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S&P 500 'Safer' Dividend Stock Yield Leaders Are Welltower, Ventas, & Ford For May

May 06, 2018 3:55 PM ETETN, F, IP, IVZ, LEG, MET, O, PEP, PFG, PM, PRU, QCOM, SPG, STX, VTR, VZ, WELL3 Comments


  • 46 of 114 S&P 500 Index top-yield dividend stocks were labeled as "safer" for dividends because they showed positive one-year returns, and free cash-flow yields greater than their dividend-yields 5/3/18.
  • Broker target-estimated top-ten net 'safer' dividend gains from ETN, PEP, IP, MET, PFG, PRU, QCOM, IVZ, LEG, & topped by PM, ranged 21.22%-36.34%.
  • Top 10 "safer" dividend S&P 500 yields ranged 4.29% to 6.27% from IVZ; STX; SPG; QCOM; VZ; O; PM; F; VTR; WELL Their free cash flow yields ranged 4.97%-22.67%.
  • Besides safety margin, S&P 500 Index dividend stocks also reported payout ratios, total annual returns, dividend growth, and p/e ratios, to confirm their dividend support. The list of 114 shrank to 82 by scrubbing stocks with negative annual returns.
  • Analyst one-year targets revealed that ten highest yield "safer" dividend S&P 500 Index stockholders could get a 14.32% gain by investing $5k in the lowest priced five, rather than putting $5K in all ten. Little low price dogs took the lead in the S&P 500 May chase.

Actionable Conclusions (1-10): Brokers Estimate Top Ten 'Safer' Dividend S&P500 Stocks May Net 21.2% to 36.34% Gains By May, 2019

Three of the ten tops-by-yield 'safer' Dividend S&P 500 (tinted in the chart above) were among the top ten gainers for the coming year based on analyst 1 year target prices. Thus, the dog strategy for this group, as graded by analyst estimates for this month, proved 30% accurate.

Projections based on estimated dividend returns from $1000 invested in each of 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. The ten probable profit-generating trades projected to May 3, 2019 by that reckoning were:

Philip Morris International (PM) netted $363.39, based on dividends plus a target price estimate from eighteen analysts, minus broker fees. The Beta number showed this estimate subject to volatility 12% less than the market as a whole.

Leggett & Platt (LEG) netted $315.80 based on a median target price set by eight analysts, plus estimated dividends less broker fees. The Beta number showed this estimate subject to volatility 11% less than the market as a whole.

Invesco (IVZ) netted $299.74 based on estimates from seventeen analysts plus dividends less broker fees. The Beta number showed this estimate subject to volatility 70% more than the market as a whole.

Qualcomm (QCOM) netted $295.44, based on dividends plus a median target price estimate from twenty-five analysts, less broker fees. The Beta number showed this estimate subject to volatility 47% more than the market as a whole.

Prudential Financial (PRU) netted $283.28 based on a median target price estimate from nineteen analysts, plus projected annual dividends less broker fees. The Beta number showed this estimate subject

Two or more of these "Safe" Dividend S&P 500 Index dividend pups qualified as a valuable catches! They could help make investing fun again! Look for where they might reside among the 52 Dogs of the Week (DOTW)I and others among 52 DOTWII now accumulating revenues on The Dividend Dog Catcher premium site. A Dogs of the Week III ( Safari to Sweet Success) portfolio launched September 8. Click here to subscribe or get more information.

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Yet, always remember: Root for the Underdog.

This article was written by

Fredrik Arnold profile picture
Simple, straightforward 7-step analysis that finds lucrative income stocks.
Fredrik Arnold is my pen name. In 2012 I retired from doing quality service analysis in Boston and moved to North Carolina in 2013, thence to Central Oregon in 2018. My fascination with capital preservation, long-term investments, and trading systems keeps me blogging for Seeking Alpha. My articles focus on dividend yields, analyst median 1 yr targets, free cash flow yields, and one-year total returns as stock trading indicators. These are essential tools for catching the most valuable dividend dogs. My dividend dogcatcher premium site in the Seeking Alpha Marketplace shows annual real-time trading results since 2015.

Analyst’s Disclosure: I am/we are long T, PFE. 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.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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