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This weekly report tallied yield (dividend / price) results from here verified by Yahoo Finance for monthly dividend paying small, mid, & large cap (MoPaySML) stocks as of market closing prices November 28 compared to those results for the top ten dogs of the Dow.

Actionable Conclusion (1): MoPay Dogs Bearish; Dow Dogs Bullish Last Week

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MoPaySML dividend dogs faltered after November 28. Aggregate dividend from $10k invested as $1k in each of the top ten stocks swelled at a rate of 4.5% since Thanksgiving while total single share price of those ten shrunk nearly 2.7% for the period.

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The Dow dogs, meanwhile, projected annual dividend from $10k invested, as $1K in each of the top ten Dow dogs declined over 1.7% since November 28, while aggregate single share price inclined over 2%. The Dow dogs overbought condition in which aggregate single share price of the ten exceeded projected annual dividend from $10k invested in those ten (@$1k each) swelled. The overhang was $161 or 43% for September; shrank down to $111 or 30% for October; expanded to $171 or 47'% November 11; backed off to $127 or 34% November 20; shrank again to $108 or 29% to end November; grew to $125 or 33.7% to start December. Some of the recent bull chase was triggered by Coca-Cola Co. (NYSE:KO) replacing Microsoft (NASDAQ:MSFT) in the top ten Dow dogs to start December.

Monthly Pay Dividend Pros, Cons & Conclusions

Monthly pay dividend dog stock lists reviewed since June 2012 prompted reader suggestions to include funds, trusts, and partnerships. This report on small, mid, and large cap only monthly pay stocks only was prepared in response to Seeking Alpha editors plus August, September, October, and November reader input. Three additional actionable conclusions were drawn and a surprising look back at MoPay April dogs concluded this article.

Pros and Cons

Quarterly, Semi-Annual and Annual dividend stockholders anxiously await announcements from a firm, fund, or analyst to learn if their next dividend will be higher, lower, or paid at all. Monthly pay stocks, funds, trusts, and partnerships inform the holder every four and one third weeks by check and/or statement. If the entity reduces or suspends a payment, the holder can sell out of the investment immediately to cut future losses. This advantage has been countered when companies suddenly cut monthly dividends to save cash and trigger a price crash. So the segment is volatile.

Readers have added fuel. TennisBoy88 wrote:

...Monthly paying stocks...are slightly protected against traders that buy just before the ex-date and sell after the record date. The brokerage commissions they have to pay for a measly monthly dividend helps keep them away and the stock price doesn't fluctuate so wildly.

Reader drking pointed to another advantage of receiving 12 vs. 4 dividends per year:

Mopay dividends reinvested will return almost 1% more yearly than quarterly payers as it compounds faster.

Many readers were offended by the term "dividend" applied to REITs, MLPs and hybrid financial institutions. For example, arbtrdr wrote:

The only problem with this analysis is you are comparing companies of VERY different varieties. REITs pay no taxes and their distributions are classified as ordinary income, and thus not subject to the 15% or 20% tax rate. MLPs also pay little no taxes at the corporate level, but instead have "distributions"... Comparing REITs, MLPs and regular corporations thus requires a financial analysis...not include[d].

Dogs of the Index Metrics Extracted Bargains

For this article, thirty small, mid, and large cap dividend equities were culled from over 650 entities listed here paying monthly returns. This report presumed yield (dividend / price) dividend dog methodology applied to any dividend stock group and compared that collection side by side with the Dow industrial index leaders. Below, the Arnold MoPaySML selections for December 10 were disclosed step by step.

December 10 Monthly Pay Small. Mid, & Large Cap Dividend Stocks

Ten monthly pay S/M/L Cap dividend equities showing the best yields for December 10 represented the usual three of nine Yahoo market sectors. The top dog stock revealed by Yahoo Finance data was again Armour Residential REIT (NYSE:ARR). This was one of three financial sector firms that populated the list. The remaining two financial MoPaySML dogs placed fourth, and sixth: Fifth Street Finance (NASDAQ:FSC), and Prospect Capital Corporation (NASDAQ:PSEC).

