The stock market has seen a significant rebound in recent months, but can it sustain its growth? Barry Bannister, chief equity strategist at Stifel, believes that the current rally is unsustainable due to high valuations. According to Bannister, the S&P 500 index could drop as low as 5,500, representing a nearly 15% decline.
Despite this bearish outlook, Bannister recommends defensive moves for investors, focusing on high-yield dividend stocks. Dividend-paying stocks offer a steady income stream and can provide a sound return above inflation rates.
Two dividend stocks that analysts are picking as buys are Ellington Financial (EFC) and Dorian LPG (LPG). EFC is a REIT with a diverse investment portfolio, including residential and commercial mortgage loans, and has a high yield of 11.5%. Analysts at Piper Sandler and Jefferies have given the stock a Buy rating, citing attractive opportunities for growth.
Dorian LPG, on the other hand, is a leading carrier of energy, with a fleet of modern VLGC vessels. The company pays an irregular dividend, but has been paying out consistently since 2021. Analyst Omar Nokta at Jefferies believes that the company’s shares are undervalued and points to strong upcoming results.
Both stocks have received positive analyst reviews, with Ellington Financial having a Moderate Buy consensus rating and Dorian LPG having a Buy consensus rating. However, it is essential for investors to conduct their own analysis before making any investment decisions.
Source: https://www.tipranks.com/news/article/seeking-up-to-11-dividend-yield-analysts-pick-2-dividend-stocks-to-buy