Harry Domash is a long-standing expert on income investing; in his latest Dividend Detective, he hig...
Dividend Detective Uncovers Favorite High Yielders
11/15/2019 5:00 am EST
In our model portfolios, we’re adding two speculative stocks for income investors; one is a casino real estate investment trust and the other is an energy sector play, explains Harry Domash, editor of Dividend Detective.
First, we’re adding a new pick to our property REITs portfolio; it is paying 4.8% and it is in fast growth mode. How fast? Over the next 12 months, analysts expect 14% revenue growth, 7% EPS growth, and 12% dividend growth.
This new recommendation is VICI Properties (VICI), an October 2017 spin-off from Caesars Entertainment. The REIT owns 22 gaming and hospitality properties as well as four championship golf courses.
VICI Properties, growing mainly by acquisition, recently announced two significant new deals and more are on the way. Analysts are forecasting 14% revenue growth, 7% EPS growth, and 12% dividend growth over the next 12-months. The dividend yield is 4.8%.
While on the topic of fast growth, our new pick in our energy portfolio is Brigham Minerals (MNRL) an April 2019 IPO. The company reported 45% June quarter year-over-year revenue growth and analysts look for revenues to soar another 28% over the next 12 months.
Brigham was founded in 2012 to acquire mineral and royalty interests in oil and gas shale properties that Brigham would lease to third-party operators. The advantage of that approach is that Brigham doesn’t have to spend cash developing wells.
To date, Brigham has acquired interests in more than 74,000 acres in major U.S. oil and gas producing areas including the Permian and Anadarko basins in Texas, Oklahoma, and New Mexico. Brigham is in fast-growth mode.
June quarter revenues were up 45% vs. year-ago and analysts are forecasting 28% revenue growth over the next 12-months. Brigham, paying a 6.8% dividend yield, is a corporation, not a partnership, so it issues 1099 tax forms, not K-1s.
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