OneMain also offers credit cards and insurance products, comprising life, disability and involuntary unemployment insurance; optional non-credit insurance; guaranteed asset protection coverage as a waiver product or insurance; and membership plans. It operates through a network of approximately 1,400 branch offices in 44 states, as well as through its website.
Billionaire George Soros has a big position in the company, as he bought 275,000 shares in the fourth quarter of 2022. With very solid books and risk controls that keep net charge-offs low, the company offers big-time risk-reward for investors.
Shareholders receive an 11.26% dividend. Northland Securities has set its target price at $48, while the consensus target is $51.77. Tuesday’s closing print was $35.51.
Starwood Property Trust
Real estate legend Barry Sternlicht runs this high-yielding REIT with big-time total return potential. Starwood Property Trust Inc. (NYSE: STWD) operates in the United States, Europe and Australia through the following segments.
Its Commercial and Residential Lending segment originates, acquires, finances and manages commercial first mortgages, non-agency residential mortgages, subordinated mortgages, mezzanine loans, preferred equity, commercial mortgage-backed securities (CMBS) and residential mortgage-backed securities, as well as other real estate and real estate-related debt investments, including distressed or nonperforming loans.
The Infrastructure lending segment originates, acquires, finances and manages infrastructure debt investments. The Property segment engages primarily in acquiring and managing equity interests in stabilized commercial real estate properties, such as multifamily properties and commercial properties subject to net leases, that are held for investment.
The Investing and Servicing segment manages and works out problem assets; acquires and manages unrated, investment grade and non-investment grade rated CMBS comprising subordinated interests of securitization and resecuritization transactions; originates conduit loans for the primary purpose of selling these loans into securitization transactions; and acquires commercial real estate assets that include properties acquired from CMBS trusts.
Investors receive an 11.93% distribution. Starwood Property Trust stock has an $18.50 price target at J.P. Morgan. The consensus target is $21.79, and shares closed at $16.09 on Tuesday.
These six top companies pay large and, for the most part, very safe dividends, as all have been around for years. With the interest rate risk possibly swinging the other way next year, these could be total return home runs for patient investors. Patience can be a virtue when you are being paid these kinds of huge dividends quarterly.
Originally published at 24/7 Wall St.
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