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AMD: Expect More Market Share Gains in 2021, States Analyst


Viewing the markets with an eye to the primary possibility, Raymond James strategist Tavis McCourt sees both danger and opportunity in present market conditions. The chance, in his viewpoint, stems from the apparent factors: the Democrats won both Georgia Senate seats in the recent overflow vote, offering the inbound Biden Administration bulk assistance in both Houses of Congress– and increasing the odds of meaningful fiscal support getting signed into law in the near term. More importantly, the coronavirus vaccination program is continuing, and reports are revealing that Pfizer’s vaccine, one of 2 authorized in the United States, is effective versus the new strain of the virus. A successful vaccination program will speed up the economic recovery, allowing states to loosen up lockdown guidelines– and get individuals back to work. The threats are also originating from the political and public health realms. Your House Democrats have passed articles of impeachment against President Trump, regardless of the imminent natural closure of his term of workplace, which passage minimizes the opportunities of political reconciliation in a greatly polarized environment. And while the COVID stress is matched by present vaccines, there is still a risk that a brand-new stress will establish that is not covered by existing vaccinations– which could restart the cycle of lockdowns and financial decrease. Another threat McCourt sees, beyond those two, would be a sharp rise in inflation. He does not discount that, but sees it as unlikely to take place soon. “… product/service inflation is just truly a possibility AFTER re-openings, so the marketplace feels a bit bullet proof in the really near term, and hence the continued rally, with Dems winning the GA races just intensifying to the stimulus fire,” McCourt kept in mind. Some of McCourt’s associates amongst the Raymond James expert cadre are keeping these risks in mind, and putting their imprimatur on strong dividend stocks. We’ve looked into Raymond James’ recent calls, and using the TipRanks database, we have actually picked two stocks with high-yield dividends. These Buy-rated tickers bring a dividend yield of 7%, a strong destination for investors interested in utilizing the current great times to establish a protective firewall software should the threats emerge. Business Products Partners (EPD) We’ll start in the energy sector, a business section long known for both high capital and high dividends. Enterprise Products Partners is a midstream business, part of the network that moves hydrocarbon products from the wellheads to the storage farms, refineries, and distribution points. Enterprise manages over 50,000 miles worth of pipelines, shipping terminals on Texas’ Gulf coast, and storage facilities for 160 million barrels oil and 14 billion cubic feet of gas. The company was hurt by low prices and low demand in 1H20, however partially recuperated in the 2nd half. Profits turned around, growing 27% sequentially to reach $6.9 billion in Q3. That number was down year-over-year, slipping 5.4%, however came in more than 6% above the Q3 projection. Q3 profits, at 48 cents per share, were just under the projection, but were up 4% year-over-year and 2% sequentially. EPD has recently declared its 4Q20 dividend circulation, at 45 cents per common share. This is up from the previous payment of 44 cents, and marks the very first boost in two years. At $1.80 annualized, the payment yields 7.9%. Among the bulls is Raymond James’ Justin Jenkins, who rates EPD a Strong Buy. The expert provides the stock a $26 price target, which implies a 15% upside from present levels. (To view Jenkins’ performance history, click on this link) Backing his bullish position, Jenkins noted, “In our view, EPD’s special combination of combination, balance sheet strength, and ROIC performance history remains finest in class. We see EPD as arguably finest placed to endure the unstable landscape … With EPD’s footprint, need gains, project development, and contracted ramps ought to more than balanced out supply headwinds and lower y/y marketing results …” It’s not often that the analysts all agree on a stock, so when it does occur, take note. EPD’s Strong Buy agreement rating is based on a consentaneous 9 Buys. The stock’s $24.63 average price target recommends a benefit of 9% from the current share cost of $22.65. (See EPD stock analysis on TipRanks) AT&T, Inc. (T) AT&T is one of the market’s immediately identifiable stock. The company is a member in long standing of the S&P 500, and it has track record as one of the stock market’s best dividend payers. AT&T is a real large-cap market giant, with a market cap of $208 billion and the biggest network of mobile and landline phone services in the US. Its acquisition of TimeWarner (now WarnerMedia), in a procedure running in between 2016 and 2018, has given the business a large stake in the mobile material streaming business. AT&T saw earnings and revenues decrease in 2020, under pressure from the corona pandemic– but the decrease was modest, as that exact same pandemic also put a premium on telecom and networking systems, which tended to support AT&T’s organization. Profits in 3Q20 were $42.3 billion, 5% listed below the year-ago quarter. On favorable notes, complimentary capital increased yoy from $11.4 billion to $12.1 billion, and the company reported a net gain of 5.5 million brand-new subscribers. The subscriber growth was driven by the brand-new 5G network rollout– and by premium material services. The business held up its track record as a dividend champ, and has actually made its latest dividend declaration for payment in February 2021. The payment, at 52 per common share, is the fifth in a row at present level and annualizes to $2.08, giving a yield of 7.2%. For contrast, the average dividend amongst tech sector peer companies is just 0.9%. AT&T has kept its dividend strong for the past 12 years. Raymond James expert Frank Louthan sees AT&T as a classic defensive worth stock, and explains T’s present state as one with the bad news ‘baked in.'” [We] believe there is more that can go right during the next 12 months than can become worse for AT&T. Include the reality that shares are heavily shorted, and our company believe this is a dish for upside. Large cap worth names are hard to come by, and we believe financiers who can wait a few months for a mean reversion while locking in a 7% yield must be rewarded for purchasing AT&T at present levels,” Louthan believed. In line with these comments, Louthan rates T an Outperform (i.e. Buy), and his $32 price target indicates room for 10% development from current levels. (To watch Louthan’s track record, click on this link) What does the remainder of the Street believe? Looking at the agreement breakdown, opinions from other experts are more spread out. 7 Buy rankings, 6 Holds and 2 Sells amount to a Moderate Buy consensus. In addition, the $31.54 average cost target indicates ~ 9% upside potential. (See AT&T stock analysis on TipRanks) To find excellent ideas for dividend stocks trading at attractive appraisals, see TipRanks’ Best Stocks to Buy, a newly launched tool that unifies all of TipRanks’ equity insights. Disclaimer: The opinions revealed in this article are solely those of the included analysts. The content is intended to be utilized for informative functions only. It is really important to do your own analysis before making any investment.

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