Written by Ryan Hasson As market volatility and uncertainty increase and the likelihood of a September rate hike looms, some investors are paying attention to high-yield dividend stocks. These stocks provide steady income and offer the potential for capital appreciation. Here's a look at four top-rated, high-dividend-yielding stocks that could be attractive in the current market environment. VICI Properties: Bullish Analyst Sentiment and Growth Potential VICI Properties Inc. is a prominent real estate investment trust (REIT) specializing in owning, acquiring, and developing gaming, hospitality, and entertainment properties. With a market capitalization of $31 billion, VICI offers an impressive 5.49% dividend yield and has an attractively low P/E ratio of 11.96. Analysts are bullish on VICI, giving it a consensus Moderate Buy rating based on nine analyst ratings and a consensus price target of $33.44, which suggests a potential upside of 10.56%. Despite being down nearly 5% year-to-date, the stock has risen over 7% this month and recently broke out of a consolidation phase, indicating a possible shift in momentum. VICI has significant institutional ownership of almost 98% and has seen total institutional inflows over the previous twelve months of $3.94 billion compared to $2.3 billion in outflows. Energy Transfer: An Attractive Value and Income Play Energy Transfer LP operates midstream energy assets in the US, focusing on natural gas, crude oil, and their derivatives. With a dividend yield of 7.75%, an annual dividend of $1.27, and a P/E ratio of 15.04, ET is highly regarded among dividend stocks and remains an attractive value and income play. Eight Wall Street analysts gave ET a consensus rating of Moderate Buy, with one hold rating and seven buy ratings, forecasting a 17.4% upside. Year-to-date, the stock has performed well, up 18.4% and trading at its 52-week highs. Energy Transfer is set to report its next earnings on August 7, following a previous quarter where it reported $0.32 EPS, missing the consensus estimate of $0.36, but with revenue up 13.9% year-over-year to $21.63 billion. The company has projected earnings growth of 13.01% for the full year. Value and Income Play: British American Tobacco's Investment Appeal British American Tobacco p.l.c., one of the world's largest tobacco manufacturers, offers an 8.83% dividend yield and a forward P/E ratio of 6.63, making it a desirable value and income play based on those metrics alone. Year-to-date, the stock is up over 13%, maintaining a steady uptrend and currently about 3% away from its 52-week high. Based on ratings from three analysts, BTI has a consensus rating of Moderate Buy, with one hold rating and two buy ratings. Notably, British American Tobacco's non-combustible segment, which includes e-cigarettes and tobacco heating products, contributed 16.5% of the company's revenue last year, highlighting its successful business transformation. The company is expected to grow earnings by 7.10% for the full year, from $4.65 to $4.98 per share. Brookfield Infrastructure Partners' Global Reach and Diversification Brookfield Infrastructure Partners L.P. owns and operates utilities, transport, midstream, and data businesses across the Americas, Europe, and the Asia Pacific. The stock is top-rated among dividend stocks, offering a 5.33% dividend yield. Ten Wall Street analysts have given BIP a consensus rating of Moderate Buy, with a price target forecasting a 25.5% upside. This diversified infrastructure company is well-positioned to benefit from global growth in infrastructure spending. The company has been growing despite higher interest rates, and its attractive valuation and dividend yield make it a compelling investment. With expected interest rate cuts later this year, the stock could begin to gain its footing and stage a rally in the latter part of the year. High-Yield Dividend Stocks: Stability and Income in Uncertain Markets High-yield dividend stocks can provide stability and income in an uncertain market environment. VICI Properties, Energy Transfer, British American Tobacco, and Brookfield Infrastructure Partners are four top-rated dividend stocks that offer attractive dividends and potential for capital appreciation. While each stock has its unique strengths and risks, they all might present compelling opportunities for income-focused investors. Written by Jea Yu Ally Financial Inc. (NYSE: ALLY) is a digital financial services company offering a range of financial products to consumers and businesses. The company is a one-stop shop for financing and banking services. The company has over 3 million customers and was ranked #1 for mid-sized banking and financial services company for 2024 by Time Magazine. The stock triggered a sell-the-news reaction