Core Insights - Agree Realty (NYSE: ADC) is gaining relevance in the industry due to its consistent delivery of strong results and dividends [1] Group 1: Company Performance - ADC has successfully attracted investors by providing reliable financial performance, including dividends [1] - The company is positioned as a solid option for dividend investing, which is viewed as an accessible path to financial freedom [1] Group 2: Analyst Background - The analyst has extensive experience in M&A and business valuation, having evaluated numerous businesses and participated in various transactions [1] - The focus of the analyst's work spans multiple sectors, including tech, real estate, software, finance, and consumer staples, which are also reflected in their investment portfolio [1]

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Core Viewpoint - Small-cap stocks are currently undervalued, presenting potential investment opportunities, especially those offering high dividend yields ranging from 8.3% to 17.1% [2] Group 1: Small-Cap Stocks Overview - The valuation gap between the S&P 500 and S&P 600 is at its widest since the late 1990s, suggesting small-cap stocks are significantly cheaper [2] - The article discusses five small-cap stocks with attractive dividend yields, indicating a potential for high returns despite their current low valuations [2] Group 2: Playtika Holding (PLTK) - Playtika, a mobile game developer, has a dividend yield exceeding 8% but has not raised its payout recently, indicating a decline in earnings and sales [4][5] - Analysts project a 32% increase in profits for 2024, despite the company's struggles in the competitive mobile gaming market [6] - Playtika's valuation is low at 6 times forward earnings, but there are concerns about its growth prospects [7] Group 3: Carlyle Secured Lending (CGBD) - CGBD is a business development company focused on U.S. middle-market companies, primarily investing in first-lien debt [8][9] - Recent earnings reports have shown disappointing results, with an increase in non-accrual loans and a stagnant base dividend of 40 cents per share [10][11] - CGBD shares are trading at a 16% discount to net asset value, but operational challenges raise concerns about future dividend sustainability [12] Group 4: Bain Capital Specialty Finance (BCSF) - BCSF provides financing solutions to a diverse range of companies, with a significant portion of its investments in first-lien debt [13][14] - The company has maintained its regular dividend but has introduced special dividends, raising concerns about future dividend coverage due to declining net investment income projections [16][17] - Analysts expect BCSF's dividend ratios to be high, leaving little room for error in case of operational difficulties [17] Group 5: Two Harbors Investment Corp. (TWO) - TWO operates in the mortgage REIT sector, focusing on mortgage servicing rights and agency residential mortgage-backed securities [19][22] - The company has faced significant share price declines, resulting in a high yield of over 17%, but recent litigation charges could impact its book value and dividend sustainability [24][25] - TWO's current dividend rate of 45 cents per share is at risk due to the potential impact of litigation on earnings available for distribution [25] Group 6: Franklin BSP Realty Trust (FBRT) - FBRT is a mortgage REIT focused on commercial mortgage-backed securities, with a significant portion of its portfolio in multifamily properties [26][27] - The company is trading at a 28% discount to book value, with a low P/E ratio based on 2026 earnings estimates, indicating potential value [28] - Concerns exist regarding the stability of its dividend, as the payout has not changed since 2021, and market conditions could necessitate a review of the dividend policy [29][30]

Core Viewpoint - UPS is currently experiencing a significant stock price decline, down 24% over the last six months, attributed to various economic challenges, but presents a potential high-yield investment opportunity due to its record-breaking dividend yield and low stock valuation [1][2][11]. Financial Performance - UPS generated $5.9 billion in net income over the last four quarters, converting 92% of profits into free cash flow, indicating strong profitability despite current challenges [5]. - The company has $5.1 billion in cash reserves and maintains a solid credit rating, ensuring the safety of its dividend payments in the near future [6]. Strategic Adjustments - UPS plans to enhance profitability by reducing low-margin shipments, particularly by halving its deliveries under the Amazon contract by summer 2026, which will also allow the closure of 73 shipping centers and a reduction of 25 million hours in annual operating time [7][8]. - The management is reassessing its relationship with Amazon to avoid diminishing returns, indicating a proactive approach to maintaining profitability [8]. Long-term Investment Case - The current stock price of UPS is considered cheap, with a price-to-earnings ratio of 14.3 and a price-to-sales ratio of 0.9, both significantly below long-term averages, suggesting a potential for recovery and growth [11]. - The dividend yield stands at 6.7%, one of the highest in the S&P 500, making it an attractive option for long-term investors looking to build wealth [11][12].

