106 Dividend Achievers Yield 2.4%-10.4% For June

|
Includes: APU, D, ETE, GIS, HEP, IBM, MCY, MDP, MO, OHI, PPL, SEP, T, TCP, TLP, UBA, VGR
by: Fredrik Arnold

Summary

Dividend Achiever stocks are distinguished by 10 or more straight years of higher dividends. Some 266 Achiever equities are balanced by sector and capitalization.

Dividend Achiever stock net gains ranged from 15.5% to 30.19%, calculated as of June 4, 2018.

30 Top Dividend Achievers ranged in yield from 4.39% to 10.44%. The top ten averaged an 8.22% yield.

Top ten Achiever price upsides averaged 18.33% per one-year broker targets.

$5k invested in the lowest-priced five June top-yield Achiever stocks showed 52.92% less net gains than from a $5k investment in all 10.

Top 30 Dividend Achievers By Yield Represented 8 Sectors For June

Yield (dividend / price) results from here June 4, verified by YCharts, for thirty stocks from eight of eleven Morningstar sectors revealed the actionable conclusions discussed below. As per suredividend.com:

The NASDAQ Dividend Achievers Index is made up of 265 stocks with 10+ consecutive years of dividend increases that meet certain minimum size and liquidity requirements. It is one of the better sources for high quality dividend growth stocks.

ACH (1A) GAINERS JUN17-18

Actionable Conclusions (1-10): Broker Targets Forecast 19.4% Average Net Gains For Ten Dividend Achievers To June 2019

Five of ten top dividend-yielding Achievers were verified as being among the top ten gainers for the coming year based on analyst 1-year target prices. (The names are tinted in the list above). Thus, this month the dog strategy for the Achievers was graded by Wall St. wizards as 50% accurate.

The following probable profit generating trades were identified by projections based on estimated dividend returns from $1000 invested in the thirty highest yielding stocks and their aggregate one year analyst median target prices, as reported by YCharts. Note: one year target prices by lone analysts were not applied. Ten probable profit-generating trades projected to June 4, 2019 were:

Meredith (MDP) was projected to net $301.94, based on dividends, plus mean target price estimates from six analysts, less broker fees. The Beta number showed this estimate subject to volatility 40% more than the market as a whole.

Spectra Energy Partners (SEP) was projected to net $289.38, based on a mean target price estimate from seventeen analysts, combined with projected annual dividend, less broker fees. The Beta number showed this estimate subject to volatility 25% less than the market as a whole.

TransMontaigne Partners (TLP) was projected to net $269.10, based on dividends, plus mean target price estimates from five analysts, less broker fees. The Beta number showed this estimate subject to volatility 79% less than the market as a whole.

Altria Group (MO) netted $259.90 based on dividends, plus mean target price estimates by fifteen analysts, less broker fees. The Beta number showed this estimate subject to volatility 37% less than the market as a whole.

AT&T (T) was projected to net $211.10, based on dividends, plus a mean target price estimate from twenty-eight analysts, less broker fees. The Beta number showed this estimate subject to volatility 59% less than the market as a whole.

International Business Machines (IBM) was projected to net $203.99, based on dividends, plus mean target price estimates from twenty-five analysts, less broker fees. The Beta number showed this estimate subject to volatility 10% less than the market as a whole.

TC Pipelines (TCP) was projected to net $196.38, based on a median target price estimate from eleven analysts, combined with projected annual dividend, less broker fees. The Beta number showed this estimate subject to volatility 7% more than the market as a whole.

Energy Transfer Equity (ETE) was projected to net $191.54, based on dividends, plus mean target price estimates from nineteen analysts, less broker fees. The Beta number showed this estimate subject to volatility 90% more than the market as a whole.

Dominion Energy (D) was projected to net $182.75, based on dividends, plus a mean target price estimate from fourteen analysts, less broker fees. The Beta number showed this estimate subject to volatility 72% less than the market as a whole.

General Mills (GIS) was projected to net $155.14, based on dividends, plus median target price estimates from twenty-one analysts, less broker fees. The Beta number showed this estimate subject to volatility 23% less than the market as a whole.

Average net gain in dividend and price was estimated at 22.6% on $10k invested as $1k in each of these ten stocks. This gain estimate was subject to average volatility 17% less than the market as a whole.

