November has just started and we have already seen more than 15 dividend-paying stocks upgraded so far. Five of these stocks currently have a dividend yield of 4% or more. Less than 25% of all dividend stocks yield 4% or more. Good stocks with this high of a yield are hard to come by. We have listed the reason for the upgrade and the new price target when it was made available by the investment firm.
American Capital Mortgage (MTGE)
American Capital Mortgage Investment Corp was upgraded by Compass Point from Neutral to Buy on November 1st with a price target of $27. Compass Point said the upgrade was based on very strong Q3 results, Book Value and future dividend strength. MTGE has a dividend yield of 13.9%. Because it is a REIT, we are not focused on the payout ratio. The company started paying dividends in 2011 and has already increased its dividend twice.
Home Properties (HME)
Home Properties Inc was upgraded by Compass Point on November 6th from Neutral to a Buy with a price target of $72 per share. The reason for the upgrade was not available. HME has a dividend yield of 4.2%. Because it is a REIT, we are not focused on the payout ratio. The company has increased its dividend for two consecutive years but still has a negative three year dividend growth rate.
Fortress Investment Group (FIG)
Fortress Investment Group LLC was upgraded by Oppenheimer on November 5th from Perform to Outperform with a price target of $7.5 per share. Oppenheimer cited Q3 results and growth in assets under management as the reason behind the upgrade. FIG has a dividend yield of 4.2% and does not have a payout ratio due to negative EPS. The company cut its dividend by more than 35% in 2012.
Hatteras Financial (HTS)
Hatteras Financial Corp was upgraded by Ladenburg Thalmann on November 5th from Neutral to Buy on November 5th with a price target of $30 per share. The reason for the upgrade was not made available. HTS has a dividend yield of 13.4%. Because it is a REIT, we are not focusing on the payout ratio. Although the company has been paying dividends since 2008 it has cut its dividend in each of the last two years.
Mission West Properties (MSW)
Mission West Properties Inc was upgraded by Stifel Nicolaus on November 5th from a Hold to a Buy. The upgrade from Stifel Nicolaus followed news that Mission West entered into an agreement to sell its properties for $1.3B. MSW has a dividend yield of 6.8%. Because it is a REIT, we are not focused on the payout ratio. The company has not changed its dividend since it was cut in early 2011.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.