The stock market’s four-week rally ended last week, but the prior month of gains provided the best results that beleaguered stock investors have seen since late last year. Despite some wishful thinking across Wall Street, it is unlikely the hoped-for “Fed pivot” will be coming any time soon.

Federal Reserve President Bullard said late last week he was on board with yet another 75-basis-point increase in the federal funds rate in September. Unless the inflation rate data comes in drastically lower for August, that may be the call.

So, what do investors do to fight the debilitating effects of inflation and rising interest rates? Buy stocks that have hard-asset plays, in addition to real estate investment trusts (REITs), shipping stocks and business development companies that also pay double-digit yields.

We found six top stocks that are Buy rated across Wall Street and are very solid ideas during these volatile times. It is important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.

Broadmark Realty

Similar to a mortgage REIT, this top company is an investor in what is known as deed of trust loans. Broadmark Realty Capital Inc. (NYSE: BRMK) engages in the underwriting, funding, servicing and managing of a portfolio of short-term and first deed of trust loans to fund the construction, development and investment in residential or commercial properties in the United States.

Because the company has elected to be taxed as a real estate investment trust, it is not subject to corporate income tax on that portion of its net income that is distributed to shareholders.

Investors receive an 11.95% distribution. B. Riley Securities has a $9 target price, and the consensus target is $8.17. Friday’s final trade was reported at $7.03.

Ellington Financial

This quality mortgage REIT is a Wall Street favorite. Ellington Financial Inc. (NYSE: EFC) through its subsidiary Ellington Financial Operating Partnership, acquires and manages mortgage-related, consumer-related, corporate-related and other financial assets in the United States.

The company acquires and manages residential mortgage-backed securities (RMBSs) backed by prime jumbo, Alt-A, manufactured housing and subprime residential mortgage loans; RMBSs for which the principal and interest payments are guaranteed by the U.S. government agency or the U.S. government-sponsored entity; residential mortgage loans; commercial mortgage-backed securities; and commercial mortgage loans and other commercial real estate debt.

Ellington Financial also provides collateralized loan obligations, mortgage-related and non-mortgage-related derivatives, corporate debt and equity securities, corporate loans and other strategic investments. In addition, the company offers consumer loans and asset-backed securities backed by consumer and commercial assets.

Investors take home an 11.53% dividend. The Piper Sandler target price is $17, while the consensus target is $16.59. The shares closed on Friday at $15.52.

This very well-known name on Wall Street offers a solid entry point at current levels. FS KKR Capital Corp. (NASDAQ: FSK) is a business development company specializing in investments in debt securities. It seeks to purchase interests in loans through secondary market transactions or directly from the target companies as primary market investments.

The company also seeks to invest in first lien senior secured loans, second lien secured loans and, to a lesser extent, subordinated or mezzanine loans. In connection with the debt investments, the firm also receives equity interests such as warrants or options as additional consideration. It also seeks to purchase minority interests in the form of common or preferred equity in our target companies, either in conjunction with one of the debt investments or through a co-investment with a financial sponsor.

Additionally, on an opportunistic basis, the fund may invest in corporate bonds and similar debt securities. The fund does not seek to invest in start-up companies, turnaround situations or companies with speculative business plans. It seeks to invest in small and middle-market U.S. companies with annual revenue between $10 million to $2.5 billion. It seeks to exit from securities by selling them in a privately negotiated over-the-counter market.

The company posted stellar second-quarter results, as earnings and revenues surpassed Wall Street estimates. It also announced it will continue a huge stock buyback.

Shareholders receive an 11.13% dividend. The $25 Jefferies price target compares with a consensus target of $22.56 and Friday’s close at $21.92 a share.

Genco Shipping & Trading

This is another top stock in the group that broke out late last month and looks poised to trade higher. Genco Shipping & Trading Ltd. (NYSE: GNK) engages in the ocean transportation of dry bulk cargoes worldwide. The company owns and operates dry bulk carrier vessels to transport iron ore, coal, grains, steel products and other dry bulk cargoes. It charters its vessels primarily to trading houses, including commodities traders, producers and government-owned entities.

Genco provides a full-service logistics solution to customers utilizing an in-house commercial operating platform, as it transports key cargoes such as iron ore, grain, steel products, bauxite, cement, nickel ore among other commodities along worldwide shipping routes.

The wholly owned, high-quality, modern fleet of dry cargo vessels consists of the larger Capesize (major bulk) and the medium-sized Ultramax and Supramax vessels (minor bulk), enabling it to carry a wide range of cargoes. It makes capital expenditures from time to time in connection with vessel acquisitions. As of April 12, 2022, the company’s fleet consisted of 17 Capesize, 15 Ultramax and 12 Supramax vessels with an aggregate capacity of approximately 4,635,000 deadweight tonnage and an average age of 10.1 years.

Genco Shipping & Trading stock comes with a 12.83% dividend. Jefferies has set its target price at $25, but the consensus target is $27.55. The shares ended Friday trading at $15.59 apiece.

This off-the-radar energy play is a safe way to play the sector while getting huge dividends. Kimbell Royalty Partners L.P. (NYSE: KRP) acquires and owns mineral and royalty interests in oil and natural gas properties in the United States.

As of December 31, 2021, it owned mineral and royalty interests in approximately 11.4 million gross acres and overriding royalty interests in approximately 4.7 million gross acres. Its interests are located in 28 states and include ownership in approximately 122,000 gross wells, including approximately 46,000 wells in the Permian Basin.

The company reported record second-quarter revenue and operating results earlier this month. Every metric from run-rate daily production to revenue to cash available for distribution came in at record highs. In addition, the company announced a second-quarter 2022 cash distribution of $0.55 per common unit, an increase of 17% from the first and a new record, reflecting a payout ratio of 75% of cash available for distribution.

Investors receive a 12.42% distribution. Raymond James has a Strong Buy rating to go with its $25 target price. The consensus target is $23.67, and Friday’s close was at $17.72.

Redwood Trust

While operating in the mortgage business, this company is very diversified and looks like a solid play for the rest of 2022. Redwood Trust Inc. (NYSE: RWT) operates as a specialty finance company in the United States. The company operates through three segments.

The Residential Lending segment operates a mortgage loan conduit that acquires residential loans from third-party originators for subsequent sale, securitization or transfer to its investment portfolio. This segment also offers derivative financial instruments to manage risks associated with residential loans.

The Business Purpose Lending segment operates a platform that originates and acquires business purpose loans, such as single-family rental and bridge loans for subsequent securitization or transfer into its investment portfolio.

The Third-Party Investments segment invests in residential mortgage-backed securities issued by third parties, as well as in K-Series multifamily loan securitizations and SLST reperforming loan securitizations. This segment also offers servicer advance and other residential and multifamily credit investments.

The dividend yield is 11.19%. Piper Sandler’s $11 target price is in line with the $11.06 consensus figure. On Friday, Redwood Trust stock closed at $8.22.

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These more aggressive investments likely are not suitable for conservative investors with preservation of capital as the number one objective. But all have been hammered this year, and most are offering the best entry points since last year.

With second-quarter earnings reporting all but over, and most of these top companies performing well, now may be a great time to pick up some shares. However, investors may want to buy partial positions to see if the selling from Friday continues for the rest of August and into September.

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