The second and third slots in the top ten were filled by two of five basic Materials concerns: Enduro Royalty Trust (NYSE:NDRO), and Pacific Coast Oil Trust (NYSE:ROYT). The others placed eighth through tenth: Linn Energy LLC; (NASDAQ:LINE); LinnCo LLC (NASDAQ:LNCO), and Vanguard Natural Resources, LLC (NASDAQ:VNR). Two utilities, Atlantic Power Corp (NYSE:AT), and Just Energy Group Inc. (NYSE:JE), placed fifth and seventh to round out the MoPaySML top dog list.

To quantify the top dog rankings, analyst mean price target estimates provided a "market sentiment" gauge of upside potential, and so were added to the simple high yield "dog" metric used to sniff out bargains.

Wall Street Wizard Weighting

One year mean target price set by brokerage analysts multiplied by the number of shares in a $1k investment were used to compare ten 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 was considered optimal for a valid mean target price estimate.

Actionable Conclusion (2) 10 MoPaySML Dividend Dogs Track 12% to 44% Upsides

Top 20 dogs on the MoPay stock list were graphed below to show relative strengths by dividend and price as of December 10, 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 each of 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.

Actionable Conclusion (3): Wall Street Wizards Wisdom Wished Over 20% 1 yr. Net Gain from Top 20 MoPay SML Dogs

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Yahoo projected over 14% lower dividend from $10K invested as $1k in each of this group of ten while aggregate single share price was projected to increase by nearly 13% in the coming year. The number of analysts contributing to the mean target price estimate for each stock was noted in the next to 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).

A beta (risk) ranking for each stock was provided in the far right column on the above chart. A beta of 1 meant the stock's price would move with the market. Less than 1 showed lower than market movement. Higher than 1 showed greater than market movement. A negative beta number indicated the degree of a stock price movement opposite of market direction.

Actionable Conclusion (4): Wall St. Analysts Forecast 2014 MoPaySML Dog Stock Net Gains of 19% to 54%

Seven of the ten top dividend yielding MoPaySML dogs were verified as being among the ten gainers out of 20 for the coming year based on analyst 1 year target prices. So this week the dog strategy for this collection as graded by Wall St. wizards was again 70% accurate.

Ten probable profit generating trades were revealed by Thompson/First Call in Yahoo Finance for 2014:

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Atlantic Power Corp netted $538.07 based on estimates from five analysts plus dividends less broker fees. The Beta number showed this estimate subject to volatility 65% less than the market as a whole.

Enduro Royalty Trust netted $493.18 based on dividends plus mean target price estimate from four analysts less broker fees. The Beta number showed this estimate subject to volatility 2% less than the market as a whole.

Pacific Coast Oil Trust netted $420.98 based on dividends plus a mean target price estimate from three analysts less broker fees. A Beta number was not available for ROYT.

Armour Residential REIT netted $354.03 based on estimates from nine analysts plus dividends less broker fees. A Beta number was also not available for ARR.

Baytex Energy Corp (NYSE:BTE) netted $347.18 based on a mean target price estimate from eleven analysts combined with projected annual dividend less broker fees. The Beta number showed this estimate subject to volatility 84% greater than the market as a whole.

American Realty Capital (NASDAQ:ARCP) netted $323.93 based on dividends plus the mean of annual price estimates from four analysts less broker fees. The Beta number showed this estimate subject to volatility 10% opposite the market as a whole.

Linn Co., LLC netted $264.16, based on dividend plus mean target price estimates from nine analysts less broker fees. A Beta number was also not available for LNCO.

Fifth Street Finance Corporation netted $245.08, based on dividend plus mean target price estimates from ten analysts less broker fees. The Beta number showed this estimate subject to volatility 21% less than the market as a whole.

Linn Energy, LLC netted $194.21 based on dividends plus the mean of annual price estimates from thirteen analysts less broker fees. The Beta number showed this estimate subject to volatility 25% less than the market as a whole.

Home Loan Servicing Solutions Ltd. (NASDAQ:HLSS) netted $188.92 based on a mean target price estimate from eight analysts combined with projected annual dividend less broker fees. A Beta number was also not available for HLSS.

