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AFC Gamma has been paying out dividends since 2021. The most recent declaration came in September of this year, for an October 15 payout of 33 cents per common share. The payment’s annualized rate, $1.32 per share, gives an impressive forward yield of nearly 14.3%.

The company’s dividend is supported by its financial results. In the last reported quarter, 3Q24, AFC Gamma showed distributable earnings per share, a DEPS, of 35 cents per common share, beating the forecast by a penny – and covering the dividend payment with room to spare.

Seaport analyst Sonny Randhawa highlights AFC Gamma’s strength in its niche, as well as its potential to continue generating returns in a growth industry.

“With the rest of the cannabis sector range bound anxiously awaiting the DEA’s decision on rescheduling, the ultimate elimination of 280E taxes is just one of the many company specific and industry catalysts that should benefit AFCG over the coming years… AFCG’s cycle tested management team and robust investment review process helped investors significantly outperform the largest cannabis REIT and our benchmark US cannabis ETF by over 26% and 826%, respectively, by generating a 37% total return since its first trading day. We believe the best is yet to come, as AFCG offers investors the rare opportunity to sit at the top of the capital stack in an emerging growth industry while earning equity like returns,” Randhawa explained.

These comments back up the analyst’s Buy rating on ACFG, and his $13 price target implies a one-year upside of 42%. Add in the dividend yield, and the total return on this stock can reach 56% in the coming year. (To watch Randhawa’s track record, click here)

AFC Gamma has not attracted a lot of analyst attention, but those who have recently reviewed the stock agree with Randhawa’s assessment. ACFG has a unanimous Strong Buy analyst consensus rating, based on 3 recent reviews. The stock’s $13.33 average price target suggests room for a 46% upside in the coming year. (See ACFG stock forecast)

Four Corners Property Trust (FCPT)

The next stock on our list, Four Corners Property Trust, is a more traditional REIT. This company is focused on restaurant properties, and has amassed a solid portfolio of properties across 47 states. The company has investments in 1153 properties, representing 156 restaurant brands, totaling 7.8 million square feet, and having an average lease term of 7.3 years. Four Corners’ business is acquiring, owning, and leasing these properties, with the goal of generating returns for its own investors.

The casual investor will likely recognize some of the brands in Four Corners’ portfolio. Of the company’s total investments, 314, or 35%, are in Olive Garden restaurant locations; the company also leases properties to 116 Longhorn Steakhouse locations, 82 Chili’s branches, and 23 Outback Steakhouses. In addition, 10% of the company’s portfolio is leased to auto service locations, and 8% to other retailers.

On the financial front, Four Corners’ 3Q24 results showcased total revenue of $66.79 million, reflecting a 3% year-over-year increase, though falling just $690,000 short of expectations. The bottom-line figure, the 27-cent EPS, was in-line with expectations. The company reported adjusted funds from operations (AFFO) of 43 cents per share, up a penny from the prior year.

The AFFO fully supports the dividend, which was increased in the most recent declaration, on November 11 for Q4, to a rate of 35.5 cents per common share. At this rate, the payment annualizes to $1.42 per share. The forward yield is sound, at 5%.

Four Corners stock has caught the attention of UBS analyst Michael Goldsmith, who sees plenty of reasons for investors to buy in.

“We rate FCPT Buy as we think its favorable cost of capital & diversification strategy away from restaurants support upside to AFFO growth at a favorable valuation… We model 2025 UBSe AFFO growth of 4%, which is ahead of consensus by ~100 bps, and positions FCPT above the peer avg… We see upside to FCPT’s valuation from its accelerating acquisition activity in 2H’24. Based on our correlation of avg. quarterly acq. volume and avg. quarterly AFFO multiple (R=0.47), we believe FCPT’s 2H’24 activity is deserving of an AFFO multiple of 18x (currently 16x),” Goldsmith opined.

