The S&P 500 has gained 24% in 2023 and is up more than 12% so far this year. These are substantial numbers, and it’s tempting to think that these good times will continue.
Ed Yardeni, the market expert behind Yardeni Research, is optimistic, but he’s also both cautious and realistic. He believes markets will continue to post gains this year, albeit at a slower pace than seen recently. He sets a target of 5,400 for the S&P 500 index, which suggests a gain of just 1% from current levels.
“We are still in a bull market, but it will slow down from now on. A few days ago, I was asked why I wasn’t increasing my numbers. Now I feel comfortable that I didn’t do it,” Yardeni said. He notes that bond yields are high, which always indicates that stocks will fall and that interest rates are taking a bigger hit than expected.
In this environment, investors will turn to defensive stocks – which often means dividend stocks. These stocks, especially those of high-yielding companies, guarantee a reliable, inflation-fighting income stream. And when div payers have also outperformed the broader markets, the potential returns are sure to attract investor interest.
We used the TipRanks Platform to see the sentiment on two such stocks, those paying high-yielding dividends – up to 11%, in one case – that also boast recent outperformance and Strong Buy consensus ratings. Here are the details.
Star bulk carriers (SBLK)
We will start with the world of freight transport, more specifically bulk sea freight, with Star Bulk Carriers. This company, based in Greece, owns and operates a fleet of dry bulk carriers. These ships, ranging from modest 500 DWT (Dead Weight Tonnage) craft to colossal ocean-going giants exceeding 200,000 tonnes, form the backbone of global maritime trade, carrying a range of unpackaged bulk cargoes such as iron ore, coal, cereals and steel products. alongside materials such as phosphates and bauxite.
With a robust ‘fleet on the water’ consisting of 163 carriers, Star Bulk’s range includes a variety of sizes, from Supramax vessels of approximately 50,000 DWT to towering Newcastlemax behemoths of approximately 210,000 DWT. Among its fleet, the company’s most prevalent vessels include 49 Ultramax vessels, ranging from 60,000 to 66,000 DWT, and 41 Kamsarmax vessels, with capacities from 80,000 to 83,000 DWT.
Ocean travel takes a toll on ships, and bulk carriers around the world work hard to maintain modern fleets. Star Bulk, in addition to the vessels it has in operation, has 8 others under construction at shipyards in Japan, the Philippines and China. Three of these ships will be delivered within 2 hours 24 minutes, two in 2025 and the rest in 2026.
Star Bulk’s current fleet includes vessels acquired through its acquisition of Eagle Bulk Shipping. The acquisition, through an all-stock transaction, was completed last April. The large size of this company’s active fleet makes…
