This is a top financial services and insurance company, and only 15% of funds hold the shares. Prudential Financial Inc. (NYSE: PRU) is a global diversified life insurer with operations predominantly in the United States and Japan. The U.S. business underwrites and distributes annuities, life insurance, group benefits, asset management and retirement products and solutions. The international businesses primarily operate in Japan through captive agency and independent agency distribution with a focus on life insurance.
PGIM is the global asset management business of Prudential Financial, and it ranks among the top 10 largest asset managers in the world, with more than $1.4 trillion in assets under management as of June 30, 2020. With offices in 16 countries, PGIM’s businesses offer a range of investment solutions for retail and institutional investors around the world across a broad range of asset classes, including public fixed income, private fixed income, fundamental equity, quantitative equity, real estate and alternatives.
The insurance giant pays investors a 6.46% dividend. CFRA’s $80 price target is higher than the $71.36 consensus price objective. Prudential Financial ended last week at $68.12 a share.
This Wall Street favorite is a very solid energy play for more conservative balanced accounts. Valero Energy Corp. (NYSE: VLO) is one of the largest independent petroleum refining and marketing companies in the United States. It is based in San Antonio, Texas; owns 13 refineries in the United States, Canada and Europe; and has a total throughput capacity of around 2.5 million barrels per day.
Valero also is a joint venture partner in Diamond Green Diesel, which operates a renewable diesel plant in Norco, Louisiana. Diamond Green Diesel is North America’s largest biomass-based diesel plant.
Valero sells its products in the wholesale rack or bulk markets in the United States, Canada, the United Kingdom, Ireland and Latin America. Approximately 7,400 outlets carry Valero’s brand names.
Investors receive a 7.08% dividend. The very bullish BofA Securities analysts have an $83 price target. The consensus target is $71.89, and Valero Energy stock was last seen trading at $46.39 a share.
This is a larger net Lease real estate investment trust (REIT) with an incredible distribution for income buyers. W.P. Carey Inc. (NYSE: WPC) ranks among the largest net lease REITs, with an enterprise value of approximately $17 billion and a diversified portfolio of operationally critical commercial real estate that includes 1,163 net lease properties covering approximately 131 million square feet.
For over four decades, the company has invested in high-quality single-tenant industrial, warehouse, office and retail properties subject to long-term leases with built-in rent escalators. Its portfolio is located primarily in the United States and northern and western Europe, and it is well-diversified by tenant, property type, geographic location and tenant industry.
While real estate is struggling somewhat now, net lease REITs generally rent properties with long-term leases (10 to 25 years) to high credit-quality tenants, usually in the retail and restaurant spaces. “Net lease” refers to the triple-net lease structure, whereby tenants pay all expenses related to property management: property taxes, insurance and maintenance.
Investors receive a 6.11% distribution. BofA Securities has set a $77 price target. The consensus target is $76, and WP Carey stock closed Friday trading at $68.18.
Note that any or all these companies could at some point cut their dividends. With that in mind, investors have a chance to buy all five at discount pricing with huge dividend payouts. Even if a recovery in the share prices takes a while, the high dividends will make the wait more than tolerable.