That Buy rating comes along with a $33 price target that points toward a one-year gain of ~17%. Add in the dividend yield, and the total one-year return is in the neighborhood of 22%. (To watch Goldsmith’s track record, click here)

Overall, FCPT shares have a Moderate Buy consensus rating, based on 5 analyst reviews that break down to 3 Buys and 2 Holds. The current trading price of $28.22 and average target price of $30.50 together imply an upside of 8% in the next 12 months. (See FCPT stock forecast)

To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a tool that unites all of TipRanks’ equity insights.

Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.

But there may be more to this selling activity than meets the eye.

Even though Warren Buffett hinted at tax-related selling at Berkshire’s annual shareholder meeting, he might be less than impressed with Apple’s valuation. The Oracle of Omaha is an ardent value investor, and Apple is currently trading at 38 times trailing-12-month earnings. Apple’s historically high valuation multiple is on par with the S&P 500‘s Shiller price-to-earnings (P/E) ratio hitting its third-highest valuation multiple, when back-tested to January 1871.

Additionally, Apple’s physical product sales have stalled over the last two years. While subscription services growth has been robust, demand for iPhone, Mac, iPad, and accessories has been lukewarm, at best.

Despite being a big-time net seller of stocks in 2024, Warren Buffett and his top investment advisors, Todd Combs and Ted Weschler, have done some very selective buying. Examples include building up their stake in Wall Street’s most-popular reverse stock split, Sirius XM Holdings, as well as adding to property and casualty insurer Chubb, which was Berkshire’s confidential holding until mid-May.

During the September-ended quarter, Buffett and his team did very little buying… with one exception. The largest purchase of the third quarter was to open a brand-new position in beloved fast-food restaurant chain Domino’s Pizza (NYSE: DPZ). The 1,277,256 shares purchased equated to almost $550 million in market value, as of the end of September.

Domino’s Pizza has been one of the top-performing stocks on Wall Street since its initial public offering (IPO) in 2004. Since its debut on July 13, 2004, shares have catapulted higher by more than 7,000%, factoring in dividends and the robust after-hours move associated with Berkshire Hathaway’s 13F filing.

In December of last year, Domino’s introduced its five-year plan that it dubbed “Hungry for MORE.” The reason “MORE” is capitalized is because it represents an acronym for the ways the company aims to improve its operating efficiency and customer loyalty in the years to come.

Domino’s “M” is about creating the “most delicious food,” and is inspired by new menu offerings and the consistency of its food-prep process. The “O” stands for “operational excellence” and is focused on food consistency and maximizing output through its proprietary tech-driven operating system. The “R” is about “renowned value” and relates to the company’s rewards program, which is designed to keep customers loyal to the brand. Lastly, the “E” is for “enhancing” the brand’s value through its franchisees.

Warren Buffett is a huge fan of management teams that own their successes and their failures. Domino’s success really kicked off in the early 2010s with its mea culpa advertising campaign. The company hasn’t been afraid to admit past mistakes (i.e., that its pizza was subpar) and has successfully built rapport with consumers through its honest marketing.

The Oracle of Omaha is also attracted to companies with shareholder-friendly capital-return programs. Domino’s has increased its base annual payout for more than a decade and has repurchased its shares in all but a handful of quarters. A majority of Berkshire Hathaway’s holdings are time-tested dividend payers.

Although it’s hard to argue against Domino’s stellar return, a forward P/E ratio of 27 isn’t exactly cheap. It’ll be interesting to see if the Oracle of Omaha and his team build on this position in the quarters to come.

Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.

On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:

• Amazon: if you invested $1,000 when we doubled down in 2010, you’d have $22,819!*

• Apple: if you invested $1,000 when we doubled down in 2008, you’d have $42,611!*

• Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $444,355!*

Right now, we’re issuing “Double Down” alerts for three incredible companies, and there may not be another chance like this anytime soon.

See 3 “Double Down” stocks »

*Stock Advisor returns as of November 11, 2024

Sean Williams has positions in Sirius XM. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway, and Domino’s Pizza. The Motley Fool has a disclosure policy.

Billionaire Warren Buffett Sold 67% of Berkshire’s Stake in Apple and Is Piling Into a Beloved Consumer Brand Whose Stock Has Soared by 7,000% Since Its IPO was originally published by The Motley Fool