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2 Stocks “Buy Strong” with High Profits

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For the retail investor, the only certainty of our current market environment is uncertainty. Volatility is on the rise, the major indicators are showing deep losses. As if that wasn’t enough, at least one bull in the market became even more pessimistic.

Marko Kolanovic, a strategist at JPMorgan, has been one of the most bullish voices on Wall Street in recent months, but current circumstances have prompted him to push back the schedule. While he still thinks the S&P 500 could hit 4800, or a 32% gain from current levels, he’s setting that target in 2023 rather than the end of this year.

Kolanovich sees two major dangers in the future, both of which are policy making; The policy of the Central Bank, which could further damage the currency and stock market, and the policy of the Russian war in Ukraine, which threatens to destabilize peace in Europe in general. Kolanovic describes the set of policy errors as “throwing stones into glass houses.”

This kind of warning signals it’s time for some defensive plays, and that will naturally lead us to dividends. These are stocks that will guarantee a stable income regardless of the daily market fluctuations and protect the portfolio from any incoming fluctuations.

With this in mind, we used a file TipRanks . database to zero in two stocks that show high dividend yields – at least 5%. Each stock also carries a strong consensus rating of buy; Let’s see what makes it so attractive to Wall Street analysts.

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WP Carey & Company (WPC)

We’ll start with WP Carey, a real estate investment trust (REIT). The company operates on a net lease model, under which tenants pay all expenses related to property management, including property taxes, insurance and maintenance, but also frequent upgrades and new construction. The landlord leases the land to the tenant who has more than usual freedom to make improvements.

Operating in the United States and Europe, WP Carey has a total of 1,390 net rental properties, in more than 25 countries, totaling 170 million rentable square feet. These properties have an occupancy rate of 99.1%, and 99.3% of leases have rent escalation. Overall, out of 386 rental clients, WP Carey realizes annual base rents in the $1.34 billion range.

In its most recent reported quarter, the second quarter of ’22, WPC showed a 7.7% annual gain in total revenue, from $319.7 million in the prior quarter to $344.4 million in the current report.

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In a gauge of dividend investor interest, WP Carey’s AFFO, or adjusted funds from operations, rose a modest 3.1% year over year to $1.31 per diluted share. This increase is significant — money from operations is used to fund the company’s earnings, which were increased in the September announcement to $1.06 per common share. This gives an annual rate of $4.24, for a 6% return. This return is about three times the average found among S&P 500 companies.

All this caught the attention of a JMP Securities analyst Mitch Germanwho set a bullish stance for the stock: “We continue to believe that the stock will outperform given positive growth from CPI-related leases, rise from storage holdings, and a well-diversified deployment strategy, particularly in the face of higher cap rates. Leveraged balance sheet Low finances have sufficient liquidity to fund a massive deployment target ($1.75 – $2.25 billion), while the story remains less complex. These factors continue to positively position the company to outperform, in our view.”

This reinforces the analyst’s view that WPC is a stock to “buy”, with a target price of $93 worth. At current levels, that target suggests a 30% rise for the next year. (To watch Germaine’s record, click here)

Germain is optimistic, but it is far from the only upside for this stock. WPC has 5 recent analyst ratings, including 4 buy ratings to just 1 comment, for a strong buy consensus rating. The shares are priced at $71.32 and their average target of $89 suggests a 25% rise for the next year. (See WPC stock forecast on TipRanks)

HealthPeak Features (summit)

We will now turn to HealthPeak Properties, another REIT but that focuses on developing and leasing properties in the life sciences, medical office, and CCRC (Continuing Care Retirement Community) sectors. HealthPeak has been in business since 1985 and currently has $20 billion in real estate in its paid-for private healthcare portfolio. The company has structured its portfolio to provide earnings stability and earnings growth regardless of how the industry or markets perform.

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HealthPeak will release its Q2 numbers for Q2 early next month, but we can get a sense of the company’s performance by looking at its Q2 numbers, the latest reports. The company’s total rental income was $387 million, and resident fee and services revenue was $125.3 million. Add to that the interest income of $5.5 million, and the company showed a total top line of about $517.9 million.

This revenue supported an adjusted FFO of $238 million, or 44 cents per common share. With that money available, the company paid its last dividend, in August, at 30 cents per share. At an annual rate of $1.20, this yields a dividend of 5.3%.

