards.com is being launched by BPAS, the retirement plan administration arm of Community Bank System (CBU) a regional bank valued at $3.2 billion and with $13 billion in assets, and EvoShare, a financial technology company. Set up an IRA with BPAS, download a “browser extension” from EvoShare, connect your accounts, and off you go. “Anything from yoga studios to restaurants—any brick and mortar store can opt in to this network,” says PBAS spokesman Brian Douglas.
The Dow dived more than 300 points on a jump in coronavirus cases Monday. Microsoft and Tesla are testing a key support level.