Your 52 Top Yield, Upside And Gains Nasdaq Index Stocks For June

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Includes: AMAT, AMGN, CA, CMCSA, CSCO, GILD, HAS, KHC, LRCX, MDLZ, PAYX, QCOM, STX, VOD, WBA, WDC, WYNN
by: Fredrik Arnold

Summary

"The Nasdaq-100 Index includes 100 of the largest domestic and international non-financial companies listed on The Nasdaq Stock Market based on market capitalization." 52 pay dividends.

Top ten broker target-estimated NASDAQ net gains as of 6/7/18 ranged 12.5%-44.98% from PCAR, CSCO, KLAC, AVGO, GILD, AMAT, WDC, CMCSA, LRCX, & VOD.

52 dividend-paying NASDAQ 100 index stocks ranged in estimated yield from 0.23% to 6.79%. Top ten, CA, HAS, QCOM, KHC, STX, QCOM, & VOD averaged 3.78%.

NASDAQ 100 index top ten firms by broker target price upsides, AVGO, GILD, WYNN,  MDLZ,  WBA, AMAT, WDC, CMCSA, VOD, & LRCX averaged 29.74% in broker-estimated price gains.

$5k invested in the lowest-priced five top-yield NASDAQ dividend stocks showed 47.26% more net-gain than $5k invested in all ten.  Low price little stocks took charge of the June NASDAQ 52.

Actionable Conclusions (1-10): Brokers Predict 19% To 45% Net Gains From June's NASDAQ Top Ten

Three of ten top yield NASDAQ dividend stocks were identified as being among the top ten net gainers for the coming year based on analyst 1-year target prices. (They are tinted gray in the chart above). So, our yield-based forecast for NASDAQ 52 divi-dogs was graded by Wall St. brokers as 30% accurate.

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, created the 2018-19 data points. Note: one year target prices by lone analysts were not applied. Ten probable profit-generating trades projected to June 7, 2019 were:

Vodafone Group (VOD) was projected to net $319.21, based on target price estimates from three analysts, plus annual dividend, less broker fees. The Beta number showed this estimate subject to volatility 53% more than the market as a whole.

Lam Research (LRCX) was projected to net $368.17, based on dividends, plus a mean target price estimate from thirty-three analysts, less broker fees. The Beta number showed this estimate subject to volatility 4% less than the market as a whole.

Comcast (CMCSA) was projected to net $449.96 based on dividends, plus median target price estimates from twenty-five analysts, less broker fees. The Beta number showed this estimate subject to volatility 19% more than the market as a whole.

Western Digital (WDC) was expected to net $271.76, based on dividends, plus a mean target price estimate from eighteen analysts, less broker fees. The Beta number showed this estimate subject to volatility 8% over the market as a whole.

Applied Materials (AMAT) was projected to net $2431.83 based on a median target price estimate from fifteen analysts, plus dividends, less broker fees. The Beta number showed this estimate subject to volatility 50% less than the market as a whole.

Walgreens Boots Alliance (WBA) was projected to net $279.17 based on dividends, plus a median target estimate from twenty-seven analysts, less broker fees. The Beta number showed this estimate subject to volatility 15% more than the market as a whole.

Mondelez International (MDLZ) was projected to net $257.12, based on a median target estimates from twenty-three analysts, plus dividends, less broker fees. The Beta number showed this estimate subject to volatility 13% below the market as a whole.

Gilead Sciences (GILD) was projected to net $130.74, based on dividends, plus a mean target price estimate from thirty analysts, less broker fees. The Beta number showed this estimate subject to volatility 19% more than the market as a whole.

Wynn Resorts (WYNN) was expected to net $240.81, based on dividends, plus a mean 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.

Kraft Heinz (KHC) netted $191.86 based on a median target price estimate from twenty-three analysts, plus dividends, less broker fees. The Beta number showed this estimate subject to volatility 51% less than the market as a whole.

