In these uncertain times, with interest rates fluctuating and a presidential election looming, investors are seeking stability and reliability. According to Bank of America’s quant strategist Savita Subramanian, the key to navigating this turbulent landscape lies in embracing the “boring” options – specifically, dividend stocks with high yields.
These stalwart investments offer a steady income stream, impervious to market fluctuations. As Subramanian aptly puts it, “sometimes boring is good.” With this in mind, we’ve delved into the TipRanks database to uncover high-yielding dividend stocks that top analysts are recommending as buys.
Redwood Trust (RWT) is a real estate investment trust (REIT) that has built a reputation for delivering reliable, high-yield dividends. By focusing on mortgage-related assets and providing liquidity to the housing market, Redwood has established a significant business footprint. Its portfolio totals $3.4 billion, with 78% organically created and 22% third-party originated.
Impressive revenue growth of 56% year-over-year in Q2, coupled with a 6% dividend increase, has caught the attention of JMP’s 5-star analyst Steven DeLaney. He expects further dividend hikes in the coming year, citing the company’s strong earnings potential and flexible business structure. With a forward yield of 9% and a one-year upside potential of 19%, Redwood Trust is an attractive option for investors seeking stability and growth.
Another high-yielding dividend stock worth considering is Blackstone Secured Lending Fund (BXSL), a business development company (BDC) that provides capital and credit to private sector companies. Backed by the esteemed Blackstone asset manager, BXSL has built an investment portfolio worth $11.3 billion, with a focus on software, healthcare, and professional services.
The company’s strong credit performance, conservative risk profile, and portfolio growth opportunities have earned it a Strong Buy consensus rating from top analysts. RBC’s Kenneth Lee, a top 1% analyst, expects a total return potential of ~20%, driven mainly by dividends. With a forward yield of 10.3% and a one-year upside potential of 10.5%, Blackstone Secured Lending Fund offers investors a compelling combination of income and growth.
In these uncertain times, dividend stocks like Redwood Trust and Blackstone Secured Lending Fund offer a beacon of stability and reliability. By embracing the “boring” options, investors can navigate the turbulent landscape and reap the rewards of steady income and potential growth.
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