Wall Street's Most Accurate Analysts Weigh In On 3 Real Estate Stocks With Over 7% Dividend Yields
Friday, Jan 10, 2025 1:44 pm ET
5min read
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In the quest for high income, investors often turn to dividend-yielding stocks, particularly in the real estate sector. With the potential for consistent and growing dividends, these stocks can be an attractive addition to a well-diversified portfolio. Benzinga readers can review the latest analyst takes on their favorite stocks by visiting Analyst Stock Ratings page. Traders can sort through Benzinga's extensive database of analyst ratings, including by analyst accuracy. Below are the ratings of the most accurate analysts for three high-yielding real estate stocks.
1. Easterly Government Properties, Inc. (DEA)
- Dividend Yield: 7.64%
- Truist Securities analyst Michael Lewis maintained a Hold rating and raised the price target from $13 to $14 on Aug. 29. This analyst has an accuracy rate of 71%.
- RBC Capital analyst Michael Leithead Carroll downgraded the stock from Sector Perform to Underperform and cut the price target from $15 to $13 on Aug. 16, 2023. This analyst has an accuracy rate of 63%.
2. EPR Properties (EPR)
- Dividend Yield: 7.26%
- JP Morgan analyst Anthony Paolone maintained an Overweight rating and raised the price target from $48 to $51 on Sept. 9. This analyst has an accuracy rate of 66%.
- Truist Securities analyst Ki Bin Kim maintained a Hold rating and boosted the price target from $44 to $46 on Aug. 16. This analyst has an accuracy rate of 69%.
3. OUTFRONT Media Inc. (OUT)
- Dividend Yield: 6.46%
- JP Morgan analyst Richard Choe maintained a Neutral rating and raised the price target from $17 to $18 on July 31. This analyst has an accuracy rate of 62%.
- TD Cowen analyst Lance Vitanza initiated coverage on the stock with a Hold rating with a price target of $16 on July 16. This analyst has an accuracy rate of 79%.
These analysts' accuracy rates can influence the reliability of their recommendations. Higher accuracy rates generally indicate more reliable recommendations, while lower accuracy rates suggest a need for more caution when considering an analyst's advice. For instance, Truist Securities analyst Michael Lewis' recommendation for Easterly Government Properties (DEA) might be more reliable than that of RBC Capital analyst Michael Carroll, given Lewis' higher accuracy rate.
Investors should consider the factors contributing to these real estate stocks' high dividend yields, such as consistent and growing dividends, high dividend payout ratios, strong balance sheets, focus on high-demand markets, diversified revenue streams, and access to capital. However, they should also be aware of the primary risks and challenges faced by these companies, such as interest rate risk, market conditions and demand, regulatory and political risks, geographic concentration risk, acquisition and integration risk, and tenant default risk.
In conclusion, investors seeking high income should consider these high-yielding real estate stocks. However, they should carefully evaluate the recommendations of analysts, considering their accuracy rates, and weigh the potential risks and challenges before making investment decisions. By doing so, investors can make informed decisions and build a well-diversified portfolio tailored to their income goals.