Actionable Conclusions (11-13): (Bear Alerts) Analysts Anticipated Three Dividend Achievers To Lose 3.8% To 22.5% By June 2019

Three probable losing trades revealed by YCharts were:

Urstadt Biddle Properties (UBA) projected a loss of $38.92 based on dividend and a median target price estimate from three analysts including $20 of broker fees. The Beta number showed this estimate subject to volatility 59% less than the market as a whole.

Mercury General Corporation (MCY) projected a loss of $83.75 based on dividend and a median target price estimate from two analysts including $20 of broker fees. The Beta number showed this estimate subject to volatility 54% less than the market as a whole.

PPL Corporation (PPL) projected a loss of $225.34 based on dividend and a median target price estimate from fifteen analysts including $20 of broker fees. The Beta number showed this estimate subject to volatility 48% less than the market as a whole.

Average net loss in dividend and price was estimated at 11.6% on $3k invested as $1k in each of these three stocks. This loss estimate was subject to average volatility 54% less than the market as a whole.

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 106 June Dividend Achievers

U.S. Dividend Achievers for this article were selected based on yield. This Base list of 106 equities showed greater than 2.44% annual payouts was reduced to 30 when the limit was set at 4.39%.

Actionable Conclusions (14-23): Yield Metrics Singled-Out 10 Top Dividend Achievers

Top ten Dividend Achievers selected 6/4/18 showing top yields, represented five sectors in the Morningstar eleven sector scheme: (1) energy [5 listed]; (2) utilities [2 listed]; (3) real estate [1 listed]; (4) consumer defensive [1 listed]; (5) communication services [1 listed].

Top Achiever stock by yield, was one of five energy representatives. TC Pipelines (TCP) [1]; led the team, followed by four more energy issues, in slots two, five, six, and eight: Spectra Energy Partners (SEP) [2];

Holly Energy Partners (HEP) [5]; TransMontaigne Partners (TLP) [6]; Energy Transfer Equity (ETE) [8].

In fourth place, Omega Healthcare (OHI) [3] was the lone real estate sector representative listed.

One of two utilities in the top ten placed third, AmeriGas Partners (APU) [3]. The other utility, PPL Corporation (PPL) [10] placed tenth.

Thereafter, the two more loners found on the list, first was the consumer defensive sector equity in seventh place, Vector Group (VGR) [7], and then came a lone communication services representative in ninth place , AT&T Inc. (T) [9], to complete the top ten June Dividend Achiever top stocks by yield.

Actionable Conclusions: (24-33) Ten Achiever Dogs Showed 12.32% To 27.7% Upsides, While (34) Three Showed Losses Of -6.8% To -26.6% Come June 2019

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 Estimated A 52.92% Disadvantage For 5 Highest Yield, Lowest Priced Dividend Achiever Stocks To June 2019

Ten top Dividend Achiever dogs were culled by yield for their monthly update. Yield (dividend/price) results verified by YCharts did the ranking.

As noted above, top ten Dividend Achiever dogs selected 6/4/18 and showing the highest dividend yields represented five sectors in the Morningstar eleven sector scheme.

Actionable Conclusions: (35) Analysts Predicted 5 Lowest-Priced of the Top Ten Highest-Yield Champion Dogs Delivering 5.55% Vs. (36) 11.78% Net Gains by All Ten by June 2019

$5000 invested as $1k in each of the five lowest-priced stocks in the top ten Dividend Achiever kennel by yield were predicted by analyst 1-year targets to deliver 52.92% LESS net gain than $5,000 invested as $.5k in each of all ten. The seventh lowest-priced Dividend Achiever, Spectra Energy Partners (NYSE:SEP), was noted to deliver the best net gain of 28.94%.

The five lowest-priced dividend Achiever dogs as of June 4 were: Energy Transfer Equity (ETE); Vector Group (VGR); TC Pipelines (TCP); PPL Corporation (PPL); Holly Energy Partners (HEP), with prices ranging from $15.69 to $26.48.

Five higher-priced dividend Achievers for June 4 were: Omega Healthcare (OHI); Spectra Energy Partners (SEP); AT&T, Inc. (T); TransMontaigne Partners (TLP); AmeriGas Partners (APU), whose prices ranged from $29.36 to $52.88.

This 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 Dividend Achiever dog 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 Indexarb, YCharts, Yahoo Finance; analyst mean target price by Thomson/First Call from Yahoo Finance. Dog photo taken from storypick.com.

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.