“If investing is entertaining, if your having fun, you’re probably not making any money. Good investing is boring.”
The words are George Soros’, and whatever you may think of his politics or activism, it is impossible to deny that he is one of the world’s greatest stock market investors. In some 30 years of active trading, his hedge fund saw an annualized average return exceeding 30%; it was one of the greatest runs of sustained profits in Wall Street’s history. Soros ran his hedge fund behind the scenes, building a portfolio based on reliable dividends and solid returns.
He has continued that strategy in recent years, after taking his firm private. Considering his aphorism, ‘Good investing is boring,’ it’s no wonder that Soros gravitates toward stocks with proven returns. His recent new positions simply bear this out, as Soros has bought into three stocks considerable return potential – dividend yields of 4.5% or better and upside potential starting at 15%, according to the analyst community.
TipRanks database to find out what else makes these picks so compelling.” data-reactid=”19″With this in mind, we used TipRanks database to find out what else makes these picks so compelling.
BXMT)” data-reactid=”20″Blackstone Mortgage Trust (BXMT)
The first Soros pick we’re looking at is Blackstone Mortgage Trust, a real estate investment trust. It’s no wonder that Soros turned to BXMT if he was looking for dividend returns – REITs are well known for their high-yield dividends. Blackstone, which holds a portfolio exceeding $167 billion in real property assets under management, focuses on collateral-based senior mortgage loans in the Western markets: North America, Europe, Australia.
After a hard hit in Q1, due to the coronavirus crisis, Blackstone’s Q2 report gave investors a pleasant surprise by beating expectations on both revenues and EPS. While the top line came in at $107.1 million, or 1% above the forecast, the per-share earnings of 56 cents showed a stronger beat of 14%.
In a display of confidence, the company has kept its dividend payment stable through the chaotic first half of the year. The 62-cent quarterly dividend was paid out in mid-July, and at $2.48 per share annualized, it offers investors a robust 10.3% return. That’s more than 5x the average found among S&P listed stocks – and 4x the average found among peer companies in the financial sector.
High returns are always an attraction for Soros, and he initiated his position in BXMT with 355,000 shares. At current share prices, these shares are worth more than $8.5 million.
Donald Fandetti, covering BXMT from Wells Fargo, sees reason for optimism in Blackstone’s balance sheet, and what that means for the dividend. He writes, “Reflecting a competitive advantage, BXMT was able to raise $607 mm of debt and equity capital in the quarter, boosting their liquidity to $1.3B (mostly cash). This puts them in a position to go on offense as high return opportunities begin to arise… We believe BXMT will continue paying their quarterly dividend unless the economic situation deteriorates further…”” data-reactid=”25″Analyst Donald Fandetti, covering BXMT from Wells Fargo, sees reason for optimism in Blackstone’s balance sheet, and what that means for the dividend. He writes, “Reflecting a competitive advantage, BXMT was able to raise $607 mm of debt and equity capital in the quarter, boosting their liquidity to $1.3B (mostly cash). This puts them in a position to go on offense as high return opportunities begin to arise… We believe BXMT will continue paying their quarterly dividend unless the economic situation deteriorates further…”
click here)” data-reactid=”26″Fandetti’s comments back up his Overweight (i.e. Buy) rating, and his $33 price target suggests a 37% upside for BXMT in the coming year. (To watch Fandetti’s track record, click here)
See BXMT stock analysis on TipRanks)” data-reactid=”27″Overall, Blackstone Mortgage has a Moderate Buy rating from the analyst consensus, with 5 recent reviews breaking down to 2 Buys and 3 Holds. Shares are selling for $23.79, and the $27.75 average price target implies a 15% upside potential. (See BXMT stock analysis on TipRanks)
TFC)” data-reactid=”40″Truist Financial (TFC)
Formed this past December, through a merger between SunTrust and BB&T, Truist is the eighth largest bank holding company in the US. Its main subsidiaries operate over 2,000 bank branches in 17 states, with company headquarters in Charlotte, North Carolina. Like many banks with a reliance on brick-and-mortar retail branches, the company’s shares saw heavy depreciation during the corona crisis, and have only partially recovered.
Through the hard 1H20, Truist…