50 Financial-Services Yields Range 7.21% To 15.09%, Per Late March Data
Summary
- Five top net gain financial sector firms CMFN, FDUS, GARS, BX, & MRCC averaged 40% estimated net gains (per analyst 1-year targets) as of 3/29/18.
- The financial services sector has twenty component industries. Top 50 firms selected by yield for this writing represented just 12 of those industries. 72% were asset management firms.
- Those 50 top Financial Services stocks ranged in yield from 7.21% to 15.09%. Top ten, BKCC, TPVG, FDUS, OFS, CFMN, AB, OXSQ, GARS, TCRD & PZN, averaged 12.88%.
- Top ten Financial Services by broker target upsides, AINV, SCM, TCPC, TCRD,GARS, OFS, MRCC, BX, FDUS & CMFN, averaged 26.69% annual estimated price gains.
- $5k invested in the lowest-priced five March/April top-yield Financial Services stocks showed 35.49% more net gain than from $5k invested in all ten. The low priced little Financial Services stocks were top notch.
Actionable Conclusions (1-10): Analysts Predicted 30% To 44% Net Gains For Ten Financial Services Stocks To March/April 2019
Five of ten top dividend-yielding Financial Services stocks were verified as being among the top ten gainers for the coming year based on analyst 1-year target prices. (Those names are tinted in the chart above). Thus, this yield-based forecast for the Financial Services was graded by Wall St. wizards as 50% accurate.
Ten probable profit-generating trades were revealed in YCharts from broker targets for March/April 2019. A hypothetical $1,000 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 median target price gauged the stock price upsides and net gains including dividends, less broker fees, for 2019.
CM Finance (CMFN) was projected to net $443.41, based on dividends, plus a mean target price estimate from two analysts, less broker fees. The Beta number showed this estimate subject to volatility 13% more than the market as a whole.
Fidus Investment (FDUS) was projected to net $413.23 based on a median target price estimate from five analysts, plus dividends, less broker fees. The Beta number showed this estimate subject to volatility equal to the market as a whole.
Garrison Capital (GARS) was projected to net $386.40, based on dividends, plus a median target price estimate from seven analysts, less broker fees. The Beta number showed this estimate subject to volatility 82% less than the market as a whole.
Blackstone Group (BX) was projected to net $379.06, based on dividends, plus a mean target price estimate from fourteen analysts, less broker fees. The Beta number showed this estimate subject to volatility 36% more than the market as a whole.
Monroe Capital (MRCC) was projected to net $378.37, based on target price estimates from eight analysts, plus annual dividend, less broker fees. The Beta number showed this estimate subject to volatility 46% less than the market as a whole.
OFS Capital (OFS) was projected to net $375.72, based on median target estimates from three analysts, plus dividends, less broker fees. The Beta number showed this estimate subject to volatility 57% less than the market as a whole.
THL Credit (TCRD) was projected to net $367.39, based on dividends, plus mean target price estimates from nine analysts, less broker fees. The Beta number showed this estimate subject to volatility 5% more than the market as a whole.
Stellus Capital Investment (SCM) was projected to net $310.46, based on dividends plus a median target estimate from five brokers, less broker fees. The Beta number showed this estimate subject to volatility 48% less than the market as a whole.
TCP Capital (TCPC) was projected to net $304.89, based on a median target price estimate from nine analysts plus the projected annual dividend, less broker fees. The Beta number showed this estimate subject to volatility 33% under the market as a whole.
Apollo Investment (AINV) netted $301.84 based on mean target price estimates from twelve analysts plus dividends, less broker fees. The Beta number showed this estimate subject to volatility 9% less than the market as a whole.
The average net gain in dividend and price was estimated at 36.48% on $10k invested as $1k in each of these ten stocks. This gain estimate was subject to average volatility 22% less than the market as a whole.
Top 50 Financial Services Dogs By Yield Represented 12 of 20 Sector Industries
Yield (dividend / price) results from YCharts March 29 verified by YahooFinance for fifty stocks from 12 of 20 sector Industries revealed the actionable conclusions in this article.
The Dividend Dogs Rule
Stocks earned the "dog" moniker by exhibiting 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/April Financial Services Sector Stocks By Yield
Actionable Conclusions (11-20): Yield Metrics Identified 10 Top Financial Services Stocks
Top ten Financial Services stocks selected 3/29/18 showing top yields represented one of twenty constituent industries.
The top yielding Financial Services stock, was an asset management firm just like the other nine: Pzena Investment Management (PZN) [1]. The others were, THL Credit (TCRD) [2]; Garrison Capital (GARS) [3]; Oxford Square Capital (OXSQ) [4]; AllianceBernstein Holding (AB) [5]; CM Finance (CMFN) [6]; OFS Capital (OFS) [7]; Fidus Investment (FDUS) [8]; TriplePoint Venture Growth (TPVG) [9]; BlackRock Capital (BKCC) [10], to complete the ten March/April Financial Services top ten stocks by yield.
Actionable Conclusions (21-30): Financial Services Showed 20.69% To 34.15% Top Ten Price Upsides To March/April, 2019, And (31) A Single Downside Of -5.07%
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" metrics, analyst mean price target estimates became another tool to dig out bargains.
Analysts Forecast A 35.49% Advantage For 5 Highest Yield, Lowest Priced Financials To March/April, 2019
Ten top Financial Services equities were sorted by yield for their monthly update. Yield (dividend / price) results verified by YCharts did the ranking.
As noted above, top ten Financial Services dogs selected 3/29/18 showing the highest dividend yields represented one of twenty industries constituting the sector.
Actionable Conclusions: Analysts Predicted 5 Lowest-Priced of the Top Ten Highest-Yield Financial Services Dogs Will (33) Deliver 36.75% Vs. (34) 27.12% Net Gains From All Ten by March/April, 2019
$5000 invested as $1k in each of the five lowest-priced stocks in the top ten dividend Financial Services kennel by yield were predicted by analyst 1-year targets to deliver 35.49% more net gain than $5,000 invested as $.5k in all of those ten. The fifth lowest priced Financial Services top yield stock, Garrison Capital (GARS), was projected to deliver the best net gain of 44.34%.
The five lowest-priced Financial Services top yield stocks as of March 29 were: BlackRock Capital (BKCC); Oxford Square Capital (OXSQ); THL Credit (TCRD); Garrison Capital (GARS); CM Finance (CMFN), with prices ranging from $6.03 to $8.20.
Five higher-priced Financial Services as of March 29 were: Pzena Investment Management (PZN); OFS Capital (OFS); TriplePoint Venture Growth (TPVG); Fidus Investment (FDUS); AllianceBernstein Holding (AB), whose prices ranged from $11.13 to $26.85.
The distinction between five low-priced dividend stocks 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 Financial 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. Dog photo: greyhoundrescue.com.au
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Yet always remember: Root for the Underdog.
This article was written by
Analyst’s Disclosure: I am/we are long HALL, FAS, PIH. 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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