The average net gain in dividend and price was 33.7% on $10k invested as $1k in each of these ten mopay dogs. This gain estimate was subject to average volatility 23% less than the market as a whole.

A Look Back: Were Analyst Forecasts Achieved?

As of December 10, MoPay stocks from April contrasted to their analyst annual net gain projections as follows:

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Gold Resource Corporation (NYSEMKT:GORO) netted a loss of $462.17 in dividends and price including $20 in broker fees as of December. It needed nearly $1,358 more to meet the analyst April goal of netting $896.07, based on dividend plus mean target price estimates from two analysts less broker fees. Analysts December 1yr. mean target price is pegged $6 lower than that for April. Which means Gold Resource price will grow at a lower and slower trajectory than analysts projected in April.

Baytex Energy Corp netted $81.47 in dividends and price less broker fees between April and December. It needed nearly $376 more to meet the analyst April goal of netting $457.60, based on dividend plus mean target price estimates from ten analysts less broker fees.

Pengrowth Energy (NYSE:PGH) netted $381.92 in dividends and price less broker fees as of December. It was ahead of the analyst estimated trajectory needing only about $64 more to meet the April goal of netting $445.52, based on dividend plus mean target price estimates from six analysts less broker fees

Enerplus Corp. (NYSE:ERF) netted $458.02 in dividends and price less broker fees as of December. It was $69 beyond the April goal of netting $389.06, based on dividends plus mean target price estimate from seven analysts including $20 deducted for broker fees.

Atlantic Power Corporation netted a loss of $297.98 in dividends and price including $20 in broker fees as of December. It needed over $680 more to meet the analyst April goal of netting $382.17, based on dividend plus mean target price estimates from two analysts less broker fees. Analysts December 1yr. mean target price is pegged $.16 below the purchase price in April. Which means Atlantic Power price will show a declining trajectory opposed to what analysts projected in April.

Horizon Technology (NASDAQ:HRZN) netted $58.96 in dividends and price including $20 in broker fees as of December. Lagging the analysts trajectory, HRZN needed nearly $128 more to meet the analyst April goal of netting $186.92, based on dividend plus mean target price estimates from five analysts less broker fees.

Armour Residential REIT netted a loss of $336.18 in dividends and price including broker fees as of December. It needed over $540 more to meet the April goal of netting $204.14 based on dividends plus mean target price estimate from three analysts less broker fees. Analysts December 1yr. mean target price is pegged almost $2 below the ARR April buy price. Which means ARR would now show a declining trajectory opposed to what analysts projected in April.

Gladstone Investment (NASDAQ:GAIN) netted $66.46 in dividends and price less broker fees as of December. It was slightly behind the analyst April trendline and had to make about $90 to meet the April goal of netting $156.47 based on estimates from two analysts plus dividends less $20 in broker fees.

Vanguard Natural Resources netted $.74 in dividends and negative price upside help including $20 in broker fees as of December. It was well behind the April goal of netting $148.14, based on dividends plus mean target price estimate from eleven analysts including $20 deducted for broker fees.

Prospect Capital Corporation netted $100.86 in dividends and price less $20 in broker fees as of December. It was within $65 of making the April goal of netting $47.46, based on dividends plus mean target price estimate from four analysts including $20 deducted for broker fees.

As of December 10, 2014 the average net gain was .521% on $10k invested as $1k in each of these ten equities. This contrasts to an average net gain in dividend and price projected by analysts by April of 34.31%. Six of this group of ten mopay dogs was on track to meet or surpass analyst forecasts by April.

The ability of Analyst 1 yr mean target price projections to forecast performance is not fool proof. As of December the April 1 yr target forecasts in the mopay dogs were roughly 60% accurate. The final examination for this issue will be taken in April 2014. Stay tuned.

The stocks listed above were suggested only as decent starting points for a sector dog dividend stock purchase research process in April and December 2013. These were not recommendations.

Gains as reported do not factor-in any tax problems resulting from distributions. Consult your tax advisor regarding the source of "dividends" from any investment.

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.

Source: Dow Dogs Fly As MoPaySML Dogs Flop To Open December