46 Nasdaq 'Safer' Dividend Net Gains Led By Lam, Western, Broadcom, Vodafone, And KLA-Tencor, Per Broker July Targets

Summary

• 46 of 52 NASDAQ Index dividends were presumed "safer" because they showed positive one-year returns and free cash flow yields greater than dividend yields as of 7/12/17.
• Broker target-estimated top ten 'safer' dividend net-gains ranged 13.7-50.5%, by CSCO, PCAR, SBUX, MCHP, CMCSA, KLAC, VOD, AVGO, WDC, & LRCX.
• Top 10 "safer" dividend NASDAQ yields ranged 3.73-10.32% from SBUX; KLAC; FAST; GILD; CSCO; PAYX; AVGO; QCOM; STX; VOD. Their free cash flow yields ranged 4.12-11.14%.
• Besides safety margin, NASDAQ dividend stocks also reported payout ratios (lower is better), total annual returns, dividend growth, and P/E ratios. Total annual returns narrowed the Index list from 52 to 48 by disqualifying stocks reporting negative returns.
• Analyst one-year targets revealed ten highest yield "safer" dividend NASDAQ stocks that could average 7.74% more gain from $5k invested in the lowest priced five than from $5K invested in all ten. Low price little equities dominated this July collection.

Actionable Conclusions (1-10): Brokers Estimated Top Ten NASDAQ "Safer" Dividend Stocks to Net 13.7% to 50.5% Gains By July 2019

Five of the ten top yield "safer" Dividend NASDAQ stocks (with name backgrounds tinted grey in the list above) were found among the top ten gainers for the coming year based on analyst one-year target prices. Thus the yield strategy for this group as graded by analyst estimates for June proved 50% 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 July 12, 2019, were:

Lam Research (LRCX) netted $505.22, 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 42% more than the market as a whole.

Western Digital (WDC) netted $457.49, based on a median target price set by thirty-three analysts plus estimated dividends less broker fees. The Beta number showed this estimate subject to volatility 2% more than the market as a whole.

Broadcom (AVGO) netted $449.66, based on dividends plus a target price estimate from thirty-five analysts, minus broker fees. The Beta number showed this estimate subject to volatility 7% less than the market as a whole.

Vodafone Group (VOD) netted $440.91, based on a mean target estimate from three analysts plus dividends less broker fees. The Beta number showed this estimate subject to volatility 18% less than the market as a whole.

KLA-Tencor (KLAC) netted $276.99, based on dividends plus a median target price estimate from sixteen analysts less broker fees. The Beta number showed this estimate subject to volatility 54% more than the market

Analyst’s 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.