This stock caught the attention of a Wolfe Research analyst Andrew Rusivac, who is optimistic about HealthPeak’s ability to weather an economic storm or market downturn. Rosivach writes of the company, “We believe the stock is the ant in the ‘Ant and the Grasshopper’ story with growth isolated from pre-hire life science developments, a consistent MOB track record, and a healthy budget…our comment on PEAK Being ‘boring’ is a huge compliment – we think that The company – by design – has prepared itself for the downturn. We believe that the “ant and grasshopper” stockpile prepared for the economic downturn will increase the attractiveness of the market…”

Measured by his forecast, Rosivach gives PEAK shares a target price of $27, indicating a 23% rise for the stock in the coming months. This is accompanied by an Outperform rating (i.e. buy). (To watch Rosivach’s record, click here)

In general, the street clearly agrees with the bullish view in this direction. Although there are 3 ratings (i.e. “Neutral”) among the recent analyst ratings, these buy ratings are outweighed by 9 buy ratings, which gives the strong buy consensus for PEAK. The stock is selling for $21.90, with its average target of $31.67 implying a gain of nearly 45% in the next 12 months. (See peak stock forecast on TipRanks)

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To find good dividend stock trading ideas with attractive ratings visit TipRanks’ Best stocks to buya newly launched tool that unifies all of TipRanks’ stock insights.

disclaimer: The opinions expressed in this article are only those of our featured analysts. The content is intended for informational use only. It is very important to do your own analysis before making any investment.


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Your wallet is drained by subscriptions. Wall Street thank you.

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Try to calculate the number of subscriptions you have. We’ll wait.

There’s your Amazon Prime and your Spotify — the ones you married. How about that Apple TV+ subscription you’ve been meaning to cancel since you watched Ted Lasso… last summer? Scroll through your cellphone (it’s the same as another subscription) and you might find a Calm app your doctor recommended that you haven’t actually used, or a dating app you’ve used and hated, but will likely use again. There is a Chewy subscription to feed your dog DoorDash Subscribe to Feed Yourself and sign up for Peloton to work on the food you just ate. And of course, there’s also a Wall Street Journal subscription necessary to read this article.

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Norway’s $1.3 trillion wealth fund encourages traders to bet against the market

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(Bloomberg) — Nikolai Tangen, head of Norway’s $1.3 trillion sovereign wealth fund, wants traders to bet against the market.

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The world’s largest single owner of publicly traded companies, with nearly 1.3% of all listed shares, on Thursday outlined a three-year plan to limit losses that have accumulated in turbulent markets for 2022, exacerbated by soaring inflation and rising interest rates. and war in Europe. For the first time in its history, the wealth fund is looking forward to a future in which investments are a fraction of what they used to see.

This means that “excessive returns are more important than ever,” said Tangen, who has repeatedly told his countrymen to prepare for “extremely low returns.”

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Speaking in an interview Thursday, Tangen said the key to beating the benchmark would be to “push the fund to become more long-term, more ambivalent, and more active in terms of passive selection.” That is, “there are a lot of things we don’t want to own,” he said, without elaborating.

Built from the wealth of the North Sea in oil and gas, the Oslo-based fund has warned of a prolonged downturn in the markets after posting an average return of 6% over a quarter century of its existence. It lost 4.4% in the third quarter, which is equivalent to about $43 billion.

The fund has only one owner, unlike other large asset managers, is largely affiliated with the index, and invests according to a strict mandate from the Ministry of Finance. She strives to make the most of her limited field to try and beat the standard against which she is measured, something she has been able to achieve in eight of the past ten years.

“In a volatile world, you need to be more long-term and more ambivalent,” Tangen said. This is “because there will be more opportunities when you can do the opposite with everyone else.”

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He said the strategy was “playing into heightened geopolitical uncertainty” and a partial reversal of globalization, while the wealth fund released its three-year strategy. The plan sets goals such as investing in companies before they go public, voting more actively at shareholder meetings, improving cooperation between traders and portfolio managers, and exploiting periods of turmoil in real estate markets.

The fund also needs to be “more robust operationally,” Tangen said, including being prepared to counter cyberattacks. He has already said that openness and transparency are priorities to ensure that Norwegians understand why their rain fund is not growing as quickly as before.

The fund scaled back its participation in initial public offerings last year. In hindsight, he dodged a bullet, Tangen said, having bought fewer IPOs in “really frothy” markets and seeing those IPOs perform “really badly.” But that is likely to change as conditions improve.

“Selectively exploring this opportunity in the next strategy period is something we will look at,” said Equity CEO Pedro Furtado Reis. “Doing this allows us to get into the life cycle of the company earlier and hopefully as the company grows it will have a greater share of that value.”

The fund said it would consider investments in renewable energy storage and transmission in the future, which would expand the range of renewable infrastructure it would like to keep. It spent about 1.4 billion euros ($1.5 billion) on a 50% stake in a Dutch offshore wind farm in 2021, but has not added anything else to its renewable energy infrastructure portfolio.

