Investors looking for high yields may want to consider investing in stocks that are currently unpopular with Wall Street analysts. While analysts are typically bullish on the companies they cover, those that are out of favor may represent opportunities for contrarian investors. Here, we will review seven stocks that offer dividends of up to 12.9%, despite being disliked by Wall Street.
Xerox, a tech company, offers a 7.2% yield, but has not experienced dividend growth in recent years due to its stagnant business. Similarly, Western Union, a money transfer service, provides a 7.1% yield, but has struggled to keep up with technological advances, leading to a decline in its share price. Both companies have received mixed reviews from analysts, with more Hold and Sell ratings than Buy ratings.
Moving to the real estate investment trust (REIT) sector, Alexander’s and Peakstone Realty Trust offer high yields of 8.3% and 6.0%, respectively. While Alexander’s has faced challenges with dividend coverage in the past, recent improvements in its financial performance may lead to a more sustainable payout. Peakstone, on the other hand, is a newer REIT that is undergoing portfolio repositioning to enhance its long-term prospects.
National Storage Affiliates Trust (NSA), a self-storage REIT, provides a 6.0% yield and has a unique business model that sets it apart from its peers. Despite being negatively viewed by Wall Street, NSA’s dividend is well-covered, indicating stability in its payout. While the industry has faced challenges, including high home prices and recession fears, improvements in the overall environment have been beneficial for NSA and similar companies.
Buckle, a fashion retailer, offers a 10.0% yield and has a history of strong operational performance, despite recent weakness. Prospect Capital, a business development company (BDC), provides a high yield of 12.9% but has faced challenges with dividend cuts and share price performance. Both companies have received mixed ratings from analysts, with some expressing pessimism about their long-term prospects.
Overall, while these stocks may not be popular with Wall Street, they represent opportunities for investors seeking high yields and contrarian opportunities. It is important for investors to conduct their own research and consider the long-term prospects of these companies before making investment decisions. Ultimately, a diversified portfolio that includes a mix of high-yield and growth stocks may provide the best risk-adjusted returns for investors.
