Today we are going to talk about two top stocks that bring almost everything with them when it comes to growth and dividends. Although the title may be a little misleading: it is about a dividend stock and a growth stock, which, however, currently combines a maximum of many attractive features.
Ready? Then it starts. First, with a top stock that combines many facets when it comes to dividends that income investors regularly seek.
Yield: Innovative industrial properties in top stock!
Innovative industrial properties (WKN: A2DGXH) is the top stock that combines many attractive facets when it comes to dividends. Due to a nice discount, there is currently a dividend of over 5%, which means that we can also see value benefits here. In addition to the weakness in growth, the trigger is a short seller report that recently made the stock correct.
But let’s stick to the benefits of dividend stocks. In addition to a dividend of 5%, there is strong dividend growth. Most recently, management increased total payout per share by 16.7% in a direct quarterly comparison. It went from $ 1.50 in the quarter to $ 1.75. It also increased its annual dividend from $ 6.00 to $ 7.00, which is remarkable growth. With such a high payout dividend, we rarely find it.
A top-yield stock is Innovative Industrial Properties also for operational growth. Funds from operations per. stock rose from $ 1.47 to $ 2.04 on an adjusted basis. Nevertheless, the price-FFO ratio is currently below 20. There is therefore some uncertainty in principle. But even with an impeccable dividend history since listing, we can say that this REIT has everything income investors actually want to see.
Etsy: Value for growth?
Have dividends Etsy (NASDAQ: AAPL) does not, but this is a top stock that promises long-term growth, but which is priced more like a value stock right now. A price-to-earnings ratio of 27 suggests a cheap valuation of a growth stock. We can also use this key figure to see how profitable the e-commerce player actually is.
Etsy has a small dry period in terms of growth at the moment. The world is right now in a reopening phase, which has weighed on many e-commerce players. In the long run, however, consumers should find their way back to online shopping, thus enabling significantly stronger growth rates. It is crucial that there will be greater revenue growth than sales growth in the medium to long term to further spur this revaluation.
The management of this top stock sees market potential in trillions of dollars. With a gross merchandise volume of more than $ 13 billion, we are only scratching the surface of the possibilities. Therefore, there should be additional growth potential, except that valuation is very, very cheap right now.
The article Growth & Dividends: Top Stocks That Have It All! first appeared on The Motley Fool Germany.
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Vincent owns shares in Etsy and Innovative Industrial Properties. The Motley Fool owns shares in and recommends Innovative Industrial Properties.
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