An update of Aegon’s sale of its Central and Jap European business to VIG


2 Persuasive Dividend Stocks Yielding at Minimum 8{f13b67734a7459ff15bce07f17c500e58f5449212eae0f7769c5b6fbcf4cc0c4} Oppenheimer Says ‘Buy’

The crises of the earlier yr – the COVID pandemic, the social lockdowns, the financial shock – are on the wane, and which is very good. Nevertheless, the crisis put up-mortems are rolling in. It’s only pure to examine the latest economic disaster to the ‘Great Recession’ of 12 many years in the past, but as Oppenheimer’s chief financial commitment strategist John Stoltzfus details out, “Considering the distinctions in what induced the Good Money Crisis of a small a lot more than 12 several years ago… and the existing crisis… it’s tiny marvel that as superior as issues are when when compared to this time last yr there remains substantially to be uncovered as to how the exit and the legacy of the pandemic disaster will just take shape…” Stoltzfus also believes that the financial details, when struggling some setbacks, is generally resilient. Marketplaces are soaring, and that, as Stoltzfus claims, “…in our view very likely provides more option than possibility for traders who have suitable tolerance for chance and who apply endurance.” Getting Stoltzfus’ outlook into consideration, we preferred to consider a nearer seem at two shares earning a round of applause from Oppenheimer’s stock analysts. Using TipRanks’ databases, we learned that both equally share a profile: a Robust Purchase consensus rating from the Street’s analyst corps and a dependable dividend yielding at minimum 8{f13b67734a7459ff15bce07f17c500e58f5449212eae0f7769c5b6fbcf4cc0c4}. Let us see what Oppenheimer has to say about them. Owl Rock Funds (ORCC) We’ll start out with Owl Rock Funds, a person of the money industry’s myriad specialty finance corporations. These businesses typically inhabit the center-marketplace finance sector, wherever they make accessible funds for acquisitions, recapitalizations, and basic functions to mid-industry businesses that really do not always have access to other sources of credit. Owl Rock’s portfolio is made up of investments in 119 businesses, totaling $11.3 billion. Of these investments, 96{f13b67734a7459ff15bce07f17c500e58f5449212eae0f7769c5b6fbcf4cc0c4} are senior secured loans. Owl Rock documented its 4Q20, and total year final results, at the conclude of February. The organization noticed Q4 web earnings of $180.7 million, which came out to 46 cents for each share. This was up from 36 cents per share in 4Q19, a 27{f13b67734a7459ff15bce07f17c500e58f5449212eae0f7769c5b6fbcf4cc0c4} boost. Also up was investment decision cash flow, which at $221.3 million for the quarter was up 9{f13b67734a7459ff15bce07f17c500e58f5449212eae0f7769c5b6fbcf4cc0c4} 12 months-in excess of-12 months. Whole-calendar year expense revenue was $803.3 million, up a lot more than 11{f13b67734a7459ff15bce07f17c500e58f5449212eae0f7769c5b6fbcf4cc0c4} from 2019. In addition, the enterprise finished 2019 with in excess of $27 billion in assets less than management. Of specific fascination to dividend traders, Owl Rock’s board declared a 31-cent for each widespread share dividend for the first quarter. This is payable in mid-May well, and matches the company’s earlier normal dividend payments. The annualized price of $1.24 provides a generate of 9{f13b67734a7459ff15bce07f17c500e58f5449212eae0f7769c5b6fbcf4cc0c4}. Also of fascination about Owl Rock’s dividend, the company compensated out the sixth and last special dividend – associated to the 2019 IPO start – in this past December. In 2019, ORCC compensated out for 80 cent particular dividends, along with the regular dividend payments. The firm has kept its dividend reliable, conference both the standard and specific payments, considering the fact that likely public in the summer months of 2019. Owl Rock caught the focus of Oppenheimer’s Mitchel Penn, who sees the organization as a stable investment decision with likely to conquer the estimates. “We estimate EPS of $1.22 and $1.34 in 2021 and 2022 for an ROE of 8{f13b67734a7459ff15bce07f17c500e58f5449212eae0f7769c5b6fbcf4cc0c4} and 9{f13b67734a7459ff15bce07f17c500e58f5449212eae0f7769c5b6fbcf4cc0c4}, respectively. We project that Owl Rock can generate a 8.5{f13b67734a7459ff15bce07f17c500e58f5449212eae0f7769c5b6fbcf4cc0c4} ROE, and provided an approximated expense of fairness cash of 8.5{f13b67734a7459ff15bce07f17c500e58f5449212eae0f7769c5b6fbcf4cc0c4} we calculate a honest worth of $15/share or 1.02x book worth,” Penn mentioned. “To reach an 8.5{f13b67734a7459ff15bce07f17c500e58f5449212eae0f7769c5b6fbcf4cc0c4} ROE, ORCC will possibly want to increase its portfolio yield from 8.4{f13b67734a7459ff15bce07f17c500e58f5449212eae0f7769c5b6fbcf4cc0c4} to 9.