BlackRock Loads Up on These 2 Dividend Stocks, With Yields of Up to 14%
As the current state of the U.S. economy remains uncertain amid high inflation and soaring interest rates, many investors have turned to high-yield dividend stocks to bolster their portfolios.
BlackRock (NYSE: BLK), the world’s largest asset manager, is employing a similar defensive strategy, as the investment behemoth recently loaded up on two high-yield dividend stocks, with one yielding over 14%.
As we wrap up the second-quarter 2023 earnings season, let’s have a look and see what BlackRock, the world’s largest asset manager with over USD $8.5 trillion in assets under management, thinks about the current state of the U.S. stock market. We’ll also review BlackRock’s current defensive investment strategy and highly the two high-yield dividend stocks the top asset manager loaded up on.
Although inflation continues to drop, it remains well above the Federal Reserve’s 2% inflation target, which likely means the market can expect more rate hikes in 2023.
According to BlackRock, Q2 2023 earnings results were stagnant, but thanks to a low bar, most companies were able to clear it and beat analysts’ expectations.
In a note to investors, Wei Li, Global Chief Investment Strategist at BlackRock, commented on recent Q2 earnings amid inflationary pressures and recessionary fears, writing:
“U.S. earnings are stagnating. Market expectations of a pickup in margins over the next year look rosy as worker shortages keep pressure on wages. We see inflation on a rollercoaster as the labor shock takes over from the spending mismatch. If companies attempt to safeguard margins against these wage pressures in a stagnant economy, this could contribute to inflation pressures and potentially result in even higher central bank policy rates.”
Also Read: 5 Ultra High-Yield ETFs You’ve Probably Never Heard Of, With Yields as High as 32.35%
BlackRock Buys 2 High-Yield Dividend Stocks
During times of high inflation and economic uncertainty, top investors often implement a defensive investment strategy that includes holding quality, high-yield dividend stocks in their portfolios.
It appears that BlackRock is employing that same defensive strategy, as it was reported by TipRanks that BlackRock recently loaded up on the following two high-yield dividend stocks:
1. DHT Holdings (DHT)
- DHT Holdings (NYSE: DHT)
- Share Price: $9.93
- Dividend: $0.35 (Quarterly)
- Yield: 14.1%
- P/E Ratio (TTM): 13.89
- EPS (TTM): $0.35 (Q2 2023)
- Market Cap: $1.62 Billion
- YTD Gain: +17.51%
DHT is an independent crude oil tanker company with a fleet of crude oil tankers in the VLCC segment that trade internationally. DHT operates through its integrated management companies in Monaco, Norway and Singapore. DHT is known for its renowned business approach as an experienced organization focusing on first-rate operations and customer service. DHT is also recognized for its quality ships and prudent capital structure, providing the company with staying power through the ups and downs of the business cycles. DHT uses a combination of market exposure and fixed-income contracts for its fleet and a counter-cyclical philosophy regarding its investments, capital allocation and fleet employment.
Shares of DHT Holdings last traded at $9.93 per share, closing the day up +3.22%. YTD, DHT stock is up 17.51%.
2. NewtekOne (NEWT)
- NewtekOne (NASDAQ: NEWT)
- Share Price: $17.59
- Dividend: $0.18 (Quarterly)
- Yield: 4.09%
- P/E Ratio (TTM): 16.1
- EPS (TTM): $0.26 (Q2 2023)
- Market Cap: $433.96 Million
- YTD Gain: +5.96%
NewtekOne is a financial holding company that provides a wide range of business and financial solutions via its bank and non-bank consolidated subsidiaries to the small- and medium-sized business market. Since 1999, Newtek has provided state-of-the-art, cost-efficient products and services and efficient business strategies to its small- and medium-sized business relationships across all 50 states. This helped NewtekOne to grow its sales, control its expenses and reduce the company’s risk.
Shares of NewtekOne last traded at $17.59 per share, closing the day even. YTD, NEWT stock is up 5.96%.
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