We’ve been seeing a bullish market in recent months, and investors, as always, are looking to maximize their returns. The analysts at Raymond James are recommending dividend stocks, encouraging investors to capitalize on both share growth and reliable dividend income.
Discussing the market landscape, Raymond James’ CIO, Larry Adam, states: “The sun continues to shine on the U.S. economy. Some of the traditional metrics that we follow (e.g., ISM manufacturing, the Fed’s aggressive tightening cycle, and leading indicators) suggest that the economy should have succumbed to a recession by now. However, growth has proven more resilient than expected. Just like the GPS ‘recalculates’ when a road trip takes an unexpected detour, our growth forecasts have had to ‘recalculate’ as the economy has proven more resilient than expected. The reasons: healthy job growth, government stimulus, travel spending, fiscal support (IRA, CHIPS, Infrastructure Act) and AI investments.”
Adam’s conclusion is clear: recession is unlikely under current conditions. He summarizes, “The important point: slowing, but still positive job growth, healthy levels of business capex, and unspent fiscal stimulus should keep the economy on a path to a soft landing.”
In this environment, the dividend stocks recommended by Raymond James offer a sound opportunity, providing substantial dividend yields – some exceeding 8% – in addition to share price appreciation. Leveraging TipRanks’ data, we’ve examined two of Raymond James’ top picks in detail.
CTO Realty Growth (CTO)
The first stock we’ll look at is CTO Realty Growth, a REIT, or real estate investment trust. These companies are known for their frequent high dividend yields, a product of regulatory requirements that they return a specified portion of their profits directly to their investors; dividends are the frequent method of choice.
CTO owns and operates a portfolio of 19 high-end retail properties in some of the highest growth markets of the US. The company’s properties include primarily commercial parks and upscale shopping malls, with locations in North Carolina, Florida, Georgia, Texas, and Arizona. In addition, CTO acts as the external manager of – and maintains a ‘meaningful’ ownership interest in – another REIT, Alpine Income Property Trust.
CTO has built its investment strategy on future income potential, seeing room for growth as more important than current income generation. The company’s geographic position reflects this; the sun-belt states of Florida, Texas, and Arizona are among the highest growth regions in the US, and Georgia and North Carolina are close behind.