Feb.12 -- Dan Ives, Wedbush Securities managing director, discusses the objections by big tech companies toward Nvidia Corp.'s acquisition of Arm. He speaks with Taylor Riggs on "Bloomberg Technology."
Feb.12 -- Dan Ives, Wedbush Securities managing director, discusses the objections by big tech companies toward Nvidia Corp.'s acquisition of Arm. He speaks with Taylor Riggs on "Bloomberg Technology."
Borrowers are backing off, and mortgage demand is falling — but what if rates go higher?
Having guaranteed income after retirement is undeniably appealing. However, there are a number of risks to consider before rolling your 401(k) into an annuity.
It's true: Getting your tax return in quickly could put your relief money at risk.
(Bloomberg) -- Li Ka-shing, Hong Kong’s richest property tycoon, is planning to raise funds for dealmaking by listing a special purpose acquisition company in the U.S., people with knowledge of the matter said.A company backed by Li’s family is working with advisers on the potential SPAC initial public offering, according to the people, who asked not to be identified because the information is private. They are considering seeking around $400 million, though the exact terms haven’t been finalized, the people said.The blank-check company could file registration documents with the U.S. Securities and Exchange Commission as soon as this week, the people said.Li is lionized by the public in Hong Kong, where he’s been nicknamed “Superman” for his investing prowess. The 92-year-old businessman became famous for his well-timed bets on everything from real estate to social media as he built a corporate empire spanning 50 countries.His family controls CK Hutchison Holdings Ltd., a $29 billion conglomerate that owns one of the world’s biggest port operators and has telecommunications, retail and infrastructure operations across Asia and Europe. They also run CK Asset Holdings Ltd., which is one of Hong Kong’s largest developers and also has investments in hotels, utilities and aircraft leasing. Both companies are now led by Li’s elder son, Victor.No final decisions have been made, and details of the transaction could change, the people said. Representatives for Li didn’t immediately respond to emailed queries.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
A question that has long bedeviled bitcoin observers is how to value it. Lately the answer to its worth has been whatever influential people like Elon Musk and star stock picker Cathie Wood say it is. The original crypto asset bounced around this month as influencers weighed in.
(Bloomberg) -- Robinhood Markets Chief Executive Officer Vlad Tenev went into his interview with Dave Portnoy looking forward to discussing Bulgarian pizza. Within the first few minutes of their chat, he was called a “rat” by the brash Barstool Sports founder.The insults continued throughout their 40-minute livestreamed discussion on Tuesday night. Portnoy played an edited video that depicted Tenev as a clown, told him that everyone watching “hates your guts” and branded the CEO’s hairstyle at a government hearing last week as “ridiculous.”The source of the acrimony was Robinhood’s decision to curb trading last month during the mania over “meme” stocks such as GameStop Corp. Portnoy, a cult figure for individual investors who follow the mantra that “stocks only go up,” has previously said that he lost about $700,000 after selling his “meme” stock holdings during the market slide that followed Robinhood’s clampdown.The brokerage’s move was a precautionary measure that was necessary, Tenev told Portnoy on Tuesday. “We very likely could have faced a liquidity issue in the future,” he said. “We had to act to protect the firm and our customers.”Portnoy pressed the CEO on why the company failed to allow customers to freely trade and communicate the issues it was facing more clearly. He also asked why Robinhood hadn’t provided more transparency on its liquidity situation.“The L word is a big thing in financial services,” Tenev said. “‘Liquidity issue’ means you can’t meet your capital requirements or your deposit requirements, and you’re essentially dead. That was not the case with Robinhood. We met our capital requirements, we met our deposit requirements.”Those explanations seemed to do little to assuage Portnoy, who has accused Tenev of siding with Wall Street and against individual investors.“You know everybody watching this hates your guts right,” Portnoy said Tuesday.