At a recent market price of $ 223.44, it is trading just 10 times analysts’ earnings estimates for fiscal 2023 of $ 22.27 per share. It sounds like a good deal in a market that is currently trading at around 22 times expected earnings. Especially when combined with FedEx’s anticipated earnings growth rate of nearly 12% annualized over the next five years, the company’s shares look reasonably priced.
From a dividend perspective, FedEx is currently offering its investors $ 0.75 per share per quarter. Its dividend has generally increased over time, but the company does not increase its payout every year. This works out to a current yield of around 1.3%, which isn’t too bad considering the potential for long-term dividend growth. Even with the short-term challenges the company faces, this dividend consumes only about 15% of its profits, giving reason to believe that growth can continue.
# 2: a hard money lender with an impeccable track record
Broadmark Real Estate Capital (NYSE: BRMK) is a publicly traded lender that focuses on the construction industry. This means that it is focused on providing loans that might otherwise fall through the cracks of traditional home loans, such as rehabilitations, project completion and bridging loans.
It’s a bit of a risky business, which is probably why the market is offering its shares at around 15 times the expected earnings in 2022 and 10 times the expected earnings. This reasonable price is part of what makes it attractive. Additionally, the company is structured as a Real Estate Investment Trust (REIT), which means Broadmark Realty Capital must pay out at least 90% of its profits as dividends. This requirement, combined with its reasonable valuation, means that it offers investors a current yield of around 8.4%.