5 Raymond James Analyst Favorite Stocks Look Safe and Pay Big, Dependable Dividends


This is another strong idea for investors nervous about the stock market. PotlatchDeltic Corp. (NASDAQ: PCH) is a leading REIT that owns 1.8 million acres of timberlands in Alabama, Arkansas, Idaho, Louisiana, Minnesota and Mississippi. The company also operates six sawmills, an industrial-grade plywood mill, a residential and commercial real estate development business and a rural timberland sales program.

A favorite of ESG investors, PotlatchDeltic, is a leader in sustainable forest management. It is committed to environmental and social responsibility and to responsible governance.

In July, the company reported net income and revenues that were far better than the results in the year-ago quarter.

Shareholders receive a 3.31% dividend. Raymond James has set its price objective at $75. That is well above the $63.83 consensus target. Wednesday’s final trade was reported at $49.55.

Redwood Trust

This is a very solid play for income investors looking for a reasonably safe vehicle. Redwood Trust Inc. (NYSE: RWT) operates as a specialty finance company in the United States. The company operates through three segments.

The Residential Lending segment operates a mortgage loan conduit that acquires residential loans from third-party originators for subsequent sale, securitization or transfer to its investment portfolio. This segment also offers derivative financial instruments to manage risks associated with residential loans.

The Business Purpose Lending segment operates a platform that originates and acquires business purpose loans, such as single-family rental and bridge loans for subsequent securitization or transfer into its investment portfolio.

The Third-Party Investments segment invests in residential mortgage-backed securities issued by third parties, as well as in K-Series multifamily loan securitizations and SLST reperforming loan securitizations. This segment also offers servicer advance and other residential and multifamily credit investments.

The company qualifies as a REIT for federal income tax purposes, and it intends to distribute at least 90% of its taxable income as dividends to shareholders.

Shareholders pocket a sweet 5.91% distribution. Raymond James has a $16 price target. The $14 consensus target is closer to Wednesday’s closing trade of $12.19.

While none of these stocks soon will be making any massive parabolic moves higher, they are safer ideas for nervous investors to move to as we hit the rocky time of the trading year. Also note that REIT distributions can contain return of principal.

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