Havoc in the Crypto Market as Bitcoin Drops to its Lowest Levels Since February

Havoc in the Crypto Market as Bitcoin Drops to its Lowest Levels Since February

TipRanks

Dividend stocks are always popular. They offer investors a clear path to returns, with regular cash payments and a yield – a return on the original investment – that usually far exceeds bond yields. But not all dividend stocks are created equal, and some offer better opportunities than others. Dividend yield is a key metric. Among S&P listed companies the average yield is only 2%. However, the highest yields aren’t always the way to go. Investors should also consider share appreciation or upside potential – these factors aren’t always connected to dividends, but they will affect the general returns available from a given stock. To that end, we’ve used the TipRanks database to pull up two high-yield dividend stocks that share a profile: a Buy-rating from the Street’s analyst corps; considerable upside potential; and a dividend yielding over 8%. Let’s take a closer look. New York Mortgage Trust (NYMT) We’ll start with a real estate investment trust (REIT), a logical place to turn for high dividend returns. REITs typically pay out higher than average dividends, as a way of complying with profit-return regulations in the tax code. New York Mortgage Trust, which holds a portfolio of adjustable-rate residential mortgage loans, commercial mortgages, and non-agency mortgage-backed securities, is typical of its niche, both in the quality of its portfolio and its high yield dividend. In its recent 1Q21 financial release, NYMT listed several metrics of interest to investors. The company sold off non-agency RMBS and CMBS totaling $111.6 million, purchased $347.3 million in residential loans, and finished the quarter with $4.72 billion in total assets. The company saw net investment income of $30.3 million, and was able to fund its dividend payment, to the tune of 10 cents per common share. At that payment rate, the dividend yields 8.91%. This was the second dividend declaration in a row at 10 cents; the company has been gradually increasing the payment since cutting it back last summer during the worst of the corona crisis. B. Riley analyst Matt Howlett was impressed by NYMT’s management of the recent economic crisis, and that factor takes a lead role in his recent initiation report. “Over the last decade, NYMT has delivered among the highest economic return within the space due in part to strong asset selection, low leverage, and a highly efficient operating structure. While the March 2020 liquidity crisis was a setback for the industry, NYMT managed the crisis admirably, in our view, and avoided any major wear and tear on the company. In fact, we argue that as NYMT has rebuilt, its originations have become more direct (acquiring loans vs. securities), and its cost of capital has been declining,” Howlett opined. In line with these comments, Howlett rates the stock a Buy, and his $6 price target implies a one-year upside potential of 36%. Based on the current dividend yield and the expected price appreciation, the stock has ~45% potential total return profile. (To watch Howlett’s track record, click here) Overall, there are four recent reviews on record for NYMT, and they break down to 2 Buys, 1 Hold, and 1 Sell for a Moderate Buy consensus rating. The shares are selling for $4.45, and the average price target of $5.17 suggests room for ~17% upside from that level. (See NYMT stock analysis on TipRanks) Global Net Lease (GNL) Next up, Global Net Lease, is another REIT. The portfolio here is built on commercial real estate properties. A review of the company’s portfolio shows 306 such properties, totaling 37.2 million square feet of leasable space, let to 130 tenants. GNL operates in 10 countries, and boasts that 99.7% of its total square footage has been leased. The average lease has 8.3 years remaining – an important factor, as the long term provides stability to the portfolio. In the first quarter of 2021, GNL showed a top line of $89.4 million, up 12.8% from the year-ago quarter. The company ran a net loss, but at $800,000 that loss was significantly smaller than the $5 million lost in 1Q20. Net operating income was up from $71.9 million one year ago to $81.8 million in 1Q21. GNL reported sound liquidity in the quarter, with $262.9 million in cash or cash equivalents and an additional $88.6 million available in credit. And most importantly, GNL reported collecting 100% of rents due in Q1. GNL declared a 40 cent dividend for common shareholders during the quarter, and through it distributed a total of $36.2 million. At that rate, the dividend annualizes to $1.60 and gives a high yield of 8.59%. The dividend was cut last year during the corona crisis, but has been kept stable for five quarters since then. All of this adds up to a company that is sound on fundamentals of its business, and that has attracted notice from analyst Bryan Maher. In his note for B. Riley, Maher writes, “GNL’s strong portfolio metrics provide for an attractive setup for the balance of 2021…. Given that GNL, in our view, is not over-levered and can borrow at exceedingly low rates, combined with prudent use of its in-place ATM, we are not concerned about the REIT’s ability to finance acquisitions to hit our $300.0M target for 2021.” The analyst summed up, “Given GNL’s well-crafted industrial/ office net lease portfolio and strong operating metrics, we reiterate our Buy rating on the shares.” The Buy rating comes with a $23 price target attached. At current share price, that implies an upside of ~25% for the next 12 months. (To watch Maher’s track record, click here) Some stocks fly under the radar, and GNL is one of those. Maher’s is the only recent analyst review of this company. (See GNL stock analysis on TipRanks) To find good ideas for dividend stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights. Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.