“That’s what I hear,” Tenev responded.Portnoy told Tenev that the no-fee brokerage turned its back to its customers and “killed the little guy” by causing stocks to crater. When he pressed Tenev on why Robinhood didn’t also restrict the selling of shares to freeze the market, the executive responded it was to protect long positions.Tenev said the decision to restrict trading was to meet deposit requirements for clearinghouses and once again that there was no collusion between Robinhood and any hedge fund or market maker. He told Portnoy that until recently he hadn’t heard of Melvin Capital Management, which lost billions closing out its GameStop position and reducing other wagers.Still, the brokerage was witnessing “incredible growth” because of the hype. It was the first time that something going viral on social media transplanted over to the financial markets, and the structure of the system has to be improved to prevent any future scandals, Tenev said.By the end of the interview, the Robinhood CEO, who was wearing a hat that read “Taco Tuesday” on it, said he only wore the hat to cover his hair because Portnoy had made fun of it during the GameStop House Financial Services hearing last week.“Vlad, your hair, it looks normal here,” Portnoy said. “It looked like, your scalp, somebody took a wig and put it on, I mean it was a ridiculous look.”For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
Veteran dealmaker Michael Klein and his partners have made a paper gain of nearly $3.3 billion on their $43 million personal investment in the blank-check acquisition firm they are merging with luxury electric vehicle startup Lucid Motors Inc, according to Reuters calculations. The gain, within just a few weeks, came from the meteoric rise in the shares of Klein's special purpose acquisition company, SPAC Churchill Capital IV Corp. It is by far the most striking example of a Wall Street insider benefiting from the amateur trading frenzy in shares such as GameStop Corp, sweeping the world of SPACs. Many mom-and-pop investors bought Churchill Capital IV shares hoping for a quick gain, pushing Lucid's implied valuation from $11.75 billion at its nominal deal price to $56.3 billion at Tuesday's closing price.
(Bloomberg) -- Novo Integrated Sciences Inc., a stock controlled by a family trust tied to its chief executive, surged as much as 276% on Wednesday, a day after it switched trading to the Nasdaq.“The uplist to the Nasdaq Capital Market creates the opportunity for the company to have more visibility from a much broader pool of investors and, in turn, increased liquidity,” Robert Mattacchione, the company’s CEO, said in a statement earlier this week.Mentions of the penny stock picked up steam on Twitter and more than 3 million shares traded hands in the first 15 minutes of trading. The stock had climbed as high as $42 in the premarket after closing at $3.99 on Tuesday. Novo’s largest holder, the Mattacchione family trust’s ALMC-ASAP Holdings, had a 54% stake as of Feb. 19, according to Bloomberg data.Novo was formed in 2017 by the merger of Turbine Truck Engines, an over-the-counter-traded clean energy technology company, and Canadian clinic operator Novo Healthnet Ltd. Stocks with a low amount of tradeable shares, in Novo’s case about 5.5 million, can be particularly volatile and are often the target of daytraders.Novo director Robert Oliva picked up more than 9,000 shares earlier this week at $4.31 to $4.45 each, according to a filing.(Updates share moves throughout, adds chart.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
We’re in a volatile period right now, as stocks slipping after starting the year on a strong note. Big Tech, which boomed during the pandemic lockdowns and the move to remote work, is leading the declines. Investors have taken the measure of the vaccination programs, and now, in fueled by both a belief and a hope that economies will soon return to a more normal footing, they are seeking out those stocks that will gain we revert to a ‘pre-corona’ market situation. There is also inflation to take into account. Oil prices are up this year, and that’s one commodity whose price fluctuations are certain to trickle down the supply chain. Along with rising consumer demand, there’s an expectation that prices are going to increase, at least in the near term. All in all, this is the moment to take the old market advice: buy low and sell high. With stock prices falling for now, and volatility up, the low is covered. The key is finding the stocks that are primed to gain when the bulls start running again. Wall Street’s analyst corps know this, and they are not shying away from recommending stocks that may have hit bottom. Using TipRanks database, we pinpointed two such stocks. Each is down significantly, but each also has enough upside potential to warrant a Buy rating. TechnipFMC Plc (FTI) We’ll start in the hydrocarbon sector, where TechnipFMC