By Kumar Balani
May 27, 2022 – I believe that in this period of broadly-declining equity prices in the major indices – the Dow Jones Industrial Average, the Standard and Poor 500, and the National Association of Securities Dealers Automated Quotations (NASDAQ) – careful, well-researched investing should be the approach used to minimize further declines in your portfolio. Why? Because most of us have no control over market-influencing events such as interest rates, supply chain problems, unemployment claims, and what have you.
Further, to offset the possibility of shrinking stock prices in the coming months, it makes sense to buy stocks that pay out high rates of dividends. Furthermore, why not own those that pay you dividends each month?
Broadmark Realty Cap Inc. (NYSE: BRMK), a NASDAQ member, is such a stock. On May 26, it closed at $7.45 a share. After market close, its share price was up 30 cents to $7.75. But even $7.75 is a great price to buy shares of this company.
What are some of its key fundamental ratios pertaining to its income and balance sheet? They are the following:
- Over a nearly 52-week period, its price per share has ranged from a high of $11.10 on June 21, 2021 to a low of $7.45 yesterday. As you probably know, dividend rates rise when stock prices decline.
- Today, May 27, 2022 is its ex-dividend date, meaning if you purchase shares today, you will get $0.07 on the next monthly dividend pay date of June 15, 2022.
- This company’s price-to-earnings (PE) is a modest 12.21, whereas the PE of the broad S&P 500 is 67 percent higher, at 20.21. Just last week, the S&P 500 PE ratio was 30.90. So you can see prices have come down a lot in one week alone.
- The insiders of this company – its employees, including managers – are buying shares. Between March 14 and 20 this year, 188,959 shares were bought. This means that they believe their company’s future prospects are positive.