{f13b67734a7459ff15bce07f17c500e58f5449212eae0f7769c5b6fbcf4cc0c4} or improve its leverage from 1x to 1.2x. It’s also possible that it does a small of equally. Our design accounts for the price cost increase from a flat 75 bps to a base price of 1.5{f13b67734a7459ff15bce07f17c500e58f5449212eae0f7769c5b6fbcf4cc0c4} on assets and an incentive rate of 17.5{f13b67734a7459ff15bce07f17c500e58f5449212eae0f7769c5b6fbcf4cc0c4} on earnings.” Penn premiums this inventory an Outperform (i.e., a Acquire), and his $15 price concentrate on advise a 7{f13b67734a7459ff15bce07f17c500e58f5449212eae0f7769c5b6fbcf4cc0c4} upside likely from latest stages. The dividend generate, having said that, is the true attraction here (To observe Penn’s monitor history, click on here.) ORCC shares have attracted 3 modern reviews, and all are to Get – which would make the Solid Buy consensus ranking unanimous. This inventory is promoting for $13.98 per share and has an typical price concentrate on of $14.71. (See ORCC inventory analysis on TipRanks) Fidus Investment decision Company (FDUS) Sticking with the mid-marketplace finance sector, we’ll take a look at Fidus Expense. This business, like Owl Rock, provides money obtain to lesser firms, including entry to personal debt alternatives. Fidus has a portfolio that is based mostly mostly on senior secured debt, together with mezzanine credit card debt. The enterprise that Fidus has invested in are valued involving $10 million and $150 million. In the fourth quarter, rounding out 2020, Fidus invested in 7 businesses new to its portfolio, putting a overall of $103.9 million into the investments. The company’s portfolio, for that quarter, brought in an adjusted internet investment revenue of $10.7 million, or 25 cents per frequent share. This was up 3 cents, or 13{f13b67734a7459ff15bce07f17c500e58f5449212eae0f7769c5b6fbcf4cc0c4}, year-about-calendar year. For the comprehensive calendar year 2020, the altered web income reached $38 million, up from $35.3 million in 2019. For each share, 2020’s $1.55 was up 7.6{f13b67734a7459ff15bce07f17c500e58f5449212eae0f7769c5b6fbcf4cc0c4} yoy. Fidus’ shares have been climbing steadily in the past year. Due to the fact last April, the inventory has received an extraordinary 153{f13b67734a7459ff15bce07f17c500e58f5449212eae0f7769c5b6fbcf4cc0c4}. This presents FDUS a sound share appreciation, to complement the dividend returns. Individuals dividends are significant. The business declared its 1Q21 payment in February, and paid out on March 26. The normal payment, at 31 cents for each typical share, yields 8{f13b67734a7459ff15bce07f17c500e58f5449212eae0f7769c5b6fbcf4cc0c4} with an annualized payout of $1.24. In addition to this normal payment, Fidus also declared a specific dividend of 7 cents for every share, nearly double the 4-cent exclusive payment built in the previous quarter. Turning now to the Oppenheimer coverage on Fidus, we obtain that 5-star analyst Chris Kotowski is delighted with this corporation, ample to price it an Outperform (i.e. Acquire) with an $18 price focus on. This figure implies a 15{f13b67734a7459ff15bce07f17c500e58f5449212eae0f7769c5b6fbcf4cc0c4} a single-year upside. (To observe Kotowski’s track record, click on listed here) “The fundamentals [are] steady with debt investments at yr-finish basically stable and fascination money in line with both equally the prior quarter and our estimate…. What we are most delighted about is that we ended the year with only one little non-accrual. There was a considerable loss all through the calendar year on a person credit history, which was crystallized in 4Q20, but there had been also fairness gains in 1Q20 that offset that, and in our head, the reality that we close a 12 months like this with nominal web losses validates FDUS’s small business design.” Of Fidus’ dividend policy, maintaining a foundation payment with particular dividends included on when attainable, Kotowski writes basically, “We believe a variable dividend helps make a planet of feeling.” Like ORCC higher than, this is a stock with a unanimous Strong Buy consensus score centered on 3 new positive testimonials. Fidus’ shares are marketing for $15.70 and their $17.17 ordinary rate focus on implies a 9{f13b67734a7459ff15bce07f17c500e58f5449212eae0f7769c5b6fbcf4cc0c4} upside potential from that degree. (See FDUS inventory examination on TipRanks) To come across fantastic concepts for dividend stocks investing at appealing valuations, go to TipRanks’ Very best Shares to Purchase, a newly released tool that unites all of TipRanks’ fairness insights. Disclaimer: The opinions expressed in this write-up are exclusively all those of the featured analysts. The written content is supposed to be made use of for informational needs only. It is very vital to do your possess examination ahead of earning any investment decision.