Three securities are topping the S&P 500 index in terms of higher dividend yield Monday. The dividend yield for the benchmark of the U.S. stock market was 1.90% as of Friday.
These stocks are Ready Capital Corp. (RC, Financial), Orchid Island Capital Inc. (ORC, Financial) and BRT Apartments Corp. (BRT, Financial).
In addition, Wall Street issued a hold recommendation rating for Orchid Island, suggesting that investors with current long positions should maintain them because this stock is expected to perform at least in-line with its comparable companies operating in the real estate sector.
The following quarters should be positive for real estate investors. The position of the Federal Reserve to remain patient about contractionary monetary policy, as expressed by its committee during the May meeting, as a result of the U.S. economy's ongoing solid growth, should boost real estate demand as long as the labor market stays strong.
For shares of Ready Capital and BRT Apartments, also operating in the real estate sector, sell-side analysts released an overweight recommendation rating, indicating these stocks are foreseen to outperform the overall market within 52 weeks. The two major benchmarks for the U.S. stock market are forecasted to decline over the same span of time. Forecasters indicated that the Dow Jones Industrial Average index will lose nearly 10% until the first quarter of 2020 and that the S&P 500 index will drop approximately 9.7%.
Shares of Ready Capital Corp. closed at $15.25 on Friday with a market capitalization of $680.02 million. The stock has a forward dividend yield of 10.49% versus the industry median of 5.84%.
The New York-based real estate finance company has paid quarterly dividends since December 2013.
On July 31, Ready Capital will pay a quarterly dividend of 40 cents per share, which is in-line with the previous payment, to shareholders of record as of June 28. The ex-dividend date is scheduled for June 27.
The stock also has a price-book ratio of 0.61 versus the industry median of 1.1 and a price-earnings ratio of 6.85 versus the industry median of 15.5.
The stock declined 5% over the 52 weeks through June 14. Shares are trading slightly above the 200- and 100-day simple moving average lines and substantially above the 50-day simple moving average line. The 52-week range is $13.44 to $17.30.
GuruFocus assigned a rating of 4 out of 10 for the company's financial strength and a 6 out of 10 rating for its profitability and growth.
The 14-day relative strength index of 64 suggests the stock is neither overbought nor oversold.
Orchid Island Capital Inc. closed at $6.4 on Friday with a market capitalization of $342.45 million. The stock has a forward dividend yield of 15% versus the industry median of 5.84%.
The Vero Beach, Florida-based investor in residential mortgage-backed securities has paid dividends since December 2013.
On July 31, Orchid Island Capital will pay a monthly dividend of 8 cents, which is an 11.11% decline year-over-year, to shareholders of record as of June 28. The ex-dividend date is scheduled for June 27.
The stock also has a price-book ratio of 0.92 versus the industry median of 1.1 and a price-to-free-cash-flow ratio of 6.62 compared to the industry median of 18.09.
The share price decreased 15% for the past year through June 14 to below the 200-, 100- and 50-day simple moving average lines. The 52-week range is $5.83 to $8.35 per share.
GuruFocus assigned a financial strength rating of 6 out of 10 and a profitability and growth rating of 3 out of 10.
The 14-day relative strength index of 52 suggests the stock is neither overbought nor oversold.
BRT Apartments Corp. closed at $12.95 per share on Friday with a market capitalization of approximately $205.91 million. The forward dividend yield is 6.18% versus the industry median of 5.84%.
The Great Neck, New York-based real estate investment trust company has paid quarterly dividends from 1986 to 1990, from 2001 to 2009 and from 2017 through April 5. On July 9, BRT Apartments will pay a 20-cent cash quarterly dividend, which is in-line with its previous payout, to shareholders of record as of June 25. The ex-dividend date is scheduled for June 24.
The stock also has a price-book ratio of 1.08 versus the industry median of 1.1, a price-sales ratio of 1.62 versus the industry median of 7.55 and a price-to-owner-earnings ratio of 22.02 compared to the industry median of 14.08.
A 1% decline for the past year through June 14 sent the share price below the 100- and 50-day simple moving average lines. The share price is still above the 200-day SMA line. The 52-week range is $10.91 to $14.35.
GuruFocus assigned a rating of 3 out of 10 for the financial strength of the company and a rating of 7 out of 10 for the profitability and growth.
Wall Street issued an average target price of $14.70 per share of BRT Apartments Corp which represents a 13.5% growth from the share price at close on Friday.
The 14-day relative strength index of 40 suggests the stock is neither oversold nor overbought.
Disclosure: I have no positions in any securities mentioned.
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