Buy 16 August Exceptional Dividend Dogs Now

Buy 16 August Exceptional Dividend Dogs Now


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Foreword

This article is based on eight Kiplinger investing articles, aimed at finding the Best-Buy, U.S. Infrastructure, Value, Growth, Small-Cap, High-Q Dividend, Housing, and Cash-Flow stocks.

The 21 Best Stocks to Buy for the Rest of 2021

“Call it a comeback. Many of the best stocks to buy for the rest of this year remain heavily tied to economic recovery.” prospects.

by: Charles Lewis Sizemore, CFA

August 6, 2021

14 Best Infrastructure Stocks for America’s Big Building Spend

“These 14 infrastructure stocks represent several themes that could enjoy a boost should the roughly $1 trillion Bipartisan Infrastructure Investment and Jobs Act become law.”

by: Charles Lewis Sizemore, CFA

August 10, 2021

The 16 Best Value Stocks for the Rest of 2021

“Value stocks have been en vogue this year. These names could see upside as the U.S. economy continues to recover from the COVID-19 pandemic.”

by: Lisa Springer

June 15, 2021

10 Dividend Growth Stocks You Can Count On

“What should investors prioritize in dividend growth stocks? A history of aggressive payout expansion, and the ability to generate enough cash to keep the hikes coming.”

by: Andrew Packer

May 3, 2021

6 Small-Cap Dividend Stocks to Buy Now

“Small-cap stocks aren’t generally seen as income-building investments, but the names on this list offer hefty payouts for shareholders.”

by: Louis Navellier

August 13, 2021

10 High-Quality Stocks With Dividend Yields of 4% or More

“There’s no shortage of stocks with dividends these days, but not all of them are worth chasing. Here’s a list of top-rated, high-yielding names to consider.”

by: Dan Burrows

July 12, 2021

12 Housing Stocks to Ride the Red-Hot Market

“The U.S. has a housing shortage and a love affair with home improvement, both of which could create tailwinds for this group of housing stocks.”

by: Will Ashworth

June 8, 2021

10 Free Cash Flow Gushers for Dividends, Buybacks and More

“Excess free cash flow can often be used to generate long-term value for companies. Here are 10 FCF stocks that could be poised for growth.”

by: Will Ashworth

May 24, 2021

Any collection of stocks is more clearly understood when subjected to yield-based (dog catcher) analysis, this collection of Kiplinger Exceptional Dogs is perfect for the dogcatcher process. Below are the August 24, 2022 data for 76 dividend stocks plus 10 “No-Pays” parsed by YCharts.

The prices of 16 of these 76 Kiplinger Exceptional Dividends (listed by yield) made the possibility of owning productive dividend shares from this collection more viable for first-time investors.

Those 16 Dogcatcher ideal stocks for August are: Vale S.A. (VALE); Altria Group Inc. (MO); Medical Properties Trust Inc. (MPW); Enterprise Products Partners L.P. (EPD); M.D.C. Holdings Inc. (MDC); Verizon Communications Inc. (VZ); Kinder Morgan Inc. (KMI); Gaming and Leisure Properties Inc. (GLPI);Newmont Corp. (NEM); Rent-A-Center Inc. (RCII); National Retail Properties Inc. (NNN); Williams Companies Inc. (WMB); Huntington Bancshares Inc. (HBAN); Franklin Resources Inc. (BEN); Retail Opportunity Investments Corp. (ROIC); Flowers Foods Inc. (FLO).

All sixteen live-up to the ideal of having their annual dividends from a $1K investment exceed their single share prices. Many investors see this condition as “look closer to maybe buy” opportunity.

Actionable Conclusions (1-10): Analysts Estimated 18.82% To 49.36% Net Gains For Ten Exceptional 2021 Dividend Stocks To August 2023

Six of ten top exceptional dividend stocks by yield were also among the top ten gainers for the coming year based on analyst 1-year target prices. (They are tinted gray in the chart below). Thus, the yield-based forecast for these August dogs, as graded by Wall St. Wizards, was 60% accurate.

KEDS (1A) GAINERS AUG, 22-23

Source: YCharts.com

Estimated dividends from $1000 invested in each of the highest yielding exceptional stocks, added to the median of aggregate one-year target prices from analysts (as reported by YCharts), generated the following results. Note: one-year target prices by lone analysts were not included. Ten probable profit-generating trades projected to August 2023 were:

Vale S.A. was projected to net $493.55, based on dividends, plus the median of target price estimates from 23 analysts, less broker fees. The Beta number showed this estimate subject to risk/volatility 7% less than the market as a whole.

Newmont Corp. was projected to net $492.23, based on the median of target estimates from 17 analysts, plus dividends, less broker fees. The Beta number showed this estimate subject to risk/volatility 74% less than the market as a whole.

