The company has a strong presence in the Oklahoma SCOOP/STACK (NGL gathering/takeaway system, G&P), the Williston Basin (G&P, NGL takeaway) and the Permian Basin (NGL gathering, NGL takeaway, natural gas takeaway), which analysts feel provides higheturn growth opportunities.
Many on Wall Street remain positive on the company’s primarily fee-based earnings, which account for 90% of total earnings.
The dividend yield here is 5.73%. The $65 Raymond James price target is less than the $67.76 consensus target, and ONEOK stock closed on Wednesday at $64.71.
Simon Property
Shares of this leading company have been pounded and are offering the best entry point since last year, and it is a strong idea for investors looking to play the commercial real estate subsector. Simon Property Group Inc. (NYSE: SPG) invests in real estate markets across the globe, engaging in investment, ownership, management and development of properties. The company primarily invests in regional malls, premium outlets, mills and community/lifestyle centers to create its portfolio.
Through its subsidiary partnership, Simon Property owns or has an interest in about 230 properties in the United States and Asia. The company also has a 28.9% interest in Klepierre, a European real estate investment trust with over 260 shopping centers in 13 countries.
Simon Property Group stock comes with a 6% distribution. Morgan Stanley team has set a $131 price target, while the consensus target is $125.63. The shares closed almost 4% lower on Thursday at $115.59.
Vale
This very solid commodity play is one of the best ideas during a recession. Vale S.A. (NYSE: VALE) produces and sells iron ore and iron ore pellets for use as raw materials in steelmaking in Brazil and internationally.
The company operates through Ferrous Minerals and Base Metals segments. The former segment produces and extracts iron ore and pellets, manganese, ferroalloys and other ferrous products, as well as providing related logistic services. The latter segment produces and extracts nickel and its by-products, such as gold, silver, cobalt, precious metals and others, as well as copper.
The company recently confirmed it has hired advisors to assess “long term value-unlocking alternatives,” after the Financial Times reported the company was looking to sell a stake in its metals business. Vale added in a securities filing, however, that no decision has been reached yet on any potential transaction. Financial Times also reported that Vale was in talks to sell a $2.5 billion minority stake in its metals business, citing people familiar with the matter.
Investors enjoy an 8.93% dividend. Vale stock has a $16 target price at BMO Capital Markets. The consensus target is $17.19, and Wednesday’s was at $15.22.
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