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Summary

  • Top-yield "Bad Boy All-Star" stocks from a selection of 50 notorious industry firms showed lively price upsides from 7.7% to 33.1% as of August 6 (per analyst estimates).
  • Bears bloodied top ten Bad Boy All-Star Sindex dogs (by yield) along with dogs of the Dow through July.
  • Analysts projected average 24.2% 1-yr. net gains for EROC, OCIP, SIX, UAN, BGS, GSK PSEC, FSC, TOT, and APL.
  • Consider these as starting points for your stock purchase research into "Bad Boy All-Star Sindex" stocks.

The list of fifty "Bad Boy All-Star Sindex" stocks below was created by screening for industries populated by public companies that have historically committed acts, made substances, by-products, or devices that maim, kill, tempt, harm, addict, insult, or scam the public. These included corporate members of all nine business sectors: basic materials, consumer goods, financial, technology, conglomerates, health, services, utilities, and industrial goods. Sorting and refining top stocks in each industry by yield narrowed the field to fifty from over 1000 candidates. They may be bad, but they all pay dividends,

Below, Arnold top Bad Boy All-Star Sindex dog selections for August by yield, price upsides, and net gains were disclosed step by step. Four actionable conclusions were drawn.

Actionable Conclusion (1): 10 Bad Boy All-Star Sindex Dogs Averaged 17.8% August Upsides

The chart above used one-year mean target prices set by brokerage analysts matched against August 6 closing price to compare ten Bad Boy All-Star Sindex stocks showing the highest upside price potential into 2015, 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.

Seeking Alpha reader requests prompted this series of index-specific articles reporting dividend yield plus price upside results for these indices: Dow 30; S&P 500 & Aristocrats; Russell 2000 & 1000; Nasdaq 100; Champions, Contenders, & Challengers Combined; Global. Bonus reports covered, Sindex AllStars, and Sector Leaders.

Fifty For the Money

This article revealed bargain stocks to buy and hold for at least one year. Stocks reported were termed dogs, because they were all selected based on Michael B. O'Higgins' book "Beating The Dow" (HarperCollins, 1991), which revealed how high-yielding stocks whose prices increased (and whose dividend yields therefore decreased) could be sold off once a year to sweep gains and reinvest the seed money into higher-yielding stocks in the same index, named Dogs of the Dow. O'Higgins' system works to find bargains in any collection of dividend-paying stocks. Utilizing analyst price upside estimates expanded the stock universe to include popular growth equities, if desired.

Dog Metrics Sifted Bad Boy Dividend All-Star Sindex Stocks by Yield

The Bad Boy All-Star Sindex list of fifty companies above was sorted by yield as of August 6 to reveal the top ten.

Ten Bad Boy All-Star Sindex dogs that promised the biggest dividend yields for August included firms from six of nine market sectors listed here:

Basic Materials (BasMat) included all the exploitive mining companies, toxic, corrosive and genetically manipulative chemical firms, and explosives manufacturers, to name a few.

Utilities (Utes) meant regulated monopolies that regularly provide consumers blackouts, brown-outs, traffic delays, air pollution, toxic emissions, and insipid feel-good inflated billing notices.

Financials (Fins) included money manipulating, merger and acquisition managing, crisis creating, scamming and ill-gotten gain laundering institutions and more.

Conglomerates (Gloms) were firms so diverse that there was no end to the mayhem and madness they could do.

Technology (Tec) meant wireless, cable, phone, and net service providers, addictive electronic gizmo creators and the like who enable the subversives to subliminally sway us and, as a further insult, provide abominable customer service.

Consumer goods (ConGo) firms made all the processed foods, liquids, vehicles, devices, and substances that made us fat, sick, addicted, hyper, stupid, mad, and angry.

The top stock, Sandridge Permian Trust (NYSE:PER), was one of four from the basic materials sector. The other basic materials firms, Eagle Rock Energy Partners L.P. (NASDAQ:EROC), CVR Partners L.P. (NYSE:UAN), and OCI Partners LP (NYSE:OCIP) placed third, sixth, and ninth respectively.

The balance of the top ten included one utility, Just Energy (NYSE:JE), in second place, plus two financials in fourth and fifth places: Prospect Capital Corporation (NASDAQ:PSEC) and Fifth Street Finance Corp. (NASDAQ:FSC). The remaining firms included a conglomerate, New Mountain Finance Corp. (NYSE:NMFC), in seventh place; a technology firm, Windstream Corp. (NASDAQ:WIN), in eighth place. Finally, a consumer goods firm, Vector Group (NYSE:VGR), in ninth place, completed the representation of market sectors in the Bad Boy All-Star Sindex top ten by yield.

Not represented in the top ten Bad Boy All-Star Sindex dog list were three remaining sectors:

Industrial goods (IndiGo), which included arms dealers, military contractors, equipment, hardware, nuts, bolts, and other factory-produced items of mass destruction and harm.

Healthcare (Health) included firms responsible for devising and making the prescription liquids, powders, gases, devices, and substances that make us fat, sick, addicted, hyper, stupid, mad, and angry; rarely healing.

Services (Svcs) covered all the delivery modes for the exploding, toxic, addictive, fattening, caustic, and insulting stuff.

Dividend vs. Price Results Compared to Dow Dogs

Periodic strengths of ten top Bad Boy All-Star Sindex dogs by yield was graphed below as of market closing prices through 8/6/2014, and compared to those of the Dow. Projected annual dividend history from $10,000 invested as $1k in each of the ten highest-yielding stocks and the total single share price history of those ten stocks created the data points shown in green for price and blue for dividend.

