- Top Telecom gains split. Overseas firms took the top this month as North American telcos dropped in analyst 1yr. targeting.
- Eight of top-ten net-gain Communications Services hailed from overseas (VEON, CHL, TKC, BZQIY, TLSYY, ROSYY, TLKGY, & STTFY). Their top 2 averaged 67.38%; 2 No.Americans, BCE, & T, averaged 21.4%.
- Top six price upsides ranging 6%-66% were posted by MBT, CTL, BCE, VOD, CHL, & VEON, averaging 30.3% per 1yr. broker targets.
- 50 top Communication Services stocks ranged in yield from 4.38% to 12.55%. Top ten, RNRTY, MBT, HKTTY, ROSYY, TEO, NZTCF, TTRAF, BZQIY, CTL & VEON, averaged 8.98% yield.
- $5k invested in the lowest-priced five March top-yield Communication Services stocks showed 37.6% more net gain than from $5k invested in all ten. Low price little dogs survived to lead communication services in March.
Actionable Conclusion (1-10): Analysts Projected 5.95% To 76.6% Net Gains From Top Ten Communication Services Stocks To 2019
Seven of ten top gaining Comm Services stocks, based on analyst 1-year target prices, were in the top ten dividend-yielders for the coming year (as tinted in the chart above). Thus, the yield-based forecast for Communications Services, as graded by Wall St. wizards, was 70% accurate.
Projections based on estimated dividends from $1000 invested in the thirty highest yielding stocks and their aggregate one year analyst median target prices, as reported by YCharts, created the 2018-19 data points. Note: one year target prices by lone analysts were not applied. Ten probable profit-generating trades projected to March, 2019 were:
VEON (VEON) was projected to net $765.98, based on dividends, plus mean target price estimates from seventeen analysts, less broker fees. The Beta number showed this estimate subject to volatility 115% more than the market as a whole.
China Mobile (CHL) was projected to net $581.22, based on dividends, plus median target price estimates from three analysts, less broker fees. The Beta number showed this estimate subject to volatility 49% less than the market as a whole.
Vodafone Group (VOD) was projected to net $310.32, based on median target price estimates from three analysts, plus projected annual dividend, less broker fees. The Beta number showed this estimate subject to volatility 53% more than the market as a whole.
BCE Inc. (BCE) netted $214.59 based on dividends plus the median from price estimates by twenty-two analysts, less broker fees. The Beta number showed this estimate subject to volatility 21% less than the market as a whole.
CenturyLink (CTL) was projected to net $213.78, based on a median target price estimate from eighteen analysts, plus projected annual dividend, less broker fees. The Beta number showed this estimate subject to volatility 21% less than the market as a whole.
Mobile Telesystems (MBT) was projected to net $114.01, based on a median target price estimate from nineteen analysts, plus projected annual dividend, less The Beta number showed this estimate subject to volatility 4% more than the market as a whole.
Bezeq The Israeli Teleco (OTCPK:BZQIY) was projected to net $80.59 based on dividends only, less broker fees, with no target price estimates from analysts. The Beta number showed this estimate subject to volatility 11% less than the market as a whole.
Telstra (TLSYY) was projected to net $72.89, based on dividends, less broker fees. The Beta number showed this estimate subject to volatility 22% less than the market as a whole.
Rostelecom (OTC:ROSYY) was projected to net $57.32, based on no target price estimate from analysts, just projected annual dividend, less broker fees. The Beta number showed this estimate subject to volatility 51% more than the market as a whole.
Spark New Zealand (OTCPK:NZTCF) was projected to net $59.52, based on dividends, less broker fees. The Beta number showed this estimate subject to volatility 35% less than the market as a whole.
Average net gain in dividend and price was estimated at 24.7% on $10k invested as $1k in each of these ten stocks. This gain estimate was subject to average volatility 2% more than the market as a whole.
Top 50 Communication Services By Yield Represented Only The Telecom Industry In January
Yield (dividend / price) results from YCharts March 7, verified by YahooFinance, showed fifty stocks from just one of two Communication Services sector Industries producing the actionable conclusions for this article. The Pay TV industry was not represented.
The Dividend Dogs Rule
Stocks earning the "dog" moniker exhibited 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".
Top 50 March Communication Services Equities By Yield
Actionable Conclusion (11-20) Yield Metrics Selected 10 Top Communication Services Stocks
Top ten Comm Services stocks selected 3/7/18 with top yields represented one of two industries constituting the sector: (1) telecom services [10 listed]; (2) pay tv [0 listed].
Top yield communication services stock, VEON (VEON) , was followed by CenturyLink (CTL), then by Bezeq The Israeli Teleco (OTCPK:BZQIY) ; Telstra (OTCPK:TTRAF) ; Spark New Zealand (OTCPK:NZTCF) ; Telkom Argentina (TEO) ; Rostelecom (OTC:ROSYY) ; HKT Trust and HKT (OTCPK:HKTTY) ; Mobile Telesystems (MBT) ; Reunert (OTCPK:RNRTY) , to complete the roster of top ten March Communication Services top stocks by yield.
Actionable Conclusions (21-26): Six Communication Services Stocks Showed 7% To 30.3% Upsides To March, 2019
To quantify top rankings, analyst median price target estimates provide a "market sentiment" gauge of upside potential. Added to the simple high-yield metrics, analyst mean price target estimates became another tool to dig out bargains.
Analysts Forecast A 37.6% Advantage For 5 Highest Yield, Lowest Priced Communication Services Stocks To March, 2019
Ten top Communication Services stocks were culled by yield for their monthly update. Yield (dividend / price) results verified by YCharts did the ranking.
As noted above, ten top Comm Services stocks selected 3/7/18 showing the highest dividend yields represented one industry in the two industry sector scheme.
Actionable Conclusions: Analysts Predicted 5 Lowest-Priced of the Top Ten Highest-Yield Comm Services Dogs (27) Delivering 20.73% Vs. (28) 15.06% Net Gains by All Ten by March, 2019
$5000 invested as $1k in each of the five lowest-priced stocks in the top ten Communication Services collection by yield were predicted by analyst 1-year targets to deliver 37.6% more net gain than $5,000 invested as $.5k in each of all ten. The third lowest priced Communication Services top-ten yield stock, VEON (VEON), was projected to deliver the best net gain of 76.6%.
The five lowest-priced Communications Services top yield stocks for March 7 were: Spark New Zealand (OTCPK:NZTCF); Telstra (OTCPK:TTRAF); VEON (VEON); Rostelecom (OTC:ROSYY); Bezeq The Israeli Teleco (OTCPK:BZQIY), with prices ranging from $2.60 to $7.27.
Five higher-priced Communications Services stocks for March 7 were: Mobile Telesystems (MBT); CenturyLink (CTL); Reunert (OTCPK:RNRTY); HKT Trust and HKT (OTCPK:HKTTY); Telkom Argentina (TEO), whose prices ranged from $11.98 to $33.33.
The distinction between the 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 80% accurate on the direction of change and just 0% to 20% accurate on the degree of change.
See my instablog for specific instructions about how to best apply the dividend dog data featured in this article, this glossary instablog to interpret my abbreviated headings, and this instablog to aid your safe investing. --Fredrik Arnold
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.
Stocks listed above were suggested only as possible reference points for your Communication Services stock 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 or YCharts. Dog photo: telecomtv.com
Editor's Note: This article discusses one or more securities that do not trade on a major U.S. exchange. Please be aware of the risks associated with these stocks.
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Analyst’s Disclosure: I am/we are long T. 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.
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