NEW YORK (TheStreet) -- The following companies from such sectors as pharma, insurance, lease and finance have high-yield dividend payouts of 1% to 4% and potential upside of 8% to 31% over the next 12 months. These companies are avoiding a November freeze by increasing the cash dividend paid to their shareholders. On average, these stocks have 68% buy rating and 30% hold rating.
Despite global economic uncertainty, a few of these companies are able to maintain their robust business models and have raised their dividend payout for the upcoming quarter. Investors can cash in on this combination of high dividends and estimated potential upside from current value.
The stocks are arranged in ascending order of dividend yield.
8. DDR (DDR) is a self-administered and self-managed real estate investment trust (REIT). The company engages in owning, managing and developing a portfolio of shopping centers and, to a lesser extent, office properties. Broadly, it operates in three segments: shopping centers, Brazil equity investment, and other investments. DDR owns and manages 546 shopping centers in 41 states.
Mid-November, DDR upped its quarterly dividend by 33% from the third quarter of 2011 to a new rate of 8 cents per share for the fourth quarter of 2011.The increased dividend is payable Jan. 6, 2012 to shareholders of record Dec. 16. Currently, DDR has a dividend yield of 1.4% and the new payout features a yield of 2.6%.For the third quarter ended Sept. 30, the company registered 1.8% increase in total revenue to $196.5 million. The REIT said funds from operations amounted to $67.4 million, or 24 cents per diluted share, excluding certain adjustments. For the quarter, DDR executed 516 new leases and renewals for over 2.5 million square feet. In addition, same-store net operating income growth stood at 3.7%, vs. 2% in the prior year third quarter. For full year 2011, the company estimates its funds from operations in the 95 cents to $1 per diluted share range. Also, at a recent Annual Convention For All Things REIT, the company's chief executive said that an active 2011 with several acquisitions, it plans to continue the momentum in 2012. The company has no major consolidation plans, but will partner premier retailers to fill its properties. Of the 16 analysts covering the stock, 44% recommend a buy and 50% suggest a hold. Analysts polled by Bloomberg foresee the stock gaining an average 28.3% to $14.45 in the upcoming 12 months.
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