New Residential Investment (NRZ-$18) is a real estate investment trust. NRZ invests in mortgage servicing, real estate securities, residential mortgage loans, consumer and corporate loans, and agency and non-agency residential mortgage securities. The $2 dividend yields 11.1 percent, has been increased annually since 2012 and may be increased again in 2018. Zacks and Thomson Reuters are bullish.
AmeriGas Partners (APU-$45) is a retail propane distributor serving 2.1 million residential, commercial, agricultural, industrial and wholesale customers from 2,066 locations in all 50 states. The $3.80 dividend yields 8.3 percent and has increased for 25 consecutive years. Bank of America, UBS and Jefferies don’t like APU, but I do!
Macquarie Infrastructure Corp. (MIC-$65) is a $1.9 billion-revenue firm whose operations include airport services, contracted power and energy, natural gas distributions, and liquid storage terminals. Revenues have doubled since 2011, and the $5.40 dividend, which has increased annually since then, yields 8.7 percent. Improving net profit margins could increase the 2018 dividend to $6. Zacks, Morningstar and J.P. Morgan recommend MIC.
W.P. Carey (WPC-$70), a self-managed real estate investment trust, owns and manages 1,380 commercial real estate properties in the U.S. and Europe. The $4.02 dividend, yielding 5.7 percent, has been raised annually for 25 years. Ned Davis Research and Market Edge recommend selling WPC, while Standard & Poor’s and Oppenheimer are buyers.
AmTrust Financial Services (AFSI-$10), through its subsidiaries, underwrites property and casualty insurance, workers’ compensation, inland marine insurance, custom-designed coverage for accidental damage and payment protection plans, reinsurance, and professional and medical liability. AFSI has enjoyed good annual revenue, income and dividend growth since 2009. The 68-cent dividend yields 6.8 percent. Citigroup and Thomson Reuters are recommending AFSI.
IBM (IBM-$155) has been losing revenues since 2010, though since then, the dividend has grown from $2.50 to $5.90, and it yields 3.9 percent. Revenues should begin to improve, and the 2018 dividend may be raised to $6.35. Argus Research, Market Edge, Standard & Poor’s, Value Line, Edward Jones, Morgan Stanley, Oppenheimer, Deutsche Bank, Bank of America, J.P. Morgan and Stifel Nicolaus recommend IBM.
Because I, not your broker, picked these stocks, you should insist on a big discount. If he refuses, go to Charles Schwab. Schwab will charge you $40 to buy the whole shebang.
Malcolm Berko addresses questions about stocks. Reach him at P.O. Box 8303, Largo, FL 33775 or mjberko@yahoo.com.