8 Stocks in the Penalty Box That Offer Big Upside and Passive Income Dividends as High as 9%

Franchise Group

This way-off-theadar idea could be a total return home run for investors. Franchise Group Inc. (NYSE: FRG) owns and operates franchised and franchisable businesses.

The Vitamin Shoppe segment operates as an omnichannel specialty retailer of vitamins, minerals, herbs, specialty supplements, sports nutrition and other health and wellness products under the BodyTech, True Athlete, The Vitamin Shoppe, ProBioCare, Fitfactor Weight Management System and Vthrive The Vitamin Shoppe brands.

The Pet Supplies Plus segment operates as an omnichannel retail chain and franchisor of pet supplies and services that includes premium brands, proprietary private labels and specialty products, as well as offers grooming, pet wash and other services.

The Badcock segment operates as a specialty retailer of furniture, appliances, bedding, electronics, home office equipment, accessories and seasonal items in a showroom format. It offers multiple and flexible payment solutions and credit options through its consumer financing services.

The American Freight segment operates a retail chain that provides in-store and online access to furniture, mattresses, new and out-of-box home appliances, and home accessories. It also serves as a liquidation channel for appliance vendors.

The Buddy’s segment operates as a specialty retailer of consumer electronic, residential furniture, appliances and household accessories through rent-to-own agreements.

The Sylvan segment establishes and grows as a franchisor of supplemental education for Pre-K-12 students and families in the United States and Canada.

Investors receive a 7.50% dividend. The $45 Oppenheimer target price is less than the $48.00 consensus figure. Thursday’s final Franchise Group stock trade came in at $33.08.

Gilead Sciences

This stock is trading at a very reasonable 9.05 times estimated 2022 earnings and has big-time upside potential. Gilead Sciences Inc. (NASDAQ: GILD) is a research-based biopharmaceutical company that discovers, develops and commercializes medicines in the areas of unmet medical need in the United States, Europe and elsewhere.

The company provides Biktarvy, Genvoya, Descovy, Odefsey, Truvada, Complera/Eviplera, Stribild and Atripla products for the treatment of human immunodeficiency virus (HIV) infection; Veklury, an injection for intravenous use, for the treatment of coronavirus disease 2019; and Epclusa, Harvoni, Vosevi, Vemlidy and Viread for the treatment of liver diseases. It also offers Yescarta, Tecartus, Trodelvy and Zydelig products for the treatment of hematology, oncology and cell therapy patients.

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