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Bitcoin Price Prediction: Will the Crypto Market Rebound?

Crypto Bitcoin Price Prediction: Will the Crypto Market Rebound?

For quite some time, almost every Bitcoin price prediction has had the popular cryptocurrency on an upward trajectory. However, the recent all-time highs were quickly met with a major sell-off and market crash.

Crypto analysts are now predicting a bearish trend going forward. And as you may have expected, Elon Musk is the key player in all of this movement. Let’s take a closer look at the BTC price and what you can expect in the future.

Bitcoin Price Prediction in 2021

Bitcoin’s value went through the roof to begin 2021. In fact, it hit an all-time high of $64,829.14 in April. Cryptocurrencies, in general, have thrived during the COVID-19 pandemic. This includes the push for Dogecoin, Ethereum and many others.

Bitcoin, on the other hand, has led the charge as crypto’s poster child. Most experts made it very clear that Bitcoin was a real investment opportunity to consider. And investors began to listen. Cryptocurrencies have made one headline after another due to the massive increase in interest.

Yet, making a Bitcoin price prediction has always been difficult. And the recent crash tells you everything you need to know. Cryptocurrencies come with extreme vulnerability, uncertainty and volatility risks.

This is where Elon Musk comes into play. The billionaire Tesla founder has been a major supporter of cryptocurrency. However, his stance has slightly changed due to environmental concerns over the increasing use of fossil fuels for Bitcoin mining.

As a result, Musk announced that Tesla would no longer accept Bitcoin as a payment option. A sell-off followed that led to Bitcoin’s price drop.

The popular crypto fell as low as $42,141 for a near 30% drop from recent highs. And this is why analysts are struggling to determine a Bitcoin price prediction.

Since the crash, Bitcoin has slightly rebounded above $44,000. Moreover, it’s important to consider that Bitcoin is still up since the beginning of the year. The price of BTC ended 2020 at $29,111.52.

Is Bitcoin a Worthy Investment?

Bitcoin is the gold standard for cryptocurrencies. That isn’t changing anytime soon. But is it a worthy investment?

Depending on your specific circumstances, you may want to consider adding Bitcoin to your portfolio. However, you have to be cautious. The uncertainty behind cryptocurrencies is growing as the U.S. economy recovers.

The market is shifting and the risks of digital currencies are coming to light. This may lead to tighter regulations in the future.

Therefore, take every Bitcoin price prediction with a grain of salt. The volatility makes it nearly impossible to make a proper projection. As you can see, one tweet by Elon Musk can lead to an immediate downfall and more uncertainty.

How to Invest in Bitcoin

You have plenty of options if you are ready to invest in Bitcoin. For example, the most popular cryptocurrency exchanges include:

Bittrex

Changelly

Coinbase

Kraken

Robinhood

Of the list above, Coinbase (Nasdaq: COIN) and Robinhood stand out. But you must do your research and consider the current Bitcoin price prediction before investing your hard-earned money. Robinhood provides commission-free trading as the most popular mobile application for investors. Coinbase gives its users the ability to invest in and earn Bitcoin as they learn more about cryptocurrencies.

To protect your crypto investments, it’s always important to consider the security measures each of these platforms has in place.

Investing in Cryptocurrencies

The crypto market has taken an unexpected hit over the past few weeks. And this has led investors to reconsider their stance on Bitcoin. Elon Musk isn’t accepting Bitcoin any longer. But he’s still riding high on Dogecoin.

For the latest crypto trends and updates, sign up for the Manward Financial Digest e-letter below. Expert Andy Snyder is on a cryptocurrency journey of his own and he’s providing updates and analysis on a daily basis.

Keep a close watch on Bitcoin’s movement over the coming months. The current Bitcoin price prediction is showing a bearish trend, but only time will tell if this popular cryptocurrency can make a complete recovery.