Watching the markets with a watch to the principle probability, Raymond James strategist Tavis McCourt sees each threat and alternative in present market circumstances. The chance, in his opinion, stems from the apparent elements: the Democrats received each Georgia Senate seats within the latest runoff vote, giving the incoming Biden Administration majority assist in each Homes of Congress – and growing the chances of significant fiscal assist getting signed into legislation within the close to time period. Extra importantly, the coronavirus vaccination program is continuing, and reviews are exhibiting that Pfizer’s vaccine, one in all two authorised within the US, is efficient in opposition to the brand new pressure of the virus. A profitable vaccination program will pace up the financial restoration, permitting states to loosen lockdown rules – and get individuals again to work. The dangers are additionally coming from the political and public well being realms. The Home Democrats have handed articles of impeachment in opposition to President Trump, regardless of the upcoming pure closure of his time period of workplace, and that passage reduces the possibilities of political reconciliation in a closely polarized atmosphere. And whereas the COVID pressure is matched by present vaccines, there’s nonetheless a threat that a new pressure will develop that isn’t lined by current vaccinations – which might restart the cycle of lockdowns and financial decline. One other threat McCourt sees, past these two, could be a pointy rise in inflation. He doesn’t low cost that, however sees it as unlikely to occur quickly. “…product/service inflation is simply actually a chance AFTER re-openings, so the market feels a bit bullet proof within the very close to time period, and thus the continued rally, with Dems profitable the GA races simply including gas to the stimulus hearth,” McCourt famous. A few of McCourt’s colleagues among the many Raymond James analyst cadre are preserving these dangers in thoughts, and placing their imprimatur on sturdy dividend shares. We’ve regarded into Raymond James’ latest calls, and utilizing the TipRanks database, we’ve chosen two shares with high-yield dividends. These Purchase-rated tickers deliver a dividend yield of seven%, a powerful attraction for traders desirous about utilizing the present good occasions to arrange a defensive firewall ought to the dangers materialize. Enterprise Merchandise Companions (EPD) We’ll begin within the power sector, a enterprise section lengthy recognized for each excessive money flows and excessive dividends. Enterprise Merchandise Companions is a midstream firm, a part of the community that strikes hydrocarbon merchandise from the wellheads to the storage farms, refineries, and distribution factors. Enterprise controls over 50,000 miles price of pipelines, delivery terminals on Texas’ Gulf coast, and storage services for 160 million barrels oil and 14 billion cubic ft of pure gasoline. The corporate was damage by low costs and low demand in 1H20, however partially recovered within the second half. Revenues rotated, rising 27% sequentially to achieve $6.9 billion in Q3. That quantity was down year-over-year, slipping 5.four%, however got here in additional than 6% above the Q3 forecast. Q3 earnings, at 48 cents per share, had been slightly below the forecast, however had been up four% year-over-year and a pair of% sequentially. EPD has just lately declared its 4Q20 dividend distribution, at 45 cents per widespread share. That is up from the earlier fee of 44 cents, and marks the primary improve in two years. At $1.80 annualized, the fee yields 7.9%. Among the many bulls is Raymond James’ Justin Jenkins, who charges EPD a Sturdy Purchase. The analyst offers the inventory a $26 worth goal, which suggests a 15% upside from present ranges. (To look at Jenkins’ monitor document, click on right here) Backing his bullish stance, Jenkins famous, “In our view, EPD’s distinctive mixture of integration, steadiness sheet power, and ROIC monitor document stays greatest in school. We see EPD as arguably greatest positioned to face up to the unstable panorama… With EPD’s footprint, demand positive factors, challenge progress, and contracted ramps ought to greater than offset provide headwinds and decrease y/y advertising outcomes…” It’s not typically that the analysts all agree on a inventory, so when it does occur, take be aware. EPD’s Sturdy Purchase consensus score relies on a unanimous 9 Buys. The inventory’s $24.63 common worth goal suggests an upside of 9% from the present share worth of $22.65. (See EPD inventory evaluation on TipRanks) AT&T, Inc. (T) AT&T is without doubt one of the market’s immediately recognizable inventory. The corporate is a member in lengthy standing of the S&P 500, and it has repute as one of many inventory market’s greatest dividend payers. AT&T is a real large-cap trade big, with a market cap of $208 billion and the most important community of cellular and landline cellphone providers within the US. Its acquisition of TimeWarner (now WarnerMedia), in a course of operating between 2016 and 2018, has given the corporate a big stake within the cellular content material streaming enterprise. AT&T noticed revenues and earnings decline in 2020, underneath stress from the corona pandemic – however the decline was modest, as that very same pandemic additionally put a premium on telecom and networking methods, which tended to assist AT&T’s enterprise. Revenues in 3Q20 had been $42.three billion, 5% under the year-ago quarter. On optimistic notes, free money circulation rose yoy from $11.four billion to $12.1 billion, and the corporate reported a internet acquire of 5.5 million new subscribers. The subscriber progress was pushed by the brand new 5G community rollout – and by premium content material providers. The corporate held up its repute as a dividend champ, and has made its most up-to-date dividend declaration for fee in February 2021. The fee, at 52 per widespread share, is the fifth in a row at present degree and annualizes to $2.08, giving a yield of seven.2%. For comparability, the common dividend amongst tech sector peer corporations is simply zero.9%. AT&T has stored its dividend sturdy for the previous 12 years. Raymond James analyst Frank Louthan sees AT&T as a traditional defensive worth inventory, and describes T’s present state as one with the dangerous information ‘baked in.’ “[We] consider there’s extra that may go proper throughout the subsequent 12 months than can worsen for AT&T. Throw in the truth that shares are closely shorted, and we consider it is a recipe for upside. Massive cap worth names are arduous to come back by, and we predict traders who can wait a couple of months for a imply reversion whereas locking in a 7% yield ought to be rewarded for getting AT&T at present ranges,” Louthan opined. According to these feedback, Louthan charges T an Outperform (i.e. Purchase), and his $32 worth goal implies room for 10% progress from present ranges. (To look at Louthan’s monitor document, click on right here) What does the remainder of the Road suppose? Trying on the consensus breakdown, opinions from different analysts are extra unfold out. 7 Purchase scores, 6 Holds and a pair of Sells add as much as a Average Purchase consensus. As well as, the $31.54 common worth goal signifies ~9% upside potential. (See AT&T inventory evaluation on TipRanks) To search out good concepts for dividend shares buying and selling at engaging valuations, go to TipRanks’ Finest Shares to Purchase, a newly launched instrument that unites all of TipRanks’ fairness insights. Disclaimer: The opinions expressed on this article are solely these of the featured analysts. The content material is meant for use for informational functions solely. It is rather vital to do your personal evaluation earlier than making any funding.