Wednesday, February 8, 2023

Two High-Yield Dividend Stocks to Close Out, According to Jefferies

Inflation, central bank interest rate hike and unemployment have supported Stock market decline throughout the year, because of this reason Jefferies to signal The Two High-Yield Dividend Stocks on Wall Street to put purse defense mode According to TipRanks and Yahoo Finance: Global Ship LS RG-A why Chesapeake Ener,

The logical move at this point is for investors who want to stay in the shares defensive move, That’s the thesis behind the recent note by Jefferies equity strategist Steven DeSanctis, He added: “We were pleased to see a change in sentiment towards high performance… Defense is the name of the game these days.”

With this in mind, analysts at Jefferies have selected Two stocks with high dividend yields, with one paying up to 13% as you go right. these are traditional defensive playbecause they ensure a With consistent yields, and reliable dividends that deliver well above average yieldsToo can beat inflation,

Global Ship Lease: Dividend that floats on the seas

Global Ship Lease this is a Independent owner-operator in the global shipping industryWith a fleet of 65 small to medium-sized container ships, the pinnacle of the world’s maritime trade lanes. boats of this type They carry virtually any type of cargo and account for over 70% of the world’s containerized trade volume., Global Ship General Rent out your boat and get a source of income from daily charter fees during the contract period of each vessel. At the end of third quarter This year, the company had $2.2 billion worth of charter contracts with an average of 2.9 years remaining on their contracts,

In early November, GSL published this 3Q22 Financial Results And showed profit on both top and bottom side. Total revenue reached $172.5 million, up 11.6% over the second quarter and up 24.4% over the same quarter last year, These top-line results are part of a strong 2022 trend towards higher revenue; During the nine months ended September 30, the Company experienced a 63% year-over-year increase in revenue,

In short, Net income of $92 million represented an increase of 41% year-over-year. Net income available to common stockholders was reported at $89.6 million, up 42% year-over-year., by action, EPS of $2.44 grew 41% from the $1.73 reported in 3Q21.

These strong earnings supported the dividend of the company, which was reported at 0.38 cents per common share And it was paid on 2 December. at this rate, The dividend is annualized for $1.50 per share and yields 9.2%. this is performance That’s more than 4 times the average found among S&P-listed companies, and 1.5 points higher than the previous reported inflation rate.

Jefferies 5-Star Analyst Omar Noctais impressed with GSL’s execution in recent months and writes: “The company is in a very strong position with considerable revenue generation, fueled during the quarter with the fixing of 10 vessels on forward charters, and very flexible going into the future.” … By taking a conservative and disciplined approach, we believe that GSL has sufficient flexibility to take advantage of opportunities that may arise in the future…”

“In our view, the performance is compelling given that the payout accounts for only a quarter of the company’s ongoing free cash flow. Management also repurchased $15.1 million of its outstanding shares during September and OctoberNocta added.

For this, Nocta installs Buy rating with $25 price target, which implies room for 55% stock appreciation On a one year timeline. Based on the current dividend yield and expected price appreciation, the stock has a Potential Total Return Profile 64%.

Other analysts are on the same page 3 buy and no hold or sellword on Wall Street is that GSL is a Strong Buy, is a in action $32.67 average price target, for one One year growth potential of 102%.

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Global Ship LS RG-A It is trading at $16.18 and the 70-period moving average is above the previous candle. Meanwhile, EI indicators are mostly bearish.

Chesapeake Energy: Energy with a yield of 13%

Chesapeake I am a large-cap player Hydrocarbon Exploration and Development, company Works across North America and has the important property Many of the most productive natural gas fields in North America, including the Eagle Ford Formation of Texas, the Marcellus Shale of Pennsylvania, and especially the Haynesville Formation of Louisiana, at the end of last year, confirmed reservation were mainly from the Chesapeake natural gas, with 69%, but they contained enough natural gas liquids (8%) and oil (23%).

Chesapeake’s strong base of real-world assets supports the company’s strong financial results. Both revenue and profit have been on an upward trend since the second quarter of last year, in the report of 3T22Last Published, Company Reported over $4.1 billion in total revenue, Cash from operations reached over $1.3 billion, and net income of $883 million translated to earnings per share of $6.12, on an adjusted basis, Revenue of $730 million generated adjusted diluted EPS of $5.06, up 112% over 3Q21,

Of particular interest to investors, as it directly supports the company’s dividend policy, Chesapeake reported. Record quarterly free cash flow in the third quarter of $773 million, Chesapeake managed this bottom line though Returned $1.9 billion to shareholders during the quarter through a combination of share repurchases and dividend payments,

Final Declared DividendCounting both regular and supplemental payments, $3.16 amount And it was paid on the 1st of December. on current payment, The dividend is annualized at $12.64 per common share and the yield is an impressive 13.4%. It is a rare stock which gives total dividend yield of 6 times above average.

In his Chesapeake coverage for Jefferies, Lloyd Byrne, another one of Jefferies’ 5-Star analystssees several reasons to remain optimistic about the stock, stating: “We see CHK’s valuation, well-positioned assets, strong returns for shareholders, and continued progress on Haynesville’s strategy … has a strong and balanced profitability structure. . By the 22nd, CHK will return $2.3 billion, or 17% of its current market capitalization.”

“We believe the company will continue to add opportunistic basis/hedges/physical contracts with established spreads to its profile through 2023, helping to protect yields in a potentially volatile gas market,” Byrne said.

Looking ahead, Byron him Buy rating with $150 price target with a target of 56% upside in the next 12 months,

Overall Chesapeake has earned 6 Recent Reviews Wall Street analysts and their opinions include 5 purchases on single withholdingto a consensus rating of strong buy about actions. is a in action The current price target of $146.33 suggests 53% one-year upside potential.

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Chesapeake Ener It closed the Wednesday session at $95.83 and is around the 70 and 200 periods moving average price, the former above the former. Which will give us a bullish signal. Meanwhile, EI indicators are mixed.

Nation World News Desk
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