Huntington Bancshares Inc. was projected to net $443.34, based on the median of estimates from 7 analysts, plus dividends, less broker fees. The Beta number showed this estimate subject to risk/volatility 67% greater than the market as a whole.

Medical Properties Trust Inc. was projected to net $328.63, based on dividends, plus the median of target price estimates from 13 analysts, less broker fees. The Beta number showed this estimate subject to risk/volatility 24% less than the market as a whole.

Sturm, Ruger & Co., Inc. (RGR) was projected to net $304.31, based on dividends, plus the median of target price estimates from 2 analysts, less broker fees. The Beta number showed this estimate subject to risk/volatility 57% under the market as a whole.

Verizon Communications Inc. was projected to net $256.61, based on dividends, plus the median of target price estimates from 22 analysts, less broker fees. The Beta number showed this estimate subject to risk/volatility 67% under the market as a whole.

JPMorgan Chase & Co. (JPM) was projected to net $215.35 based on the median of target price estimates from 24 analysts, plus annual dividend, less broker fees. The Beta number showed this estimate subject to risk/volatility 12% more than the market as a whole.

M.D.C. Holdings Inc. was projected to net $210.42, based on dividends, plus median target price estimates from twenty-one analysts, less broker fees. The Beta number showed this estimate subject to risk/volatility 42% more than the market as a whole.

LyondellBasell Industries N.V. (LYB) was projected to net $199.71, based on dividends, plus the median of target price estimates from twenty analysts, less broker fees. The Beta number showed this estimate subject to risk/volatility 27% under the market as a whole.

AbbVie Inc. (ABBV) was projected to net $188.18, based on the median of target price estimates from twenty-three analysts, plus annual dividend, less broker fees. The Beta number showed this estimate subject to risk/volatility 30% less than the market as a whole.

The average net gain in dividend and price was estimated at 31.32% on $10k invested as $1k in each of these ten stocks. These gain estimates were subject to average risk/volatility 12% under the market as a whole.

KEDS (2) Open source dog art DDC2 AUG 22 from dividenddogcatcher.com

Source: Open source dog art from dividenddogcatcher.com

The Dividend Dogs Rule

Stocks earned the “dog” moniker by exhibiting three traits: (1) paying reliable, repeating dividends, (2) their prices fell to where (3) yield (dividend/price) grew higher than their peers. Thus, the highest yielding stocks in any collection became known as “dogs.” More precisely, these are, in fact, best called, “underdogs”.

60 Kiplinger Exceptional Stocks Per August Analyst Targets

KEDS (3A) 1-60BYTARGET AUG, 22-23

Source: YCharts

60 Kiplinger Exceptional Dividend Stocks Per June Yield Data

KEDS (3B) 1-60BYYIELD AUG, 22-23

Source: YCharts.com

Actionable Conclusions (11-20): Ten Top Exceptional Stocks By Yield

Top ten August Kiplinger Exceptional 2021 Dividend stocks by yield represented seven of eleven Morningstar sectors. The first place was held by the first of two basic materials representatives, Vale S.A. [1], the other placed ninth, LyondellBasell Industries N.V. [9].

Next, a lone consumer defensive representative placed second, Atria Group Inc. [2]. Then, third, and eighth places, went to two real estate, equities, Medical Properties Trust [3], and Gaming and Leisure Properties Inc. [8].

Fourth and seventh places, were claimed by energy sector representatives, Enterprise Products Partners L.P. [4], and Kinder Morgan Inc. [7].

The consumer cyclical representative took the fifth slot, M.D.C. Holdings Inc. [5]. One communication services entity placed sixth, Verizon Communications Inc. [6].

Finally, a lone industrials representatives found itself in the tenth position on this list, Sturm, Ruger & Co., Inc. [10], to complete the top ten exceptional 2021 dividend pack for August.

Actionable Conclusions: (21-30) Ten Top Exceptional 2021 Dividend Stocks Showed 15.58%-45.31% Upsides While (31) Two Down-siders Fell -1.88% and -5.43% For August 2023

KEDS (4) UP/DNSIDES AUG 22-23

Source: YCharts.com

To quantify top-dog rankings, analyst median price target estimates provided a “market sentiment” gauge of upside potential. Added to the simple high-yield metrics, the median of analysts’ target price estimates became another tool to dig out bargains.

Analysts Forecast A 11.66% Advantage For 5 Highest Yield, Lowest Priced, of 10 Exceptional Dividend Stocks To August 24, 2023

Ten-top Kiplinger Exceptional 2021 Dividend stocks were culled by yield for this update. Yield (dividend / price) results provided by YCharts did the ranking.

