Seven Dividend-Paying Financial Stocks Analysts Are Bullish On
Markets have been hitting new highs and the unemployment rate has ticked down.
Despite the uncertainty about when the Fed's quantitative easing will end, the slowdown of the Chinese economy and the ongoing economic troubles in Europe, analysts are still optimistic about certain stocks.
Here is a quick look some dividend payers in the financial sector that have a consensus recommendation of analysts of Strong Buy. Furthermore, based on their mean price targets, analysts see more than 10 percent potential upside in these stocks, relative to their current share prices.
Shares of American Realty Capital Properties (NYSE: ARCP) are trading about 31 percent higher than a year ago, though the share price is more than 20 percent lower than the 52-week high set back in May. The company is expected to report a big jump in second-quarter revenues this week.
This New York City-based real estate investment trust (REIT) has a dividend yield near 6.5 percent and a market capitalization of around $2 billion. Note that its return on equity is in negative territory. Over the past six months, the stock has underperformed W.P. Carey and the broader markets.
British multinational banking and financial services company Barclays (NYSE: BCS) saw its shares retreat almost 12 percent in the past two weeks. The $53 plus billion market cap company fell short on the top and bottom lines when it reported second-quarter results at the end of July.
The London-based bank has a dividend yield of about 1.4 percent and a long-term earnings per share (EPS) growth forecast of almost 10 percent. Over the past six months, the stock has outperformed HSBC (NYSE: HBC) but underperformed Deutsche Bank (NYSE: DB).
Gazit-Globe (NYSE: GZT) has traded mostly between $13 and $14 a share since the beginning of the year. But the share price is more than 40 percent higher than a year ago. The shopping center developer reported solid first-quarter results back in May.
This Israeli company has a market cap of more than $2 billion. The dividend yield is about 2.6 percent, and the price-to-earnings (P/E) ratio is less than that of Kimco Realty (NYSE: KIM) and Regency Centers (NYSE: REG). Over the past six months, the stock has underperformed the broader markets.
PennyMac Mortgage Investment Trust (NYSE: PMT) shares have decline more than 16 percent in the past six months. The share price is about the same as it was a year ago. Revenue growth at this specialty finance company has exceeded the industry average. It reports second-quarter results this week.
Headquartered near Los Angeles, this REIT has a market cap near $6.6 billion and a dividend yield of about 10.4 percent. The return on equity is more than 15 percent. The stock has outperformed Annaly Capital Management (NYSE: NLY) but underperformed the broader markets over the past six months.
The share price of Starwood Property Trust (NYSE: STWD) pulled back more than nine percent in late June but has since largely recovered. This REIT reports second-quarter results this week, but note that earnings per share (EPS) declined by more than 13 percent in the most recent quarter.
The $3.5 billion market cap company has a dividend yield near 7.2 percent. Its operating margin is more than 75 percent. Over the past six months, it has underperformed competitor Arbor Realty Trust (NYSE: ABR) and the broader markets.
Sumitomo Mitsui Financial Group (NYSE: SMFG) shares are more than 15 percent higher than six months ago. The share price hit a new multiyear high in July. The Japanese banking and financial services company is one of the largest financial institutions in the world.
The Tokyo-based bank has a market cap near $13 billion, a dividend yield of about 2.5 percent and a P/E ratio lower than Mitsubishi UFJ Financial (NYSE: MTU) and Mizuho Financial (NYSE: MFG). Over the past six months, the stock has outperformed those competitors.
W.P. Carey (NYSE: WPC) is up more than 23 percent from six months ago, but down more than 10 percent from the recent 52-week high. This REIT that primarily invests in commercial properties recently announced it would acquire Corporate Property Associates 16 - Global.
The market cap of New York-based W.P. Carey is more than $4 billion, and the dividend yield is about 4.8 percent. The return on equity is less than four percent. The stock has outperformed the likes of American Realty Capital Properties and Lexington Realty Trust (NYSE: LXP) over the past six months.
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