Companies have started reporting June quarter numbers, and even more important, forward guidance; currently, expectations for both, especially forward guidance, are low, observes Harry Domash, editor of Dividend Detective.
Thus, with the bar that low, good news driving the market higher is possible. Consequently, we’re still advising adding to positions.
Want fast growth and high dividends? Our new Business Development Corporation (BDCs) pick is expected to grow earnings 16% this year and then another 31% in 2023. It’s paying a 10.6% dividend yield.
We’re adding Runway Growth Finance (RWAY), an October 2021 IPO, to the portfolio. Instead of catering to start-ups, Runway Growth Finance provides flexible capital solutions to late and growth-stage companies seeking alternatives to raising equity.
Runway is in fast growth mode. Analysts are looking for 16% EPS growth this year and 31% in 2023. Runway is paying a 10.6% dividend yield.
Along those same lines, our new energy Industry pick reported 159% year-over-year March quarter distributable earnings growth. It’s paying monthly dividends that averaged $0.63 per share during the first six months of this year vs. year-ago $0.22. Current dividend yield is 7.9%.
We’re adding Sabine Royalty Trust (SBR) to the portfolio. Sabine holds royalty and mineral interests in oil and gas producing, as well as yet-to-be developed properties in Florida, Louisiana, Mississippi, New Mexico, Oklahoma, and Texas. Sabine is another fast grower.
It reported 159% year-over-year March quarter distributable earnings growth. During the first six months of this year, monthly dividends averaged $0.63 per share vs. year-ago $0.22. Current dividend yield is 7.9%. Although a trust, Sabine reports earnings on 1099 tax forms, the same as regular corporations.
In our high-tech, high dividends portfolio we're International Business Machines (IBM), a worldwide supplier of software products and services to the portfolio. Analysts are expecting IBM to grow earnings 25% this year and another 9% in 2023.
In Manufacturing & Services, we’re also adding a well-known company — beverage and convenience food marketer, with relatively strong earnings growth expectations. It just raised its quarterly payout by 7% and is paying a 2.8% dividend yield.
We’re adding PepsiCo (PEP), which manufactures, markets, distributes, and sells beverages and convenience foods worldwide. Analysts are looking for 6% earnings growth this year and 9% in 2023. PepsiCo pays a 2.8% dividend yield.