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“It’s competitive,” Tangen said of the wind and solar projects market. “There aren’t a lot of projects out there, they’re very competitive and the returns are very low. So we just want to increase the space. Generally in the investment world, the more options you have, the better.”

The broader scope in renewables also reflects an internal effort within the fund to improve collaboration between teams and identify new investment opportunities, said Daniel Baltazar, chief equity officer.

“We may have built a few more silos than we should have,” Balthazar said. “With the advent of Nikolai, there is a much greater effort to collaborate between teams. With this collaboration between teams, we can also search in a better way across value chains.”

(Updates in detail in sixth paragraph, comments with CEO in twelfth)

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Saudi Arabia signs Huawei agreement, deepening ties with China on Xi’s visit by Reuters

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© Reuters. Chinese President Xi Jinping arrives in Riyadh, Saudi Arabia, December 7, 2022. Saudi Press Agency/Handout via Reuters

By Aziz El Yacoubi and Eduardo Baptista

RIYADH (Reuters) – Saudi Arabia and China offered deep ties with a series of strategic deals on Thursday during a visit by President Xi Jinping, including one with tech giant Huawei, whose growing incursion into the Gulf region has raised US security concerns.

King Salman signed a “comprehensive strategic partnership agreement” with Xi, which has received a warm welcome in a country that has forged new global partnerships outside the West.

Xi’s car was escorted to the king’s palace by members of the Saudi Royal Guard riding Arabian horses and carrying the Chinese and Saudi flags, and he later attended a welcome banquet.

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The Chinese leader held talks with Crown Prince Mohammed bin Salman, the de facto ruler of the oil giant, who greeted him with a warm smile. Xi ushered in a “new era” in Arab relations.

The offer stood in stark contrast to the quiet welcome given in July to US President Joe Biden, with whom relations have been strained by Saudi energy policy and the 2018 killing of Jamal Khashoggi that overshadowed the embarrassing visit.

The United States, which has warily watched China’s growing influence and its relations with Riyadh at rock bottom, said Xi’s trip is an example of Chinese attempts to exert influence around the world and will not change US policy toward the Middle East.

A memorandum was agreed with the Chinese company, Huawei Technologies, regarding cloud computing and building high-tech complexes in Saudi cities, despite the US discomfort with Gulf allies over potential security risks in using the Chinese company’s technology. Huawei has participated in building 5G networks in most of the Gulf countries despite the concerns of the United States.

Prince Mohammed, who fists instead of shaking hands with Biden in July, returned to the world stage after Khashoggi’s killing and has been defiant in the face of American anger over oil supplies and pressure from Washington to help isolate Russia.

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In a further polishing of his international credentials, Saudi Arabia and the United Arab Emirates said on Thursday that the emir and the Emirati president had led a joint mediation effort to secure the release of American basketball star Brittney Griner in a prisoner exchange deal with Russia.

In an opinion piece published in Saudi media, Xi said he was on a “pioneering journey” to “open a new era of China’s relations with the Arab world, the Arab Gulf states and Saudi Arabia.”

Xi added that China and Arab countries “will continue to raise the banner of non-interference in internal affairs.”

China’s state broadcaster CCTV said that sentiment was echoed by the crown prince, who said his country opposed any “interference in China’s internal affairs in the name of human rights”.

Xi, who is set to meet other Gulf oil producers and attend a broader meeting of Arab leaders on Friday, said China will work to make those summits “landmark events in the history of China-Arab relations,” and that Beijing regards Riyadh as “an important force in the multipolar world.” .

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Saudi Arabia and other Gulf states such as the United Arab Emirates have said that they will not pick sides among the world powers and that they are diversifying partners to serve national economic and security interests.

“reliable partner”

China, the world’s largest energy consumer, is a major trading partner of the Gulf states, and bilateral ties have expanded as the region pushes for economic diversification, raising US concerns about China’s participation in sensitive Gulf infrastructure.

The Saudi energy minister said on Wednesday that Riyadh will remain a “reliable and reliable” energy partner of Beijing and that the two countries will enhance cooperation in energy supply chains by setting up a regional hub in the kingdom for Chinese factories.

The Saudi Press Agency reported that Chinese and Saudi companies also signed 34 deals to invest in green energy, information technology, cloud services, transportation, construction and other sectors. It did not give figures, but said earlier that the two countries would conclude initial deals worth $30 billion.

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Tang Tianbo, a specialist on Middle East affairs at the China Institute of Contemporary International Relations — a think tank affiliated with the Chinese government — said the visit will lead to further expansion of energy cooperation.

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