There are many ways to invest in the markets and a lot depends on your own personal circumstances and the amount of risk that you’re willing to take. For example, the buy and hold approach is great if you have the time but it doesn’t always fit everybody’s needs. Sometimes you just want to get paid now. Here’s five stocks for income generation from Zacks
Not all investors intend to wait forever to generate returns from their investments. Nor do they have an appetite for risk. They also might have the need for immediate and regular income generation.
Here are five stocks for such investors-
Vedanta Resources Plc (VDNRF )
Headquartered in London, Vedanta Resources plc is engaged in exploring, extracting and processing minerals, and oil and gas. It produces zinc, lead, silver, copper, aluminum, iron ore, oil and gas and commercial power. The company operates primarily in India, Zambia, Namibia, South Africa, Liberia, Ireland, Australia and the United Arab Emirates. The Basic Materials-Mining segment, of which Vedanta is a part, is in the top 23% of the 265 Zacks-classified industries. As may be expected, this isn’t a seasonal business, so output varies on other considerations. Operating and interest expenses form a smaller part of the outlay than COGS. Financial leverage is usually high, but the debt-to total capitalization ratio is maintained at very manageable levels of within 38% (which dropped down to nearly 30% in the June 2017 quarter). Vedanta is reportedly one of India’s leading exporters, especially in the zinc, aluminum and refined copper, iron ore and crude oil segments, so it is set to benefit from the government’s recent growth initiatives. Given the increasingly favorable operating climate, the company plans to significantly expand operations over the next few years.
As far as valuation is concerned, the company’s share price is up 19.3% in the last six months compared to 13.5% for the industry.
Wheeler Real Estate Investment Trust, Inc. (WHLR )
Headquartered in Virginia Beach, Wheeler Real Estate Investment Trust, Inc. is engaged in acquiring, financing, developing, leasing, owning and managing income producing assets, such as strip centers, neighborhood centers, grocery-anchored centers, community centers and free-standing retail properties. It operates in the mid-Atlantic, southeastern and southwestern United States.
The REIT & Equity Trust-Retail segment, of which WHLR is a part, is in the top 40% of the 265 Zacks-classified industries. The business is somewhat seasonal with strength in the December quarter, which is the biggest retail selling season. While revenues have been range bound in the last five years, gross profit, net income and earnings have been trending up. Interest expense has come down steadily as debt levels were lowered. The debt-to total capitalization ratio has therefore gone down to under 60%. Wheeler has been adding properties while selling off those that weren’t yielding enough, which together have increased its revenues and earnings. It has also leased out over 94% of its gross leasable area (GLA), an indication of the efficiency of its operations. But it’s also to be noted that the company’s credit facility may be reduced in the very near future, which could impact its ability to make new purchases.
Filed under: Stocks
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