While high yield is difficult to come by these days, here are 2 quality stocks with high dividend yields, reasonable valuations and projected growth next year. Both of these stocks produced significant EPS growth last quarter and have equity summary scores indicating a Bullish outlook.
PennyMac Mortgage Investment Trust (NYSE: PMT) invests primarily in residential mortgage loans and mortgage-related assets. PennyMac trades at a PE of 8 with a beta of 0.83.
PennyMac increased EPS by 33% last quarter compared to the same quarter a year ago. The Company is projecting an increase in EPS of 7% next year.
PennyMac has a current dividend yield of 9.43% which has been increased 10% in the last year.
PennyMac is up 40% year to date and 9.3% in the last 4 weeks. Shares pulled back in August after pricing an upsized underwritten public offering of 15 million shares at $20.93 each. The deal originally intended to sell 12 million shares. Underwriters received a 30-day option to purchase up to 2.25 million additional shares from the company.
PennyMac plans to spend the net proceeds to purchase residential whole mortgage loan portfolios as well as funding continued growth of its correspondent lending business and acquiring additional mortgage loans or other investments, including existing forward purchase agreements.
PennyMac has an equity summary score of 9.1 out of 10 for a VERY Bullish outlook. PennyMac has a 12-month price target of $25.30.
Vanguard Natural Resources (NYSE: VNR) engages in the acquisition and development of oil and natural gas properties in the United States.
Vanguard increased EPS by 88% last quarter compared to the same quarter a year ago. The Company is projecting an increase in EPS of 39% next year. Vanguard has a PEG ratio of 0.41. Vanguard trades at a PE of 7.2 with a beta of 1.02.
Vanguard dividends are paid on a monthly basis. Vanguard has a current dividend yield of 8.31% which has been increased 4.35% in the last year.
Vanguard just announced the closing of its previously announced public offering of 6,900,000 common units representing limited liability company interests in the Company at a price of$27.51 per unit. The 6,900,000 common units include 900,000 common units purchased pursuant to the underwriters’ full exercise of their option to purchase additional common units.
Vanguard intends to use the net proceeds from the offering of approximately $182.3 million, after deducting underwriting discounts and estimated offering expenses, to repay a portion of its indebtedness outstanding under its senior secured revolving credit facility.
Vanguard has an equity summary score of 7.4 out of 10 for a Bullish outlook. Vanguard has a 12-month price target of $31.50.