Results from the Yahoo technology sector tallied as of market closing prices June 28 compared with analyst mean target gain results one year hence featured Partner Communications Co. (NASDAQ:PTNR), an Israeli firm from the wireless communications industry, brandishing a 313.40% price upside.
The chart above used one year mean target price set by brokerage analysts matched against June 28 closing prices to compare ten sector stocks showing the highest upside price potential into 2014 out of 20 selected by yield. The number of analysts providing price estimates was noted after the name for each stock. Three to nine analysts were considered optimal for a valid mean target price estimate.
This report series started applying dog dividend methodology in the fall of 2011 to reveal possible buy opportunities in each of eight major market sectors listed by Yahoo Finance: basic materials (BasMats), consumer goods (ConGo), financials (Fins), healthcare (Heal), industrial goods (IndiGo), services (Svcs), technology (Tec), and utilities (Utes).
Note my Arnold Tec selections for May/June as follows:
Dog Metrics Selected Ten Top Technology Sector Stocks
Top ten technology sector stocks from Yahoo Finance screening showing the biggest dividend yields March 15 represented five industries. Top technology sector stock, Windstream Corporation (NASDAQ:WIN) was one of five Telecom services - domestic representatives. The others placed third, fourth, seventh, and tenth: Frontier Communications Corporation (NYSE:FTR); Consolidated Communications Holdings (NASDAQ:CNSL); CenturyLink, Inc. (NYSE:CTL); Hickory Tech Corp. (OTCPK:HTCO). Second dog, NTELOS Holdings Corp. (NASDAQ:NTLS), was the lone wireless technology firm. Telecom Corporation of NZ (NZTCY.OB), in fourth was one of two Telecom services - foreign representatives. The other foreign firm, France Telecom - Orange (NYSE:ORAN) placed ninth. One semiconductor - broad line firm, Intersil Corporation (NASDAQ:ISIL), was slotted sixth. The lone diverse communication firm on the list was Telecom Argentina (NYSE:TEO), at number eight.
Dividend vs. Price Results Compared to Dow Dogs
Below is a graph of the relative strengths of the top ten technology dogs by yield as of market close 6/28/2013 compared to those of the Dow. Historic projected annual dividend history from $1000 invested in each of the ten highest yielding stocks and the total single share prices of those ten stocks created the data points shown in green for price and blue for dividends.
Actionable Conclusion (1): Technology Dogs Made Mixed Moves as Dow Stayed Bullish
Technology dividend payers as of June 28 showed lower dividend from $10k invested in each of the top ten stocks, while aggregate single share price of those ten also dropped. Dividend dropped at a rate of 6.75% after April while total single share price sagged 3% in that period.
For the Dow dogs, meanwhile, projected annual dividend from $1k invested in each of the top ten dropped over 2.2% since April, while aggregate single share price popped up over 13.6%. The dow dogs bull run increased their overbought condition as aggregate single share price of the ten exceeded projected annual dividend from $1k invested in each of the ten by over $198 or 53%.
Since sector dogs are not the blue chip high quality equivalents of the dow list, an additional gauge of upside potential was added to the simple high yield metric used to flush out initial bargains.
Actionable Conclusion (2): Wall Street Wizard Wisdom Was Weighed to Compute 30.49% Net Gain from Top 20 Dogs Come 2014
Top twenty dogs for the technology sector were graphed below to show relative strengths by dividend and price as of July 28, 2013 and those projected by analyst mean price target estimates to the same date in 2014.
A hypothetical $1000 investment in each equity was divided by the current share price to find the number of shares purchased. The shares number was then multiplied by projected annual per share dividend amounts to find the dividend return. Thereafter the analyst mean target price was used to gauge the stock upsides to 2014.
Historic prices and actual dividends paid from $1000 invested in the ten highest yielding stocks and the aggregate single share prices of those twenty stocks divided by 2 created the data points for 2013. Projections based on estimated increases in dividend amounts from $1000 invested in the twenty highest yielding stocks and aggregate one year analyst target share prices from Yahoo Finance divided by 2 created the 2014 data points green for price and blue for dividends.
Yahoo projected a 8.36% lower dividend from $10K invested in this group while aggregate single share price was projected to increase by 10.76% in the coming year. The number of analysts contributing to the mean target price estimate for each stock was noted in the last column on the charts. Three to nine analysts was considered optimal for a valid projection estimate. Estimates provided by one analyst were not applied (n/a).
Actionable Conclusion (3): Analysts Forecast 2014 Services DiviDog Stock Net Gains of 6.41% to 313.4%
Ten probable profit generating trades revealed by Yahoo Finance for 2014 were:
Partner Communications Co. (PTNR) netted $3161.82, based on dividends plus a mean target price estimates by thirteen analysts less broker fees;
Himax Technology (NASDAQ:HIMX) netted $637.09, based on dividends plus mean target price estimate from four analysts;
Windstream Corporation (WIN) netted $301.66 based on dividends plus mean target price estimate from thirteen analysts less broker fees;
STMicroelectronics NV (NYSE:STM) netted $301.47 based on dividend plus a mean target price estimate from five analysts less broker fees;
TELUS Corporation (NYSE:TU) netted $236.06 based on dividend plus a mean target price estimate from twelve analysts less broker fees;
Frontier Communications (FTR) netted $231.85 based on a mean target price estimate from fourteen analysts combined with projected annual dividend less broker fees;
Landauer Inc. (NYSE:LDR) netted $205.42 based on dividend plus a mean target price estimate from two analysts less broker fees;
American Software, Inc. (NASDAQ:AMSWA) netted $176.78 based on estimates from two analysts plus dividends less broker fees;
Intersil Corporation (ISIL) netted $105.64 based on dividends plus the mean of annual price estimates from fifteen analysts less broker fees.
The average net gain in dividend and price was 54.74% on $1k invested in each of these ten tec dogs.
The stocks listed above are suggested only as decent starting points for your sector dividend stock purchase research process. These are 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.
Disclosure: I am long DD, GE, INTC, JNJ, MCD, MSFT, PFE, T, VZ. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.