The right stock will always bring a benefit to your portfolio – and high-yield dividend stocks, when carefully chosen, will do just that.
And the results are interesting – the analysts have tagged two stocks under $10 with strong dividends, at least 9% to be exact.
The company offers short-term mortgage loans to real estate investors – rather than owner-occupants – for the purpose of funding acquisition, renovation, development, and improvement of properties.
At the end of the first quarter, Sachem’s portfolio had assets totaling $228.4 million, up a modest $1.7 million from the previous quarter.
This annualizes to 48 cents per common share – and gives the stock a dividend yield of 9.4%.
Lument carries a portfolio of commercial real estate debt investments, mainly transitional floating rate commercial mortgage loans.
For the first quarter, ending March 31, Lument reported 11 cents per share income, based on a total net income of $2.8 million.
With the Fed holding rates at historic lows, dividends in the broader stock markets yielding an average of just about 2%, and the 10-year Treasury bond yielding even below that, the attraction of Lument’s yield is clear.
Based on the current dividend yield and the expected price appreciation, the stock has ~22% potential total return profile.
Second, the CRE CLO market is having a banner 2020 and financing spreads are compressing which will allow LFT to re-lever the overall equity base,” Stewart noted.
The shares are selling for $4.00, and the average price target of $4.38 indicates a 9.5% upside from that level.