operates two divisions in the oil and gas business: subsea, and surface. The company’s projects, until recently, included oil and gas exploration and extraction, rig and platform operations, crude oil refining, petrochemical (ethylene, benzene, naphtha, hydrogen) production, and both on- and offshore liquified natural gas (LNG) plants. Earlier this month, the petrochemical and LNG operations were spun off as Technip Energy, a separate independently traded company. TechnipFMC retains the subsea and surface hydrocarbon activities, allowing the company to better focus its efforts. TechnipFMC may need that focus, as the company has had a difficult time gaining traction in the stock markets. Like most of its peers, TechnipFMC saw share value fall steeply last winter at the height of the coronavirus crisis, but since then the stock has only regained about half of the losses. Over the past 12 months, shares of FTI are down 53%. Q4 results are due out today, after market close, and should shed more light on the company’s full-year performance. The company has reported quarterly earnings in 2020 that are in-line with the previous year’s results. The second quarter showed a year-over-year loss; Q1 and Q3 both showed yoy gains. Covering FTI for JPMorgan, analyst Sean Meakim writes, “Since the spin-off of Technip Energies was placed back in motion on 1/7, after outperforming considerably in the first days, FTI shares are now down… With newfound visibility to an exit from “spin purgatory”, investors are giving FTI another look with some still taking a “wait and see” approach until post-spin... We view the completion of the spin as a re-rating opportunity… allowing for broader investor participation. Monetization of TechnipFMC’s stake in Technip Energies helps the balance sheet and provides optionality on capital allocation.” To this end, Meakim rates FTI an Overweight (i.e. Buy) and his $20 price target suggests the stock has room to more than double in the year ahead, with a 172% upside potential. (To watch Meakim’s track record, click here) Overall, there are 13 recent reviews on FTI, breaking down 8 to 5 in favor of Buy versus Hold. This makes the analyst consensus rating a Moderate Buy, and suggests that Wall Street generally sees opportunity here. Shares are priced at $7.35, and the $12.18 average price target implies a bullish upside of ~65% over the next 12 months. (See FTI stock analysis on TipRanks) CoreCivic, Inc. (CXW) Next up, CoreCivic, is a for-profit provider of detention facilities for law enforcement agencies, primarily the US government. The company owns and operates 65 prisons and detention centers with a total capacity of 90,000 inmates, located in 19 states plus DC. Effective on January 1 of this year, the company completed its switch from an REIT to a taxable C-corporation. The move was made without fanfare, and the company reported its Q4 and full-year 2020 results – which covers the preparation period for the switch – earlier this month. CXW showed a top line of $1.91 billion for the ‘corona year’ of 2020, a small drop (3%) from the $1.98 billion reported in 2019. Full-year earnings came in at 45 cents per share. During the fourth quarter, the company reported paying off some $125 million of its long-term debt; CoreCivic’s current long-term liabilities are listed as $2.3 billion. The company showed liquid assets on hand at the end of 2020 as $113 million in cash, plus $566 million in available credit. The heavy debt load may help explain the company’s share performance, even as revenues and earnings remain positive. The stock is down 50% in the past 12 months, having never really recovered from share price losses incurred in the corona panic last winter. 5-star analyst Joe Gomes, of Noble Capital, covers CoreCivic, and remains sanguine on the stock despite its apparent weaknesses. “We view the fourth quarter as continuation a trend, one across the last three quarters of 2020. In spite of COVID, the large reduction in detainees, the reduction in normal operations of the court system, and other impacts, CoreCivic posted relatively flat revenue and sequential adjusted EPS growth. We believe this illustrates the strength of the Company's operating model,” Gomes noted. In line with his optimistic approach, Gomes keeps his Outperform (i.e. Buy) rating and $15 price target as is. This target puts the upside potential at 97%. (To watch Gomes’ track record, click here) Some stocks fly under the radar, and CXW is one of those. Gomes' is the only recent analyst review of this company, and it is decidedly positive. (See CXW stock analysis on TipRanks) To find good ideas for beaten-down 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.
