2 Big Dividend Stocks Yielding 7%; Analysts Say ‘Buy’!

Dividend Stocks

Let’s talk about defending your portfolio. It’s a common impulse for most investors, when the economy starts to turn sour. We’re in a growth phase now, with economic activity rebounding strongly from the corona-crisis shutdowns, and with reopening getting into full stride, economists are predicting up to 8% GDP expansion this year.

00:00 Intro
00:43 Black Stone Minerals (BSM)
04:30 Blackstone Mortgage Trust (BXMT)

But there are clouds on the horizon. Inflation is rising, and the April jobs report was, simply put, a disaster. The Biden Administration is pushing multi-trillion dollar spending plans that are likely to boost inflation, while the expanded unemployment benefits are giving the unemployment rate an artificial boost. But with all that, the Federal Reserve has signaled that it does not intend to raise interest rates.

Writing from investment banking firm Canaccord, analyst Tony Dwyer acknowledges the unsettled market conditions.

“Although the major market indices remain near record levels, there has been incredible volatility underneath due to confusion around the path of inflation and the Federal Reserve insistence it is transitory. We fully expect the rotational volatility to continue over the coming weeks, with investors debating the outlook for inflation ahead of the newest economic data in early June as the Fed goes into their quiet period ahead of the June 15-16 FOMC meeting,” Dwyer noted.

All of this adds up to a market environment that lends itself to defensive stock plays, as a hedge against uncertainty. And that, of course, brings us to dividend stocks. These are the classic defensive plays, giving investors a dual path toward returns, from both the share appreciation and the dividend payments.

Wall Street’s analysts have been doing some of the footwork for us, pinpointing dividend-paying stocks that have kept up high yields, at least 7% to be exact. Opening up the TipRanks database, we examine the details behind two such stocks to find out what else makes them compelling buys.

Black Stone Minerals (BSM)
Hydrocarbon exploration and development company, Black Stone Minerals. This company holds rights to more than 20 million acres, spread across 60 productive basins in 40 states. The lion’s share of the operations are spread from Texas through Alabama, but Black Stone also has rights and hydrocarbon production in Montana and North Dakota, West Virginia and Pennsylvania, and the Rocky Mountain states.
Overall, Black Stone has attracted attention from 5 Wall Street analysts, whose reviews break down 2 to 3 Buys versus Holds, and give the stock a Moderate Buy consensus rating. The shares are selling for $9.90; they have $11.40 average price target, indicating room for 15% upside in the next 12 months.

Blackstone Mortgage Trust (BXMT)
Blackstone Mortgage focuses on collateral-based senior mortgage loans in the North American, European, and Australian markets. The company has a real estate portfolio exceeding $368 billion in global value, and a total of $649 billion in assets under management. The AUM total includes $196 billion in real estate assets.
BXMT has 5 analyst reviews, which include 2 to Buy and 3 to Hold, for a Moderate Buy analyst


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

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