TipRanks ‘Perfect 10’ List: These two High-Yield Dividend Stocks Tick All the Boxes

In a financial environs riddled with unprecedented levels of uncertainty, investors are at wits’ finish. When it comes to finding an investment strategy that volition yield returns, traditional methods might not be every bit dependable. Then, how should investors get out of the heat?

In times like these, a more comprehensive stock analysis tin can steer investors in the direction of returns. Rather than looking solely at more conventional factors like cardinal or technical analyses, other metrics tin play a fundamental role in determining whether or not a detail stock is on a articulate path forrard.

TipRanks offers a tool that does exactly that. Its Smart Score measures eight key metrics including fundamentals and technicals while likewise taking into account annotator, blogger and news sentiment as well as hedge fund and corporate insider activity. Subsequently analyzing each metric, a unmarried numerical score is generated, with ten beingness the best possible result.

Using the Best Stocks to Buy tool, we were able to pour through TipRanks’ database, filtering the results to prove only the names that take earned a “Perfect 10” Smart Score and offer a loftier-yield dividend payment, of seven% or better. Nosotros found two that managed to tick all of the boxes. Let’s bound correct in.

Enterprise Products Partners (EPD)

We’ll start with Enterprise Products Partners, a midstream company in the energy industry. Midstream refers to the companies that connect well heads, where hydrocarbons are extracted, with the customers further downwardly the distribution line; midstream firms control networks of pipelines, rail and road tankers, barges, refineries, processing plants, concluding points, and storage tank farms. Enterprise makes its business in this expanse, moving rough oil, natural gas, natural gas liquids, and refined products through its network, which is centered on the Gulf Declension in Texas and Louisiana just extends into the Southeast, Appalachia, the Great Lakes, the Mississippi Valley, and the Rocky Mountains.

This adds up to a lucrative business, and in the contempo 3Q22 financial results, Enterprise reported a cyberspace income of $1.39 billion, 17% year-over-year. On a per-share basis, diluted EPS came to 62 cents, 10 cents meliorate than the year-ago result.

Of particular interest to dividend investors, the distributable cash flow rose 16% y/y to reach $i.nine billion. This was more than enough to fully embrace the company’s declared dividend payment of 47.five cents per common share. On an annualizes basis, the dividend comes to $1.90 per share, and offers a solid yield of 7.6%. The visitor has a reliable dividend payment history going back to 1998.

Covering this stock from Raymond James, 5-star analyst Justin Jenkins describes Q3 as ‘another steady quarter,’ and writes, “The unique combination of nugget integration, balance canvass strength, and ROIC track record at Enterprise (EPD) remains best-in-form. Nosotros see EPD as well-positioned in midstream from a volatility vs. recovery perspective, with almost segments performing well… Fiscal momentum only expands the opportunity for capital returns, with distribution growth in progress and buybacks hopefully becoming more material over fourth dimension. Meanwhile, EPD all the same trades at an attractive 7.6% yield…”

To support his bullish thesis, Jenkins rates EPD shares a Stiff Buy, and his price target of $32 implies a gain of 29% on the i-year fourth dimension frame. (To sentry Jenkins’ track record,
click here)

The view from Raymond James is hardly the only bullish take hither; this stock gets a Strong Buy consensus rating based on x recent analyst reviews that include nine to Buy and one to Concur (i.e. Neutral). The shares are selling for $24.75 and their $31.67 average price target suggests an upside of 28% over the next 12 months. See EPD stock assay.

Rithm Capital
(RITM)

The second stock we’ll look at is Rithm Capital letter, a real estate investment trust (REIT). REITs are perennial dividend champs, as tax code regulations require them to return a high share of profits straight to investors – and dividends are a convenient style of compliance. Rithm, which until August of final year operated as New Residential, has its easily in both lending and mortgage servicing to investors and consumers. The firm’south portfolio is made up of a variety of instruments, including loan originations, real estate securities, commercial property and residential mortgage loans, and MSR-related investments. That last, MRSs, makes upwards 26% of the portfolio; mortgage servicing makes up 42% of the total. The visitor boasts over $seven.5 billion in net disinterestedness investments.

In its terminal reported quarter, 3Q22, Rithm showed a total of $153 million in earnings bachelor for distribution. This came out to 32 cents per common share. These figures compare well to the $145.viii 1000000 total and 31-cents per share reported in the year-ago quarter.

More than chiefly, the ‘earnings bachelor for distribution’ hands covered the 25 cent common share dividend declared in September. At the $1 annualized charge per unit, Rithm’south dividend yields an impressive 11%.

Amidst the bulls is BTIG analyst Eric Hagen, who has been roofing Rithm, and he’s impressed with what he sees.

“We similar the stickiness of the greenbacks flows in a seasoned MSR portfolio, which we think supports the financing and liquidity support it carries backside the asset. Over the near term we see less room for dividend growth, which to a degree reinforces the discounted valuation. That said, with a longer-term view, nosotros call up the quality of the render for the level of adventure in the stock is being undervalued… We think scalability is one of the primal partition points we see for valuations beyond the capital structure in our coverage right at present, particularly among about originator/servicers where the leverage leans more toward unsecured debt”, Hagen opined.

Hagen goes on to give RITM shares a Buy rating, and he sets a toll target of $xiii to indicate potential for a robust upside of 44% in the coming months. (To sentry Hagen’s track tape,
click here)

Similar Hagen, other analysts also like what they’re seeing. With 6 Buys and just 1 Concur, the give-and-take on the Street is that the stock is a Strong Buy. In addition, the $11 average cost target implies 22% upside potential. Encounter RITM stock assay.

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Disclaimer
: The opinions expressed in this article are solely those of the featured analysts. The content is intended to exist used for informational purposes only. It is very important to do your ain assay before making whatever investment.