The average net gain in dividend and price was estimated at 27.52% on $10k invested as $1k in each of these ten dogs. This gain estimate was subject to average volatility 27% more than the market as a whole.

Actionable Conclusions (11 & 12): (Bear Alert) Analysts Expected Two NASDAQ Stocks To Lose 4.8% & 3.8% By June, 2019

The probable losing trades revealed by Y-Charts to 2019 were:

Paychex (NASDAQ:PAYX) lost $47.95 net per the median target estimate from sixteen analysts, including dividends, and broker fees. The Beta number showed this estimate subject to volatility equal to the market as a whole.

Xilinx (NASDAQ:XLNX) lost $38.07 net per the median target estimate from sixteen analysts, including dividends, and broker fees. The Beta number showed this estimate subject to volatility 14% 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".

52 NASDAQ Dividend Stocks By Yield

Actionable Conclusions (13-22): 10 Top NASDAQ Dividend Stock Ranks By Yield

Top ten NASDAQ dividend stocks selected 6/7/18 by yield represented six of eleven Morningstar sectors. Top yielding stock, the lone communication services representative, was Vodafone Group (VOD) [1].

Second place Seagate Technology (STX) [2] was the first of four technology firms in the top ten. The other three technology representatives placed fourth, and seventh and tenth. They were, Qualcomm (QCOM) [4], Cisco Systems (CSCO) [7], and CA (CA) [10].

A single Consumer defensive representative showed in third place, Kraft Heinz (KHC) [3]. One industrial representative placed fifth, Paychex (PAYX) [5].

Two Healthcare firms placed sixth, and eighth by yield, Gilead Sciences (GILD) [6], and Amgen (AMGN) [8].

Finally, a lone consumer cyclical representative placed ninth, Hasbro (HAS) [9], to complete the NASDAQ 100 top ten pack by yield for June.

Actionable Conclusions: (23-32) Top Ten NASDAQ 100 Dogs Showed 18.2% To 40.2% Upsides To June, 2019, With (33) Three Downsiders At The Bottom

To quantify top dog rankings, analyst mean price target estimates provided a "market sentiment" gauge of upside potential. Added to the simple high-yield "dog" metrics, analyst mean price target estimates became yet another tool to dig out bargains.

Analysts Cast A 47.26% Advantage For 5 Highest Yield, Lowest Priced NASDAQ Top 10 Dividend Stocks To June, 2019

Ten top NASDAQ 100 dividend dogs were culled by yield for their monthly update. Yield (dividend / price) results verified by YCharts did the ranking.

As noted above, top ten NASDAQ dividend stocks represented six of the eleven Morningstar sectors.

Actionable Conclusions: Analysts Projected 5 Lowest-Priced of the Top Ten Highest-Yield NASDAQ 100 Stocks (34) To Fetch 16.56% Vs. (35) 11.24% Net Gains by All Ten by June, 2019

$5000 invested as $1k in each of the five lowest-priced stocks in the top ten NASDAQ dividend kennel by yield were predicted to produce 47.26% more gain than $5,000 invested as $.5k in all ten. The tenth lowest priced NASDAQ top yield stock, Vodafone Group (VOD), was projected to deliver the best net gain of 44.98%.

The five lowest-priced top-yield NASDAQ dividend stocks for May 4 were: Vodafone Group (VOD); CA, Inc. (CA); Cisco Systems (CSCO); Seagate Technology (STX); Kraft Heinz (KHC), with prices ranging from $25.18 to $57.67.

Five higher-priced NASDAQ dividend stocks for May 4 were: Qualcomm (QCOM); Paychex (PAYX); Gilead Sciences (GILD); Hasbro (HAS); Amgen (AMGN), whose prices ranged from $60.64 to $183.30.

The distinction between 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 NASDAQ dividend 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 www.indexarb.com; YCharts.com; finance.yahoo.com; analyst mean target price by Thomson/First Call in YahooFinance. Dog photo: thestreet.com

Disclosure: I am/we are long csco, INTC.

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.