Two High Quality 8-9% Yielding Stocks Worth Considering

Black Stone Minerals (BSM) - For the March quarter, BSM reported EBITDA of $104 million, exceeding Street estimates of $93 million, with Distributable Cash Flow (DCF) of $0.46 per share, down from $0.59 in Q4 2023 [3] - The company cut its distribution by 22% due to lower natural gas prices and expiring gas hedges, but coverage is now at 1.22x with a 9% yield [4][5] - Production volumes fell 2% year-over-year, and realized prices decreased by 12%, indicating earnings may be at a trough [6] - DCF per share is projected to fall to $1.63 in 2024 from over $2.14 in 2023, with a run rate of $1.84 appearing strong [4][7] - The stock is viewed as a good inflation hedge, with potential annual returns of ~9% even if the company does not grow [7] Healthcare Realty (HR) - For the March quarter, HR beat AFFO per share estimates by $0.01 at $0.39, with guidance for Q2 reaffirmed at 38-39 cents and $1.54 for 2024 [9][10] - HR announced a joint venture with KKR, selling an 80% stake in 12 assets for approximately $300 million, with a cap rate of 6.6% [11][13] - The company plans to use excess capital from asset sales to repurchase shares, with a buyback plan of $500 million, representing 8% of shares outstanding [18] - Occupancy rates improved, with same-store occupancy increasing by 50 basis points in Q1, and the company aims for NOI growth of 4.4-5.5% in 2024 [16] - Current stock valuation suggests a price range of $12-20, with management's recent actions indicating potential upside [19][20]