(Bloomberg) -- Cathie Wood’s main exchange-traded funds whipsawed on Wednesday as bond yields surged anew and data showed investors pulled a record amount of cash from the firm during this week’s tech selloff.In a very volatile session, the flagship ARK Innovation ETF (ticker ARKK) fluctuated after its worst two-day rout since September. The fund was recently battered by the rapid increase in Treasury yields, which have caused investors to think twice about the priciest corners of the stock market.Both the ARK Genomic Revolution ETF (ARKG) and the ARK Next Generation Internet ETF (ARKW) rebounded from earlier losses. Tesla Inc., Wood’s biggest bet at her firm Ark Investment Management, climbed after a four-day selloff. Bitcoin, another favorite, also gained while still trading below $50,000.The moves follow data this morning showing investors withdrew an unprecedented $465 million from ARKK on Monday, as well as $202 million from ARKG and $119 million from ARKW -- each a record amount.Worryingly for Wood, there could be worse to come given the one-day delay in reporting flow data. On Tuesday, ARKK more than doubled its trading volume record set just a day earlier.For now, the outflows are a fraction of Ark’s ETF assets under management, which as of last week amounted to more than $60 billion. Wood told Bloomberg Radio on Tuesday she welcomed the correction, and that she was using it to buy more shares of Tesla.Read more: Cathie Wood Buys the 13% Dip in Tesla as ARKK Slips Again “Assets in ARKK have ballooned in size in 2021 as some momentum investors chased the ETF higher,” said Todd Rosenbluth, CFRA Research’s director of ETF research. “Such demand can and often shrinks when losses are incurred. However, even with the outflows the fund remains far larger than it was at year-end, let alone a year ago.”ARKK’s assets dropped by about $3 billion from the end of last week to $25.2 billion, the data show.After its stellar run of inflows and triple-digit returns in 2020, bearish bets have been mounting in the ETF. Short interest has risen to the highest on record, at more than 3% of the available shares in the fund, according to data from IHS Markit Ltd.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
(Bloomberg) -- AT&T Inc. is nearing a deal to sell a significant stake in DirecTV to private equity firm TPG, marking a long-sought exit from the struggles of managing a declining satellite TV business.A deal would value DirecTV at about $15 billion, according to people with knowledge of the matter. That’s a fraction of the $48.5 billion AT&T agreed to pay for the business in 2014.If AT&T and TPG are able to reach a deal, an announcement could come as soon as this week or next, the people said, asking not to be identified because the information is private.The talks could still fall apart and end without a deal, the people said.Representatives for TPG and AT&T declined to comment. The news was reported earlier by CNBC.AT&T Chief Executive Officer John Stankey has been trying to clean house at the company, selling underperforming assets and using the proceeds to pay down debt. If AT&T can unload a major stake in the satellite business, it could let the telecom giant remove DirecTV from its books while maintaining access to some of its cash flow. In 2019, activist investor Elliott Investment Management urged AT&T to explore a divestiture of DirecTV.DirecTV had been open to a merger with rival Dish Network Corp., people familiar with the matter said in 2019. But such a deal would have raised antitrust questions. A proposed combination of the two satellite services was shot down by the Federal Communications Commission and the U.S. Justice Department in 2002.A blank-check company backed by former Citigroup Inc. rainmaker Michael Klein previously expressed interest in a deal, Bloomberg reported last year, but those talks stalled. Apollo Global Management Inc. also has held discussions about a transaction.Klein’s vehicle announced a deal this week with electric carmaker Lucid Motors Inc.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
Square is more than doubling down on its crypto holdings.
