3 Sizzling Ultra-High-Yield Stocks Under $50 With Upside Potential
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3 Sizzling Ultra-High-Yield Stocks Under $50 With Upside Potential
"Investors can have their higher yields and capital appreciation potential, too. But, of course, there are always added risks to consider, and when it comes to the hard-hit higher-yielders out there, the fundamentals and growth narrative have taken a turn for the worse. As their share prices have slid, their yields have swelled, but with their managers hard at work on turnaround efforts, there is still the potential for upside."
"And in this piece, we'll check in on four "sizzling" higher-yielding names going for less than $50 per share that still have potential for upside. Indeed, that checks a lot of boxes for yield-hungry investors who also desire capital gains and a bite-sized price of admission. In any case, many of the higher-yielding stocks have fallen so much that their share prices are well below the $50 mark."
Many higher-yield stocks show weakened fundamentals and slowed growth as share prices fall and yields rise. Managers are executing turnaround efforts that could restore upside, but elevated risk remains. Several higher-yield names trade under $50, appealing to yield-seeking investors wanting capital gains and a low price of entry. The central issue is whether these shares can appreciate while preserving or growing dividends. Dine Brands trades around $25 with a $388 million market cap, a roughly 76% decline, an 8.1% yield, and a payout ratio under 70%. The company faces heavy competition, margin pressures, and unemployment risk, but retains a decent balance sheet, solid free cash flow to support dividends, and management efforts to offset inflationary cost pressures, with valuation noted near 8.4 times trailing price-
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