Even though the Federal Reserve has raised interest rates from 0% to 4.35% over the past year, longer rates on the 10-year and 30-year benchmark notes and bonds have collapsed. In fact, due to the huge drop in rates, potential homebuyers have seen the biggest decline in mortgage rates in 14 years as the 30-year U.S. mortgage rate has moved from 7.08% to 6.15% in the past 10 weeks. That is the biggest 10-week drop in rates (almost 1%) since January 2009.
While great for potential home buyers, or those looking to refinance, it is not so great for those looking for dependable dividends. The thought of buying a 30-year bond with a puny 3.62% yield does not make sense for growth and income investors looking for yield.
We screened our 24/7 Wall St. research database for well-known stocks that have been hammered for one reason or another, looking for solid ideas for investors. We found seven well-known companies that look ripe for the picking and all their stocks are rated Buy on Wall Street. It is important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.
Blackstone
Shares of this top money management company make sense for more aggressive growth and income investors. Blackstone Group L.P. (NYSE: BX) is one of the largest global alternative asset managers. Blackstone manages investments and provides services across four operating segments: Private Equity, Real Estate, Credit and Hedge Fund Solutions.
Blackstone launches and manages private equity funds, real estate funds, funds of hedge funds and credit-focused funds for its clients. It invests in private equity, public equity, fixed-income and alternative investment markets.
Jefferies noted this about the company: “Blackstone Group has been steadily building out longer-duration permanent capital vehicles, to add earnings stability and higher multiple fee-paying assets under management.”
Blackstone stock investors receive a 5.81% distribution. Piper Sandler’s $111 price target is well above the consensus target of $99.53 and Friday’s closing price of $85.02, which was up close to 6% on the day.
Energy Transfer
The top master limited partnership is a very safe way for investors looking for energy exposure and income. Energy Transfer L.P. (NYSE: ET) owns and operates approximately 11,600 miles of natural gas transportation pipeline, as well as natural gas storage facilities in Texas and Oklahoma, and it has 19,830 miles of interstate natural gas pipeline. It also sells natural gas to electric utilities, independent power plants, local distribution and other marketing companies and industrial end-users.
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Investing in real estate can diversify your portfolio. But expanding your horizons may add additional costs. If you’re an investor looking to minimize expenses, consider checking out online brokerages. They often offer low investment fees, helping you maximize your profit.
