3 best dividend stocks with growth potential; Goldman Sachs ‘buy’
Investing is about finding profits, and investors have long seen two major paths toward that goal. Growth stocks, mainly stocks that provide returns based on stock price valuation, one way. The second path is through dividend shares. These are shares that pay back one percent of the dividends to the shareholders – a dividend, usually sent quarterly. Payments vary from less than 1% to more than 10%, but the average for stocks listed on the S&P 500 is about 2%. Dividends are a good addition to a patient investor because they offer a steady return on income. Goldman Sachs analyst Caitlin Burrows is looking at the real estate division, which is a group of long-known stocks for high-yielding dividends – especially as she sees plenty of reasons to expect strong growth in the three stocks. Running all three through Dibronx’s database, we learned that all three are excited about the rest of the street because they boast the “strong buy” analyst consensus. Bradstone Net Lease (PNL) First, Bradstone Net Lease is an established REIT that raised $ 533 million in an IPO last September. The company held 33.5 million shares in the market, followed by more than 5 million shares held by underwriters. It was considered a successful start, and PNL now has a market cap of over $ 63 2.63 billion. Bradstone’s portfolio includes 628 properties in 41 U.S. states and the Canadian province of British Columbia. These assets are offered to 182 tenants, totaling $ 4 billion. The best feature here is the longevity of the leases – the average remaining lease by weight is 10.8 years. In the third quarter, PNL reported the most recent full funding net income of $ 9.7 million, or 8 cents a share. Revenue came mainly from rents, and the company reported 97.9% rent per quarter. Looking ahead, the company expects $ 100.3 million in property acquisitions during Q4, and the rent collection rate is 98.8%. Bradstone’s earnings and higher rent collections support a common share of 25 cents or $ 1 dividend per year. It offers an affordable fee to the company, and a return of 5.5% to investors. Goldman’s Burroughs sees the acquisition moves as the most important factor here. “Aggressive Acquisitions is Bradstone’s main revenue driver … Following the COVID-induced market uncertainty (PNL did not complete any acquisitions on 1H20) and prior to its IPO, the management stopped acquisitions. We estimate that the NL will achieve a positive investment spread of 1.8%, which will lead to 0.8% revenue growth (in 2021E FFO) for every $ 100 million acquisitions (or 4.2% of our 2021E acquisitions). ”For this purpose, Burrows estimates the acquisition of PNL , And his price target of 23% indicates an upside of 27% for the coming year. (Click here to see Burrow’s track record) Wall Street generally agrees with Burroughs on Bradstone. 3 positive reviews in recent weeks The only reviews that make the analyst’s consensus rating unanimously strong buy. The shares are currently set at .1 18.16, and the average price target. 21.33 recommends a one-year reversal of ~ 17%. (See PNL Stock Analysis in Dip Rankings) Realty Income Corporation (O) Realty income plays an important role in the REIT industry. The company has a portfolio worth over $ 20 billion, with more than 6,500 assets in 49 states, Puerto Rico and the UK. Annual revenue crossed 48 1.48 billion in fiscal year 2019 (last with complete data), and holds monthly dividends for 12 years. Looking at the current data, we see that O 3Q20 has issued 7 cents per share income and $ 403 million in total revenue. The company charged 93.1% of its contract rent in the quarter. While relatively low, a drill for monthly values shows that rent collection rates have been rising since July. As mentioned, O pays monthly dividends and has continued to do so since it was publicly listed in 1994. The company raised its payments in September 2020, marking the 108th increase in that time. The current fee is 23.45 cents per share, which is 81 2.81 cents per year – and yields 4.7%. Based on the above, Burrows placed the stock on its US trust list, with a buy rating and a $ 79 price target for the next 12 months. This target represents 32% reversal from current levels. Supporting his position, Burroughs noted, “We estimate FFO growth of 5.3% per annum over 2020E-2022E, with average REIT coverage ranging from 3.1% on average. We expect major revenue drivers to include continuous recovery in acquisition blocks and a gradual improvement in theater rents (by 2022). $ 2.3 billion. [We] We hope that our acquisition volume assumptions will actually become eight days conservative by 2021, with the company already agreeing to make $ 807.5 million in acquisitions (or 29% of our estimate for 2021). “Overall, Wall Street takes a positive position on realty earnings stocks, making 5 buys and 1 hold holds strong in the previous three months. Meanwhile, the average price of 69.80 indicates that the target is 17% upside from the current stock price (see O stock analysis). ) Essential Properties Realty Trust (EPRD) Finally, Essential Properties owns and manages a portfolio of single-lease commercial properties throughout the United States: car wash, convenience stores, medical services and restaurants. Essential properties has a high aggression rate of 99.4% on its assets, 3. The company reported 18.2% year-on-year revenue growth of $ 42.9 million, including $ 589.4 million in cash, cash, cash equivalents and available credit for the quarter under review. Was optimistic enough to raise dividends on its way to Q4. The new dividend payment is 24 cents per share, up 4.3% from the previous rate. The current rate is 96 cents a year, yielding 4.6%. The company has been steadily raising its dividends for the past two years. In his review for Goldman, Burrows focuses on the recovery made by essential properties from the heights of COVID panic last year. “When the Shelter Orders came into force in early 2020, only 71% of EPRD’s assets were open (in whole or in limited terms). This situation has improved in the intervening months, and now only 1% of EPRD’s portfolio is closed. We also estimate 2.8% potential revenue growth from the $ 100 million acquisition, ”Burroughs wrote. In line with his optimistic approach, Burroughs is offering a buy rating for EPRT shares, with a one-year price target of 27% upside. There are reviews, and 8 buyouts and 1 sell break provides a strong buy consensus estimate for the stock 46 20.46 price and the average price target is 22.89, which is 12% of the potential for reversal from current levels. Giving. (See EPRT Stock Analysis at Dipronx) Dividend Shares The best stocks to buy at Dipronx, the newly launched tool, combines all of Diprank’s stock insights to find good ideas for trading at attractive ratings. Disclaimer: The opinions expressed in this article are those of exclusive analysts. Content should be used for informational purposes only. It is very important to do your own analysis before making any investment.