(Bloomberg) -- After losing a deal for the New York Mets baseball team to billionaire Steve Cohen, Alex Rodriguez has another game he wants to win.The former all-star for the cross-town Yankees has joined the lengthening roster of financiers, executives, politicians, celebrities and athletes who have signed onto special purpose acquisition companies, or SPACs. Rodriguez, whose Slam Corp. began trading Tuesday, will now start scouting for a merger deal to enrich him and his investors.“I have said to myself many, many times, ‘Boy, if I had the capital I would love to buy this company,’” Rodriguez, perhaps better known simply as A-Rod, said in an interview. “Now with the SPAC, the game is our game to win.”A-Rod’s move comes as the surge in blank-check deals has spurred some investors to point to the asset class as the latest example of market froth, amid concern that too many SPACs will be hunting for too few quality companies to take public.Two months into the year, 164 blank-check companies have raised more than $50 billion in initial public offerings on U.S. exchanges, according to data compiled by Bloomberg. That’s already more than half of last year’s all-time record SPAC volume.SPAC SlumpMeanwhile, the IPOX SPAC Index on Tuesday suffered its worst intraday drop since its July 31 launch, while one of the most prominent blank-check companies, Churchill Capital Corp IV, tumbled 40% a day after announcing a deal with Lucid Motors Inc. Still, the Churchill SPAC’s units closed at $38.31 in New York, well above their $10 trust price.Rodriguez and his partners expect Slam to stand out from the accelerating cascade of SPACs partly through his celebrity status combined with his long and tested business record.“George Steinbrenner would have said there’s only one Yankees and I feel like we have an opportunity to build the Yankees of SPACs,” Rodriguez said, referring to the Major League Baseball club’s longtime owner who died in 2010.Slam, a partnership between Rodriguez’s investment firm A-Rod Corp. and hedge fund Antara Capital LP, will focus on acquisition targets in the sports, media, entertainment, health and wellness and consumer technology sectors, according to its listing documents.Marc Lore, a former Walmart Inc. executive and founder of Jet.com, is a special adviser to Slam.Rodriguez is Slam’s chief executive officer while Antara Chief Investment Officer and Managing Partner Himanshu Gulati is chairman. They stressed that they don’t intend to take a professional sports franchise public.“We have gotten multiple emails about sports teams and it’s just not something we’re focused on,” Gulati said. Rather, Slam is looking for a high-growth technology business with a big addressable market.Red Sox MissRedBall Acquisition Corp., a blank-check firm that counts Oakland Athletics executive Billy Beane of “Moneyball” fame as co-president, had held merger talks with the company that owns the Boston Red Sox. Those talks collapsed, though, Bloomberg News reported.Rodriguez, as part of an investment team that included entertainer Jennifer Lopez, similarly took a swing at the New York Mets but missed. Hedge fund manager Cohen won that deal with a bid of more than $2.4 billion that beat his group by $50 million, Rodriguez said.“We took an incredible run at the Mets, we learned a great deal,” Rodriguez said. “I can only do so many things and that’s why Slam is right at the forefront of my time, my energy and my focus. I’m not saying that 10 years from now we wouldn’t revisit sports.”Slam is trading on the Nasdaq under the symbol SLAM. The units, comprised of one share and one-fourth of a warrant, closed their first day of trading at $10.51 after being offered at $10 apiece.Kaepernick, ShaqAt least two other SPACs are linked to well-known athletes. Colin Kaepernick, the former National Football League quarterback turned activist, is co-chairman of one, while former National Basketball Association star Shaquille “Shaq” O’Neal was a strategic adviser to another.Rodriguez has already seen one of his investments, Hims & Hers Health Inc., go public through a SPAC deal last year. He said his A-Rod Corp. has 30 to 35 venture investments and at least six of them are going public this year.“We didn’t partner with Alex because he is an athlete,” said Antara’s Gulati. “I think it’s great because he has great social media, but I partnered with him because he’s a phenomenal businessman.”Rodriguez said he was watching the market closely including Tuesday’s SPAC slump. “One of my mentors, Mr. Warren Buffett, always told me don’t confuse wisdom with a bull market.”For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
A gauge of global equity markets rebounded in a late-session rally on Tuesday after U.S. Federal Reserve Chair Jerome Powell calmed fears of rising interest rates that have roiled bonds and helped spur assets linked to expectations of a strong recovery. Yields had jumped to 1.394% on Monday, up from less than 1% at the start of the year, on fears the Fed would crack down on inflationary pressures by boosting borrowing costs.
