For several weeks, stock market volatility has been driven by uncertainties surrounding the U.S. economic outlook. With a potential trade war and rising inflation threatening both consumers and businesses, investors are preparing for a possible market correction. In response, many are turning to dividend stocks as a defensive strategy within diversified portfolios. These stocks not only provide a protective cushion but also offer a reliable income stream.
Two standout dividend stocks recently highlighted by analysts include Ellington Financial (EFC) and Global Medical REIT (GMRE). Ellington Financial, a real estate investment trust (REIT), focuses on mortgage loans and securities in both residential and commercial markets. As of December 31, Ellington manages approximately $13.7 billion in assets. The company’s experienced management team, averaging 30 years in the industry, supports its reputation as a solid dividend payer. Ellington distributes dividends monthly rather than quarterly, offering an appealing income stream. With a recent dividend payment of 13 cents per share, the annualized yield reaches nearly 12%.
Ellington’s financial performance supports its dividend payouts. Despite missing revenue forecasts in the fourth quarter, the company’s bottom line exceeded expectations, fully covering the dividend. Analyst Michael Diana from Maxim highlights EFC’s potential for returns, projecting a dividend yield of 11.5% and stock price appreciation of 13% over the next four quarters.
Global Medical REIT specializes in healthcare properties, owning 190 buildings across the U.S. with a leased occupancy rate of 96.4%. The company’s strong portfolio generated a 6.7% revenue increase in the fourth quarter, with adjusted funds from operations exceeding forecasts. This performance fully covers the 21-cent common share dividend, offering a forward yield of 9.7%. Compass Point analyst Merrill Ross anticipates a return to acquisition activities, which could enhance AFFO and make the stock more attractive.
— news from TipRanks