S&P Aristocrats June Upside Dogs
S&P 500 Aristocrats prices were tallied as of market close on June 16. Yield (dividend / price) results from yahoo.com/finance for 30 top yielding S&P 500 Aristocrats stocks stacked against analyst 1-yr target projections led to five actionable conclusions discussed below.
Actionable Conclusions: (1) 10 Leading Aristocrat Dogs Showed 12.35% Average Upsides; (2) 1 Loser Aristo Declined 12.9% Per June 2016 Analyst Targets
The number of analysts providing price estimates was noted after the name of 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 dividend yield plus price upside results for these indices: Dow 30; S&P 500; S&P Aristocrats; Russell 1000; Russell 2000; Russell Combined; NASDAQ 100; Champions; Contenders; Challengers; CCC Combined; Global. Bonus reports cover Bad Boy AllStars, and Sector Leader.
Fifty-four For the Money
This article was written to reveal bargain stocks to buy and hold up to one full year. See Dow 30 article for explanation of the term "dogs" for stocks reported based on Michael B. O'Higgins book "Beating The Dow" (HarperCollins, 1991), now 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, as desired.
Dog Metrics Graded 54 S&P Aristocrats
McGraw Hill, publisher if this index, states:
"The S&P 500® Dividend Aristocrats index measures the performance of large cap, blue chip companies within the S&P 500 that have followed a policy of increasing dividends every year for at least 25 consecutive years."
Actionable Conclusion (3): Wall St. Wizards Predicted A 7.04% Average 1 yr. Upside for Top 30 S&P Aristocrats Dogs by June 16, 2016
Top 30 dogs on the S&P Aristocrats index stock list graphed below show relative strengths by dividend and price as of June 16, 2015 and those projected by analyst mean price target estimates to the same date in 2016.
A hypothetical $1000 investment in each equity was divided by the current share price to find the number of shares purchased. The number of shares was then multiplied by projected annual dividend amounts to find the dividend return. Thereafter the analyst mean target price was used to gauge each stock's upside to 2016.
Historic prices and actual dividends paid from $1000 invested in each of the highest yielding stocks and the aggregate single share prices of those thirty stocks divided by 3 created the data points for 2015. Projections based on estimated increases in dividend amounts from $1000 invested in the thirty highest yielding stocks and aggregate one-year analyst target share prices from Yahoo Finance divided by 3 created the 2016 data points on the chart below: green for price and blue for dividend.
Yahoo reported Thomson/First Call analyst survey numbers predicting a 6.3% lower dividend from $10K invested as $1k in the average ten of this group, while aggregate single share price of those ten was predicted to increase 7.6% in the coming year.
Actionable Conclusion (4): Analysts Allege Ten Top S&P 500 Aristocrats Dividend Dog Price Upsides Of 10.07% to 15.45% by June 2016
PepsiCo Inc. (NYSE:PEP) was estimated to achieve 15.45% upside based on target prices from twenty analysts.
Chevron Corporation (NYSE:CVX) was estimated to make 14.95% upside based on target price projections from nineteen analysts.
Coca-Cola Co (NYSE:KO) was estimated to make 13.52% upside based target prices from eighteen analysts.
Genuine Parts Co. (NYSE:GPC) was estimated to achieve 12.32% upside based on target price projections from nine analysts.
Nucor Corp. (NYSE:NUE) was estimated to see 12.29% upside based on target prices from seventeen analysts.
Johnson & Johnson (NYSE:JNJ) was estimated to make 11.99% upside based on target prices from fourteen analysts.
Wal-Mart Stores (NYSE:WMT) was estimated to achieve 11.26% upside based on target prices from twenty-two analysts.
Procter & Gamble (NYSE:PG) was estimated to make 11.25% upside based on target prices from seventeen analysts.
T Rowe Price Group Inc. (NASDAQ:TROW) was estimated to see 10.43% upside based on target prices from seventeen analysts.
Sysco Corp. (NYSE:SYY) was estimated to achieve 10.07% upside based on target prices from nine analysts.
The average per share price upside estimate was 12.35% on an investment in each of these ten dogs.
Actionable Conclusion (5): (Bear Alert) Analysts Saw One Aristocrat DiviDog Dropping Down 12.9% In Price By June 2016
A probable losing trade revealed by analysts reported by Thomson/First Call in Yahoo Finance into 2016 was:
Leggett & Platt (NYSE:LEG) was projected to drop 12.9% based on target prices from three analysts.
Stocks listed above were suggested only as possible starting points for your June S&P 500 Aristocrats index dog dividend stock purchase/sale research. 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.
Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
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.