After hefty gains in 2019, when the S&P 500 added 29%, most analysts are predicting that markets will show decidedly more modest gains in 2020. The consensus view is, that stocks will appreciate between 3% and 5% in the coming year. While it’s not a gloomy picture, it does mean that investors will need to look outside of share prices for strong returns.
This will naturally pull many investors right into dividend stocks. The reasons are simple. Interest rates are low, after 3 Fed cuts in 2019 brought them down to just 1.5% to 1.75%. With the Fed’s key rate pared so far back, Treasury bond yields are also low, holding between 1.5% and 2%. Among S&P listed companies, the average dividend yield of 2% still beats interest rates and bond returns. And remember: there is no ceiling on dividend yields.
We’ve used TipRanks’ Stock Screener tool to seek out small- and mid-cap stocks with high dividends – that is, with yields exceeding 6%. To narrow it further, we looked only at stocks with ‘Strong Buy’ consensus ratings. TipRanks has a database encompassing over 6,500 stocks; our search parameters narrowed that down to 30. Here is the low-down on three of those.
Hess Midstream Operations (HESM)
The energy industry, especially the crude oil and natural gas extraction activities, has given a turbo boost to the US economy in recent years. Providing jobs and energy at the wellheads, in the midstream, and at the customer’s point of purchase, energy products also provide the fuel of our daily lives.
Hess Midstream provides infrastructure system for oil companies in the Bakken Shale of North Dakota and Montana. The company owns a variety of assets, including crude oil, natural gas, and water gathering pipelines, pipeline and rail line terminal facilities, and natural gas plants.
Last month, Hess completed an organization change that marked its transition from a small-cap limited partner to a mid-cap independent midstream operator. The company conducted a merger between the midstream operator branch and the corporate partnership. In short, Hess Midstream Partners successfully acquired Hess Infrastructure Partners. The HESM ticker inherited HIP’s market history. Shares are up 15% since the December 16 announcement.
The company didn’t just… Continue reading at Yahoo! Finance