MicroStrategy turned a veritable mountain of zero-interest debt into its single-largest bitcoin allocation yet.
(Bloomberg) -- Kweichow Moutai Co. investors are selling their shares at the fastest pace in more than two years, a warning for a market that owes much of its rally to a handful of large caps.The biggest stock listed in mainland China has lost $80 billion since onshore markets reopened after the Lunar New Year holiday. Wednesday’s 5.1% drop put Moutai’s five-day decline at 16%, the biggest for such a period since October 2018. The company had rallied 30% this year through its Feb. 10 record close.Momentum trades are cracking after the CSI 300 Index briefly surpassed its 2007 closing peak. Chinese traders were griping about a lack of market breadth before the holiday and extreme valuations for some of the most-loved stocks. Less than 10 companies accounted for half of the returns on the benchmark -- including Moutai -- with foreign investors and domestic mutual funds compounding the problem by buying the most liquid megacaps.“This is the beginning of the end for baijiu’s outrageous valuations and the mark of a massive shift to value stocks,” said Dong Baozhen, fund manager at Beijing Lingtongshengtai Asset Management. The big baijiu gains of the past year “have become a prisoner’s dilemma - whoever sells first wins.”Triggers for the reversal include signals on tighter monetary policy from the central bank. The People’s Bank of China is withdrawing liquidity from the financial system, while local media ran a front-page editorial this week saying China’s economic recovery is creating the conditions for the central bank to “normalize” monetary policy.The CSI 300 ended 2.6% lower, with the consumer staples sector that includes baijiu down 4.5%. Health care, which had also been among the market’s best performers until the holiday, dropped 4.4% Wednesday to cap its biggest three-day drop since December 2018.Other makers of baijiu -- a popular liquor in China -- are among the worst performers on the CSI 300 in the past five days, with Shanxi Xinghuacun Fen Wine Factory Co. down 22% and Luzhou Laojiao Co. losing 21%. The Securities Times newspaper on Tuesday listed three major concerns around the baijiu trade, including record-high valuations, overly heavy positioning by institutional investors and the demise in popularity of the spirit among the younger generation.A high-profile fund managed by a star manager Zhang Kun, known for his outperformance in recent months and heavy allocation in the baijiu sector, suspended new orders starting Wednesday. The industry accounted for about 40% of the fund’s holdings, according to a fourth-quarter filing, with top positions including Moutai.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
The crypto mining company said the news marks an upgrade from its previous presence on the middle-tier OTCQB Venture Market.
Experts say borrowers should still move quickly, in case rates go even higher.
The company's shareholders also approved compensation for Apple executives for fiscal 2020, the report said. Shareholders will not vote until next year's annual meeting on Cook's September grant of 333,987 restricted stock units, his first major stock package since 2011, which took effect at the start of Apple's fiscal 2021. It grants him stock units with a possibility to earn as many as 667,974 more if he hits performance targets.
