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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.”

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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.

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.

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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.

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)

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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.

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…”

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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)

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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MicroStrategy is at its lowest level since 2020 after the sales were revealed

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(Bloomberg) — Shares of MicroStrategy touched their lowest level since August 2020 after the enterprise software company, which in recent years has been known as the largest buyer of bitcoin, revealed its first sale of the token.

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The stock fell 1.1 percent to $136.63 on Thursday, down 75 percent this year. Bitcoin rose less than 1% to around $16,590 and is believed to have fallen 64% since the start of the year.

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In a filing on Wednesday, MicroStrategy said it acquired approximately 2,395 Bitcoin between the beginning of November and December 21 through its subsidiary MacroStrategy, and paid out approximately $42.8 million in cash. It then sold 704 of the tokens on Dec. 22 for a total of about $11.8 million, citing tax purposes, before buying another 810 of them two days later.

Matt Malley, chief market strategist for Miller Tabak + Co. Step down as CEO. This news means they don’t seem to want to do that anytime soon.”

Overall, MicroStrategy held about 132,500 bitcoins worth over $4 billion USD as of December 27th. The company paid an average purchase price of $30,397 per bitcoin.

“Given MicroStrategy’s $2.4 billion in leverage, we believe the company may have a lot of leverage over Bitcoin, and may face some liquidity risk,” Jefferies analyst Brent Thiel wrote in a note on Wednesday. Thill has an “underperform” rating on the stock and a price target of $110.

Over the years of the pandemic, MicroStrategy has become well known for its Bitcoin takeovers, largely led by Saylor. Earlier this year, Saylor stepped down from that role and now serves as CEO at the company and continues to lead its bitcoin strategy.

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MicroStrategy was trading around $120 before Saylor first announced the company’s Bitcoin purchases in 2020. The stock reached an all-time high of $1,315 in February 2021.

(Updates to include the stock’s closing price in the second paragraph.)

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Bankman-Fried May File Petition in New York Federal Court Next Week Before Judge Louis Kaplan By Cointelegraph

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Former FTX CEO Sam Bankman-Fried is set to appear in court on the afternoon of January 3 to enter a lawsuit over two counts of wire fraud and six counts of conspiracy against him related to the collapse of cryptocurrency exchange FTX, according to Reuters. mentioned on December 28, citing court records. Bankman-Fried will appear before District Judge Lewis Kaplan in Manhattan.

Judge Kaplan was appointed to hear the case on December 27 after the original judge in the case, Ronnie Abrams, Resigned herself because of connections between FTX and the law firm Davis Polk & Wardwell, where her husband is a partner. The company provided advisory services to FTX in 2021.