6 Relatively High Yield Dividend Stocks With Recent Broker Upgrades

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 |  Includes: BMR, DLR, ECA, HT, KLAC, SNH
by: Vytautas Drumelis

I have looked for stocks with recent broker upgrades that have relatively high dividend yields (higher than 3%).

This list is a quick pick list only which requires further research into each of the stocks before making an investment decision. However, I believe it can give some food for thought if you are looking for stocks with relatively high dividend yields and recent positive fundamental changes.

1) Senior Housing Properties Trust (NYSE:SNH), a real estate investment trust (REIT), primarily invests in senior housing properties in the United States.

On July 15, 2012, Senior Housing Properties Trust was upgraded from Hold to Buy at Stifel Nicolaus.

The company has a 4.90% trailing annual dividend yield, 6.60% forward annual dividend yield, 6.80% 5-year average annual dividend yield and pays out 138.45% of its earnings as dividends. Other market ratios: P/E Ratio: 19.71, Forward P/E Ratio: 21.72, P/S Ratio: 7.68, P/B Ratio: 1.56, PEG Ratio: 3.11.

The median target price projected by analysts is $23.50.

2) Hersha Hospitality Trust (NYSE:HT), a REIT, engages in the ownership and operation of mid scale limited service hotels in the Eastern United States.

On July 10, 2012, Hersha Hospitality Trust was upgraded from Hold to Strong Buy at JMP Securities.

The company has a 4.70% trailing annual dividend yield, 4.70% forward annual dividend yield, and a 5.70% 5-year average annual dividend yield. It does not have a stable payout ratio and has been paying dividends for the last 2 quarters, but none for the end of 2011. Other market ratios: Forward P/E Ratio: 72.71, P/S Ratio: 2.94, P/B Ratio: 1.24.

The median target price projected by analysts is $6.00.

3) BioMed Realty Trust Inc. (NYSE:BMR) operates as a REIT that focuses on providing real estate to the life science industry in the United States.

On July 9, 2012, BioMed Realty Trust Inc. was upgraded from Hold to Buy at Cantor Fitzgerald.

The company has a 4.30% trailing annual dividend yield, 4.50% forward annual dividend yield, 4.20% 5-year average annual dividend yield and pays out 519.60% of its earnings as dividends. Other market ratios: P/E Ratio: 119.56, Forward P/E Ratio: 83.17, P/S Ratio: 6.46, P/B Ratio: 1.23, PEG Ratio: 19.93.

The median target price projected by analysts is $20.00.

4) Encana Corporation (NYSE:ECA) and its subsidiaries engage in the exploration for, development, production, and marketing of natural gas, oil, and natural gas liquids.

On July 16, 2012, Encana Corporation was upgraded from Strong Sell to Hold at FirstEnergy Capital Corp.

The company has a 3.90% trailing annual dividend yield, 4.10% forward annual dividend yield, 3.40% 5-year average annual dividend yield and pays out 948.39% of its earnings as dividends. Other market ratios: P/E Ratio: 339.50, Forward P/E Ratio: 52.23, P/S Ratio: 1.74, P/B Ratio: 1.77.

The median target price projected by analysts is $21.00.

5) Digital Realty Trust Inc. (NYSE:DLR), a REIT, through its controlling interest in Digital Realty Trust, L.

On July 13, 2012, Digital Realty Trust Inc. was upgraded from Hold to Strong Buy at Jefferies & Company.

The company has a 3.50% trailing annual dividend yield, 3.70% forward annual dividend yield, 3.80% 5-year average annual dividend yield and pays out 206.53% of its earnings as dividends. Other market ratios: P/E Ratio: 59.49, Forward P/E Ratio: 40.56, P/S Ratio: 8.04, P/B Ratio: 4.32, PEG Ratio: 3.20.

The median target price projected by analysts is $77.00.

6) KLA-Tencor Corporation (NASDAQ:KLAC) designs, manufactures, and markets process control and yield management solutions for the semiconductor and related nanoelectronics industries.

On July 12, 2012, KLA-Tencor Corporation was upgraded from Moderate Buy to Strong Buy at Calyon Securities.

The company has a 3.00% trailing annual dividend yield, 3.10% forward annual dividend yield, 1.90% 5-year average annual dividend yield and pays out 28.81% of its earnings as dividends. Other market ratios: P/E Ratio: 10.39, Forward P/E Ratio: 9.57, P/S Ratio: 2.43, P/B Ratio: 2.44, PEG Ratio: 1.04.

The median target price projected by analysts is $62.00.

Comparison Charts

The chart below compares the stock price changes as a percentage for the selected companies for the last one year period.

SNH ChartClick to enlarge

SNH data by YCharts

The chart below shows dividend yield history for the selected companies.

SNH Dividend Yield ChartClick to enlarge

SNH Dividend Yield data by YCharts

The chart below shows historical dividend (in $) changes as a percentage for the selected companies.

SNH Dividend ChartClick to enlarge

SNH Dividend data by YCharts

Sources: Yahoo Finance, Google Finance, Finviz, YCharts.

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