Soaring commodity prices, additional federal stimulus, and government bond yields on the rise are all raising the specter of inflation. Furthermore, there is growing concern that stocks - and tech ones in particular - are now at valuations disconnected from reality. Is the changing macro climate about to send the bull market into retreat? Too early to tell, but it does signal that a more prudent approach to investing might be a good move right now. And that will bring us to dividend stocks. Investors want a pad, something to protect their portfolio in case of a market drop, and dividends offer just that. These profit-sharing payments to stockholders provide a steady income stream, that typically stays reliable even in a downturn. RBC Capital analysts have been doing some of the footwork for us, pinpointing dividend-paying stocks that have kept up high yields, just above 10%. Opening up the TipRanks database, we examine the details behind those payments to find out what else makes these stocks compelling buys. Annaly Capital Management (NLY) First up, Annaly Capital Management, is a real estate investment trust (REIT). Annaly holds a portfolio of commercial real estate with a heavy focus on retail (31%) and office (29%) spaces. Other large investments include multifamily dwellings, hotels, and healthcare properties. The company has over $100 billion total assets. In the company’s 4Q20 results, Annaly showed a 5.1% economic return for Q4, far stronger than the 1.8% reported for 2020 as a whole. EPS came in at 60 cents per common share, and more than covered the regular quarterly dividend of 22 cents. This is the third quarter in a row with the dividend at that level; at the annualized rate of 88 cents per common share, the dividend is yielding 10.7%. This is head and shoulder above the ~2% yield found among peer companies in the financial sector. Annaly has a long history of adjusting its dividend payment to fit with earnings, making it a reliable payer. Also of interest to investors, Annaly finished Q4 with $8.7 billion in unencumbered assets, including cash on hand. The company used this deep pocket to authorize a $1.5 billion common stock repurchase program, in a move to return capital to shareholders and bolster share prices. RBC’s 5-star analyst Kenneth Lee likes what he sees in Annaly’s performance, writing, “We continue to favor Annaly's diversified operating model, strong liquidity and portfolio skew towards agency MBS amid current macro backdrop... Annaly has exposure to growth-oriented, credit assets, including residential and commercial mortgage credit and middle markets lending. We believe diversification should allow NLY to pivot between attractive investment opportunities.” In line with these comments, Lee rates NLY an Outperform (i.e. Buy), along with a $9.50 price target. This figure implies a 14% upside for the year ahead. (To watch Lee’s track record, click here) Overall, there is broad agreement on Wall Street about NLY’s quality, as shown by the 7 to 1 split among the analyst reviews, favoring Buy over Hold and giving the stock a Strong Buy analyst consensus rating. The shares are currently trading for $8.22 and their $9 average price target suggests an upside potential of 9.5% from that level. (See NLY stock analysis on TipRanks) Sunoco LP (SUN) From REITs we move over to the energy industry. Sunoco LP is the largest wholesale distributor of motor fuels in the US, and supplies more than 7,300 Sunoco gas stations in 33 states. Among the company’s products are gasoline, diesel fuel, heating oil, jet fuel, lubricating oils, and kerosene – a full range of petroleum products, sold as both branded and unbranded products. Sunoco also controls 13 storage terminals that maintain a secure supply for delivery to retailers. At the retail end, Sunoco provides equipment to gas stations – from pumps to payment services. This company’s diversified business has allowed Sunoco to remain profitable during the corona pandemic crisis. EPS did come in negative in Q1, when demand fell at the height of the crisis, but quickly rebounded in Q2 and has shown year-over-year gains in each quarter since. Q4 EPS was 77 cents, up from 75 cents in the year-ago quarter. Distributable cash flow in the quarter was down year-over-year, from $120 million to $97 million, and the company announced a quarterly dividend of 82.5 cents per common share. This was held steady from the prior quarter – and in fact, has been held steady at this level since November 2016. Sunoco has been paying out a reliable dividend for the past 8 years. The current payment annualizes to $3.30 per share, and gives a yield of 10.6%. Covering SUN for RBC, analyst Elvira Scotto notes that the recent Arctic storm patterns in the continental US have negatively impacted sales volumes but remains buoyed by other aspects. “SUN maintained its 2021 guidance and noted improvement in volumes in January. We do not expect the recent weather conditions to have a meaningful impact to SUN's 2021 volumes,” said the 5-star analyst. “We believe SUN shows investors sizable current income with an improved balance sheet. We expect SUN to maintain its distribution and expect distribution coverage to improve over time.” Scotto rates SUN shares an Outperform (i.e. Buy) and increased the price target from $36 to $38. The figure implies a 23% upside for the next 12 months. (To watch Scotto’s track record, click here) Overall, SUN shares have a Moderate Buy rating from the analyst consensus, based on a range of reviews including 5 Buys, 2 Holds, and 1 Sell. The shares have an average price target of $33.50, which gives an 8% upside potential from the current trading price of $31. (See SUN 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.