今年秋季最热门的高收益部门

This high-yield sector has outperformed the market over the month, quarter, year, and so far in 2019.

We detail the top outperforming stocks within this sector for valuations, price targets, dividend coverage, and financials.

The yields range from 5% to 8%.

Looking for what's hot vs. what's not in the high-yield space? Take a gander at the performance of the four high-yield sectors. Although Utilities have a slightly higher overall yield of 2.89%, it's the Real Estate sector which has outperformed both the market and the other high-yield sectors over the past month, quarter, year, and so far in 2019.

If Gomer Pyle was here, he might just drawl his famous line, "Surprise, surprise, surprise!." There has been no shortage of media coverage on the Real Estate sector here on SA and in the financial press in 2019.

Top 10 Performance:

We drilled down to see how the top 10 high-yield companies within this sector have performed vs. the real estate and financial sectors and vs. the market. Excepting over the past year, the top 10's average price performance has bested both sectors and the market in all of these time periods. Although the top 10 trailed the overall sector over the past year, they still gained an average of 20.55%, vs. 25.17% for the real estate sector, and just 6.73% for the S&P 500.

These are the companies which comprise this Top 10. It's a mixed group of small and mid-cap firms, mostly REIT's of many flavors, involved in Healthcare, Retail, Residential, and Diversified real estate holdings:

Retail Properties of America (RPAI) is the top performer over the past month, gaining 8.2%. It's closely followed by BRT Apartments (BRT), with an 8.14% gain. In contrast to the S&P 500, which has lost -.60% over the past month, all of these stocks have had solid gains, ranging from 4.27% to 8.20%.

BRT, Medical Properties Trust (NYSE:MPW) and Omega Healthcare (OHI) have had the best one-year returns, at 39%, 37%, and 33%, respectively. On the other end of that metric are American Finance Trust (AFIN), Sabra Health Care (SBRA), and Kite Realty Group (KRG), with the lowest one-year returns.

AFIN's and KRG's lower performance over the past year isn't surprising as they are involved in retail properties, which have been under pressure due to the continuing growth of online shopping. RPAI also is a retail REIT, but its management has moved toward redeveloping its portfolio into mixed use properties - a combo of entertainment, restaurants, fitness, etc., vs. just traditional stores.

Dividends:

The yields run from 5.10% for RPAI, up to 8.18% for Landmark Infrastructure Properties (LMRK). We used trailing Funds From Operations, FFO, as the distribution sustainability metric - the FFO dividend payout ratios run from the low 60% region, up to 295% for LMRK. However, you'd be best to investigate Adjusted Funds From Operations, AFFO, which also takes into account non-recurring quarterly charges/writeoffs.

Not many of these firms have a long dividend growth record. OHI has the top spot, at 7.26%, followed by SBRA, at 5.77%, and KRG, at 5.76%:

Valuations:

Not surprisingly, the three retail

REITs

, KRG, BRX, and RPAI, have the lowest Price/FFO valuations. LMRK and BRT have the highest valuations, at 24.04 and 20.82, respectively. The only stock with a sub-1X price/book is AFIN, while KRG is the next cheapest, at 1.03X.

Analysts' Price Targets:

With all of the outperformance, it's also not surprising that only three of these stocks has upside variance vs. its average price target from analysts. At $13.04, RPAI is 8.82% below its average $14.19 price target, followed by MPW and SNR. At the other end of the spectrum, SBRA is ~12% above its average price target.

Financials:

This table is ranked by return on equity and shows LMRK leading the pack, at 26.1%, followed by MPW, at 20.5%. There's quite a drop after that, down to 12.6% for BRX, with only OHI, RPAI and SBRA also showing positive ROE ratios.

SBRA, RPAI, LMRK, MPW, and AFIN all show sub-1X Debt/Equity ratios, with New Senior Investment Group (SNR), having the highest leverage, at 8X, followed by BRT, at 4.88%.

All tables furnished by DoubleDividendStocks.com, unless otherwise noted.

Disclaimer: This article was written for informational purposes only, and is not intended as personal investment advice. Please practice due diligence before investing in any investment vehicle mentioned in this article.

I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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