(click to enlarge)

Actionable Conclusion (2): Bad Boy All-Star Sindex & Dow Dogs Bashed By Bears into August

Bad Boy All-Star Sindex top ten dividend payers retreated from bears in July, as dividend from $1k invested in each jumped up, while aggregate single share price of those ten dropped. The top ten Bad Boy All-Star Sindex dog dividend popped 6.3%, while price fell 1.7%.

Meanwhile, Dow dogs also retreated by showing bigger annual dividend from $10k invested as $1K in each of the top ten ascending 3.7% in July, while aggregate single share price dropped 3.3%.

As a result, the Dow dogs' overbought condition (in which aggregate single share price of the ten exceeded projected annual dividend from $10k invested as $1k each in those ten) declined from its new high. The overhang was $145, or 38%, for January; retreated to $125, or 33%, in February; swelled to $149, or 40%, in March; expanded to $173, or 47%, in April; shrank to $170, or 46%, come May; swelled to $215, or 59%, for July; then fell back to $183, or 49%, in August.

To quantify top dog rankings, analyst mean price target estimates provide a "market sentiment" gauge of upside potential. Added to the simple high-yield "dog" metric, analyst mean price target estimates provided another tool to dig out bargains.

Actionable Conclusion (3): Wall St. Wizards Warn Of 16.6% Net Gain from 20 Bad Boy All-Star Sindex Dogs Into August 2015

Twenty top dogs of the Bad Boy All-Star Sindex were graphed below as of August 6, 2014, compared to analyst mean price target estimates for the same date in 2015.

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 price upsides and net gains including dividends less broker fees as of 2015.

Historical prices and actual dividends paid from $20,000 invested as $1k in each of the highest-yielding stocks and the aggregate single share prices of those twenty stocks divided by 2 created data points for 2014. Projections based on estimated increases in dividend amounts from $1000 invested in the twenty highest-yielding super sin stocks and aggregate one-year analyst target share prices from Yahoo Finance divided by 2 created the 2015 data points green for price and blue for dividend.

(click to enlarge)

Yahoo projected 8% lower dividend from $20K invested as $1k in each stock in this group, while aggregate single share price was projected to increase nearly 12% 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 estimate.

A beta (risk) ranking for each analyst-rated 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): Analysts Assess Bad Boy All-Star Sindex Top Ten Dogs to Net 15.9% to 45% By August 2015

Five of the ten top dividend-yielding Bad Boy All-Star Sindex dogs were verified as being among the ten net gainers for the coming year, based on analyst 1-year target prices. So this month, the dividend dog strategy as graded by Wall St. wizards was 50% accurate for the Bad Boy All-Star Sindex top ten.

The ten probable profit-generating trades revealed by Yahoo Finance for 2015 were:

Eagle Rock Energy Partners L.P. netted $449.91, based on a mean target price estimate from two analysts, combined with projected annual dividend less broker fees. The Beta number showed this estimate subject to volatility 28% less than the market as a whole.

OCI Partners LP netted $305.84, based on a mean target price estimate from four analysts, combined with projected annual dividend less broker fees. A Beta number was not available for OCIP.

Six Flags Entertainment (NYSE:SIX) netted $289.63, based on a mean target price estimate from five analysts, combined with projected annual dividend less broker fees. The Beta number showed this estimate subject to volatility 85% more than the market as a whole.

CVR Partners L.P. netted $280.80, based on dividends plus mean target price estimate from three analysts less broker fees. The Beta number showed this estimate subject to volatility 18% less than the market as a whole.

B&G Foods (NYSE:BGS) netted $211.65, based on a mean target price estimate from five analysts, combined with projected annual dividend less broker fees. The Beta number showed this estimate subject to volatility 36% greater than the market as a whole.

GlaxoSmithKline PLC (NYSE:GSK) netted $202.47, based on a mean target price estimate from three analysts, combined with projected annual dividend less broker fees. The Beta number showed this estimate subject to volatility 35% less than the market as a whole.

Prospect Capital Corporation netted $187.51, based on dividends plus a mean target price estimate from nine analysts less broker fees. The Beta number showed this estimate subject to volatility 17% less than the market as a whole.

Fifth Street Finance netted $169.50, based on dividends plus mean target price estimate from thirteen analysts less broker fees. The Beta number showed this estimate subject to volatility 32% less than the market as a whole.

Total S.A. (NYSE:TOT) netted $160.33, based on a mean target price estimate from six analysts, combined with projected annual dividend less broker fees. The Beta number showed this estimate subject to volatility 35% more than the market as a whole.

Atlas Pipeline Partners LP (NYSE:APL) netted $158.86, based on dividends plus a mean target price estimate from nine analysts less broker fees. The Beta number showed this estimate subject to volatility 17% less than the market as a whole.

The average net gain in dividend and price was nearly 24.2% on $10k invested as $1k in each of these ten dogs. This gain estimate was subject to average volatility 1% more than the market as a whole.

The net gain 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.

The stocks listed above were suggested only as possible starting points for your Bad Boy All-Star Sindex dog dividend stock 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 http://dividend.com; verified by www.finance.yahoo.com; analyst mean target price by Thomson/First Call in Yahoo Finance.

Disclosure: The author is long FSC, CSCO, GE, INTC, MSFT, PFE, T, VZ. The author wrote this article themselves, and it expresses their own opinions. The author is not receiving compensation for it (other than from Seeking Alpha). The author has no business relationship with any company whose stock is mentioned in this article.

Source: 10 Bad Boy All-Star Dividend Dogs Stalk 17.8% August Upsides