Core Viewpoint - Warren Buffett considers the acquisition of Kraft Heinz as one of his few investment mistakes, particularly criticizing the overpayment for Kraft in 2015, despite Berkshire Hathaway's continued ownership of approximately 27% of the company [1][2][4]. Company Performance - Kraft Heinz stock has lost two-thirds of its value over the past decade and is currently at five-year lows, yet it remains a significant part of Berkshire Hathaway's portfolio, constituting about 3% of its value [2]. - The company has a high dividend yield of approximately 6%, significantly above the average yield of around 2%, making it attractive for dividend-seeking investors [5][7]. Challenges Facing Kraft Heinz - Many of Kraft Heinz's well-known brands are experiencing declining sales, particularly in North America, which is a major issue for the company [8]. - Increased competition from social media influencers and cheaper unbranded products is impacting Kraft Heinz's market position, leading to a decline in organic net sales by nearly 5% year-over-year in the first quarter of 2025, with operating income falling by 8% [9][10]. Strategic Outlook - Kraft Heinz is exploring "strategic transactions," which may involve selling parts of its portfolio or acquiring other businesses, but faces challenges due to a substantial debt load of nearly $21 billion [11][12]. - The company aims to reduce operating expenses by about $1 billion by the end of 2027, which could help sustain its dividend [14]. Dividend Safety and Future Prospects - Despite current challenges, the outlook for Kraft Heinz's dividend is considered safe, with the business maintaining strong profit margins, suggesting it could be an attractive option for income-focused investors [15].

Company Overview - Guaranty Bancshares Inc. (GNTY) is headquartered in Addison and operates in the Finance sector [3] - The stock has experienced a price change of 17.43% since the beginning of the year [3] - The company currently pays a dividend of $0.25 per share, resulting in a dividend yield of 2.46%, which is higher than the Banks - Southwest industry's yield of 1.27% and the S&P 500's yield of 1.56% [3] Dividend Performance - The current annualized dividend of $1 represents a 4.2% increase from the previous year [4] - Over the past 5 years, Guaranty Bancshares has increased its dividend 5 times, achieving an average annual increase of 7.12% [4] - The company's current payout ratio is 34%, indicating that it paid out 34% of its trailing 12-month earnings per share as dividends [4] Earnings Growth - Earnings growth for GNTY appears solid, with the Zacks Consensus Estimate for 2025 projected at $3.30 per share, reflecting a year-over-year growth rate of 20.44% [5] Investment Appeal - GNTY is considered a compelling investment opportunity due to its attractive dividend and strong Zacks Rank of 1 (Strong Buy) [7] - The company is positioned as a better dividend option compared to high-growth firms or tech start-ups, which typically do not provide dividends [7]

Company Overview - First Busey (BUSE) is headquartered in Leawood and operates in the Finance sector. The stock has experienced a price change of -5.69% since the beginning of the year [3]. Dividend Information - First Busey currently pays a dividend of $0.25 per share, resulting in a dividend yield of 4.5%. This yield is significantly higher than the Banks - Midwest industry's yield of 3.17% and the S&P 500's yield of 1.56% [3]. - The company's annualized dividend of $1 has increased by 4.2% from the previous year. Over the last five years, First Busey has raised its dividend three times, averaging an annual increase of 2.21% [4]. - The current payout ratio for First Busey is 46%, indicating that it distributes 46% of its trailing 12-month earnings per share as dividends [4]. Earnings Growth - The Zacks Consensus Estimate for First Busey's earnings in 2025 is projected at $2.54 per share, reflecting a year-over-year earnings growth rate of 22.12% [5]. Investment Considerations - Dividends are favored by investors for various reasons, including improving stock investing profits and providing tax advantages. However, not all companies offer quarterly payouts [6]. - High-growth firms or tech start-ups typically do not provide dividends, while larger, established companies are often viewed as better dividend options. Income investors should be aware that high-yielding stocks may face challenges during periods of rising interest rates [7]. - First Busey is considered a compelling investment opportunity due to its strong dividend profile and current Zacks Rank of 3 (Hold) [7].

Company Overview - DTE Energy is headquartered in Detroit and operates in the Utilities sector, specifically in Electric Power [3] - The company's stock has experienced a price change of 9.9% year-to-date [3] Dividend Information - DTE Energy currently pays a dividend of $1.09 per share, resulting in a dividend yield of 3.29%, which is higher than the Utility - Electric Power industry's yield of 3.25% and the S&P 500's yield of 1.56% [3] - The annualized dividend of DTE Energy is $4.36, reflecting a 5.1% increase from the previous year [4] - Over the last 5 years, DTE Energy has increased its dividend 4 times year-over-year, with an average annual increase of 1.01% [4] - The current payout ratio for DTE Energy is 60%, indicating that the company pays out 60% of its trailing 12-month earnings per share as dividends [4] Earnings Growth - DTE Energy is expected to see earnings growth in the current fiscal year, with the Zacks Consensus Estimate for 2025 at $7.24 per share, representing a year-over-year growth rate of 6% [5] Investment Considerations - DTE Energy is considered a compelling investment opportunity due to its strong dividend profile and current Zacks Rank of 3 (Hold) [7]

Group 1 - Business Development Companies (BDCs) are essential for income-focused investors, benefiting from prolonged higher interest rates since 2022 [1] - Many BDCs have provided substantial returns to shareholders due to favorable market conditions [1] Group 2 - The article emphasizes the importance of conducting personal due diligence for investors [2] - The author aims to assist lower and middle-class workers in building high-quality, dividend-paying investment portfolios [2]