upon releasing its Q2 2024 earnings, which handily exceeded consensus EPS estimates by more than 50%. Ally Financial operates in the financial services sector and competes with fintech companies like Sofi Technologies Inc. (NASDAQ: SOFI), Robinhood Markets Inc. (NASDAQ: HOOD), and Discover Financial Services Inc. (NYSE: DFS). Ally Financial’s Portfolio of Financial Products Ally Financial is an all-digital direct bank serving over 3 million customers. It is also the largest car auto finance provider in the country, serving 22,000 dealers and processing over $400 billion in application volume annually. Ally offers commercial property and casualty (P&C) insurance through 4,000 P&C dealers offering inventory and garage coverage. It offers consumer finance and insurance (F&I) through 2,000 dealers. Ally Bank offers a range of online banking services, including checking and savings accounts. It boasts 3.2 million deposit customers, maintaining a 96% retention rate, and reports $142.1 billion in retail deposits, 92% of which are FDIC-insured. Additionally, Ally achieves a 90% customer satisfaction rating and has 1.2 million customers actively engaged with core savings products. Approximately 10% of its depositors also hold accounts with Ally Invest and Ally Home or have card relationships. Robo Portfolios Are Human Designed and Machine Automated Ally Invest offers stock brokerage services with research tools and professional insights. It also offers robo portfolios, which are a step above conventional robo-advisors. They combine humans with machine algorithms. The four portfolio recommendations are comprised of diversified ETFs tailored to the customer’s risk tolerance, time frames, and goals. It automatically rebalances and updates portfolio positions. Cash-enhanced robo portfolios have no advisory fees and put aside 30% in interest-bearing accounts to act as a buffer against volatility. Currently, the interest is 4.2% annually, paid out monthly. Market-focused portfolios have a 0.30% annual advisory fee charged monthly and set aside 2% in cash. ALLY Stock Attempts an Ascending Triangle Breakout The daily candlestick chart on ALLY illustrates an ascending triangle breakout pattern. The pattern is comprised of a flat upper trendline resistance at $41.77, converging with a lower ascending trendline, indicating higher lows. The breakout triggered heading into its Q2 2024 earnings release. A sell-the-news reaction occurred in the following days, sending shares back toward the upper triangle resistance level at $41.77. The daily relative strength index (RSI) peaked at the 80-band and fell back under the 55-band. Pullback support levels are at $41.77, $39.04, $37.23, and $34.85. Ally Financial Posts a Strong Q2 2024 EPS Beat Ally reported Q2 2024 EPS of 97 cents, beating analyst expectations by 33 cents. Revenues fell 3.8% YoY to $2 billion, falling short of the $2.03 billion consensus analyst estimates. The net interest margin (NIM) fell 11 bps to 3.27% due primarily to higher funding costs, which were partially offset by the continuing strength of new origination yields. Provisions for credit losses increased by $30 million YoY to $457 million, driven by higher net charge-offs. Ally expects a full-year NIM of 3.30% versus 3.25% to 3.30% prior guidance. Adjusted operating revenue growth of 12% is expected versus 9% to 12% YoY. Ally Financial CEO Remains Upbeat Michael Rhodes had his first conference call as the new CEO of Ally Financial for Q2 2024. He pointed out that Ally has been in the auto finance business for over 100 years and has grown to be the nation’s largest auto finance bank. Ally provides auto financing to nearly 4 million customers. Rhodes extolled the virtues of integrity, innovation, customer obsession, and relentless focus on execution ingrained in the company culture. Its insurance products complement its auto finance business. It’s produced over $1 billion in annual written premiums, including $1.3 billion in 2023. The company has over 600 experienced underwriters. The company has made significant investments to modernize its technology platform, continuously investing in data and analytics. Rhodes commented on the synergies between products, “Ally Invest and Ally Home are key components to the overall depositor value proposition. Customers are primarily sourced from existing Ally depositors, and we've built a solid foundation focused on strengthening the customer experience. An Ally credit card provides an opportunity to add a floating rate product with attractive returns to the balance sheet.” Ally Financial analyst ratings and price targets are at MarketBeat. The 19 analyst ratings comprised nine Buys, eight Holds, and two Sells. Did you miss out on the 1000%+ gains of Bitcoin over the past 5 years?