KEDS (5)10LIST AUG, 22-23

Source: YCharts.com

As noted above, top-ten Kiplinger exceptional 2021 stocks screened 8/24/22, showing the highest dividend yields, represented seven of eleven in the Morningstar sector scheme.

Actionable Conclusions: Analysts Predicted 5 Lowest-Priced Of The Top-Ten Highest-Yield Exceptional 2021 Dividend Stocks (32) Delivering 26.65% Vs. (33) 23.87% Net Gains by All Ten Come August 2023

KEDS (6) 10GAINS AUG, 22-23

Source: YCharts.com

$5000 invested as $1k in each of the five lowest-priced stocks in the top ten Kiplinger Exceptional 2021 Dividend kennel by yield were predicted by analyst 1-year targets to deliver 11.66% more gain than $5,000 invested as $.5k in all ten. The very lowest-priced selection, Vale S.A., was projected to deliver the best net gain of 49.35%.

KEDS (7)10BYPRICE AUG 22-23

Source: YCharts.com

The five lowest-priced top-yield Kiplinger Exceptional 2021 Dividend Dogs as of August 24 were: Vale S.A.; Medical Properties Trust Inc.; Kinder Morgan Inc.; Enterprise Products Partners L.P.; M.D.C. Holdings Inc., with prices ranging from $13.31 to $33.35.

Five higher-priced Kiplinger 2021 exceptional dividend dogs as of August 24 were: Verizon Communications Inc.; Altria Group Inc.; Gaming and Leisure Properties Inc.; Sturm, Ruger & Co., Inc; LyondellBasell Industries N.V., whose prices ranged from $43.55 to $88.25.

The distinction between five low-priced dividend dogs and the general field of ten reflected Michael B. O’Higgins’ “basic method” for beating the Dow. The scale of projected gains based on analyst targets added a unique element of “market sentiment” gauging upside potential. It provided a here-and-now equivalent of waiting a year to find out what might happen in the market. Caution is advised, since analysts are historically only 20% to 90% accurate on the direction of change and just 0% to 15% accurate on the degree of change.

The net gain/loss estimates above did not factor in any foreign or domestic tax problems resulting from distributions. Consult your tax advisor regarding the source and consequences of “dividends” from any investment.

Afterword

This article features 86 Kiplinger 2021 Exceptional Stocks and with all but ten paying dividends. The article focuses on the top 30 so more than half the original list of companies is neglected. Therefore, below is the complete list of 86 stocks grouped by authors.

KEDS (8) 86 BYAUT AUG, 22-23

Sources: Kiplinger.com,YCharts.com

If somehow you missed the suggestion of which stocks are ripe for picking at the start of this article, here is a reprise of the list at the end:

The prices of 16 of these 86 Kiplinger Exceptional Stocks for 2022 (listed by yield) made the possibility of owning productive dividend shares from this collection more viable for first-time investors.

16 Dogcatcher 2021 Exceptional Ideal Stocks for August

KEDS (9) 16DC IDEALS AUG, 22-23

Source: YCharts.com

All sixteen live-up to the ideal of having their annual dividends from a $1K investment exceed their single share prices. Many investors see this condition as “look closer to maybe buy” opportunity.

How All Ten Top Kiplinger 2021 Exceptional Dividend Stocks Could Become Ideal and Fair Priced Dogs

KEDS (10) CURRENT vs FAIR PR KEDS AUG,22-23

Source: YCharts.com

Since eight of the top ten Exceptional Dividend shares are now priced less than the annual dividends paid out from a $1K investment, the above charts compare those eight plus the two at recent prices (top chart) with the fair pricing of all ten top dogs conforming to that ideal (middle chart). The dollar and percentage difference between the recent and fair priced are shown in the bottom chart.

With renewed downside market pressure to 22%, it is possible for all ten highest-yield Kiplinger Exceptional Dividend stocks to become fair-priced with their annual yield (from $1K invested) meeting or exceeding their single share prices. This pack got a big head-start with eight of ten already fair priced.

Stocks listed above were suggested only as possible reference points for your purchase or sale research process. These were not recommendations.

Disclaimer: This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a solicitation, recommendation or endorsement to buy or sell any security. Prices and returns on equities in this article except as noted are listed without consideration of fees, commissions, taxes, penalties, or interest payable due to purchasing, holding, or selling same.

Graphs and charts were compiled by Rydlun & Co., LLC from data derived from www.indexarb.com; YCharts.com; finance.yahoo.com; analyst mean target price by Thomson/First Call in YahooFinance. Dog image:Open source dog art from dividenddogcatcher.com.



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August 29, 2022 / Markets / Tags: , , ,

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