If so, you don't want to miss this... Watch this short video Written by Jea Yu Fast casual health food restaurant chain Sweetgreen Inc. (NYSE: SG) shares have had a healthy pullback towards its Q1 2024 earnings gap fill price level at $24.03. The company had a stellar first-quarter earnings report back on May 9, 2024 that launched its stock from $24.03 to a high of $36.72 afterward. Shares may have gotten ahead of themselves, but now they've pulled back to a very important support level. Investors who missed the earlier run-up are getting a second chance to partake in the company’s improved path to profitability ahead of its Q2 2024 earnings release due after the close on Aug. 8, 2024. Sweetgreen competes in the consumer discretionary sector with rival fast-casual restaurants Chipotle Mexican Grill Inc. (NYSE: CMG), CAVA Group Inc. (NYSE: CAVA), El Pollo Loco Holdings Inc. (NASDAQ: LOCO). Salad Chain Needed a Shot in the Arm Sweetgreen was a struggling, fast-casual, health-oriented restaurant primarily selling market-fresh, hand-cut, locally sourced organic salads and bowls. They routinely stock nearly 50 ingredients to make their artisan salads. The company struggled with rising labor costs, which took up 29% of its total revenues. The appeal of the salad chain had a narrow audience, but things changed with the addition of steak to its menu. During its testing phase in Boston, the Caramelized Garlic Steak quickly became a dinner-time favorite. In fact, 20% of all dinner orders included steak. The market test was an unbridled success as it started to roll out steak across all its restaurants. Carnivores Take Notice of a Game Changer Addition to the Menu This changed with the introduction of steak to its menus, which was a game-changer. Its tender cuts of grass-fed steak, expertly roasted and seasoned with a garlic spice blend in a finish of oils and herbs, was a major hit. Adding this beef protein option expanded its target audience. Carnivores took note as the protein options took a leap from Buffalo Chicken, BBQ Chicken, Hot Honey Chicken, Miso Glazed Salmon, and Fish Taco to include Caramelized Garlic Steak now. The fleet-wide steak addition was launched on May 7, 2024. The first quarter ended at the end of March 2024. SG Stock Triggers a Second Bear Flag at the Gap Fill Level The daily candlestick chart on SG illustrates a second bear flag pattern. The first bear flag breakdown formed when shares fell through the $29.02, selling off to $22.71 and closing at the post-earnings gap, filling price support at $24.20. SG rallied to $27.49 but fell below the $25.19 ascending lower trendline to retest the gap-fill support level at $23.03. This level is significant and needs to be held in order to stage a meaningful rally. The daily relative strength index (RSI) is attempting to bounce at the 37-band. If it can bounce through the 50-band, then a divergence bottom can form. Pullback support levels are at $24.03, $21.66, $18.77, and $17.26. The Key Takeaways From Q1 2024 Earnings On the surface, Sweetgreen's Q1 2024 earnings report didn't stand out as a barn burner. The company missed consensus EPS estimates by 5 cents with a loss of 23 cents. Revenues were robust, growing at 26.2% YoY to $157.85 million versus $152.02 million. The most impressive metric was the strong same-store sales (SSS) growth of 5% versus 3% prior guidance. This happened organically, even before the rollout of the Caramelized Garlic Steak. Sweetgreen took a conservative in-line guidance stance with full-year 2024 revenues of $660 million to $675 million versus $666.85 million consensus estimates. However, this was raised from its previous forecast of $655 million to $675 million. SSS was also raised to 4% to 6% versus the previous guidance of 3% to 5%. The Impact of the Steak with Start in Q2 2024 Remember that the first-quarter earnings report didn't include the impact of the Caramelized Garlic Steak's addition to the menu. In fact, the launch occurred on May 7, 2024, in the middle of the second quarter. The full impact of the steak's addition will be seen in Q3 2024. During its steak testing in Boston, Massachusetts, nearly 1 in 5 dinners ordered was steak. The question is whether the steak was ordered instead of an existing salad option or if the steak bowl order came from a net new customer. Ideally, the steak should attract a wider audience rather than be a substitute for what an existing customer normally orders. This will be evident in the SSS metric. AI and Robotic Automation Through Infinite Kitchens In 2021, Sweetgreen acquired Spyce, a restaurant that uses automated robots designed by MIT engineers to prepare lunch bowls. This acquisition was seen as a stepping stone for future restaurant concepts leading up to its IPO. Sweetgreen launched its first Infinite Kitchen in Naperville, Illinois, on May 10, 2024. It’s the world’s first robot-driven Sweetgreen restaurant. Customers come in and order their salads at the counter on a tablet and then watch as the salad gets constructed automatically in an assembly-like fashion on a conveyor belt. The apparatus is a large metal wall outfitted with glass tubes that store all its ingredients. The machines seamlessly build the salads to order, going from one station to the next as each ingredient is added on through to a human who tops it off with the finishes and presents for pickup. Rise of the Machines: 7 New Infinite Kitchens to Open in 2024 By the end of Q1 2024, the two Infinite Kitchens located in a suburban area are averaging a $2.6 million annual revenue run rate. The average Q1 margin was 28%, a 10-point improvement versus the human fleet average. The robots are quicker, more accurate, and more consistent with ports, and they also generate higher average checks in the markets in which they operate. The Infinite Kitchen has the capacity to crank out 500 bowls an hour. Sweetgreen plans to open seven new Infinite Kitchen Sweetgreen restaurants in 2024 and retrofit one in New York City. Sweetgreen analyst ratings and price targets are at MarketBeat. There are 11 analyst ratings comprised of eight Buys and three Holds, with an average consensus price target 33% higher at $32.20. This key unlocks a new pathway to wealth that has been kept hidden from you for decades.
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