148 Monthly Paying Dividend SML Equities And 70 Funds For July

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Includes: AGNC, AHOTF, ALARF, CEFL, CGIFF, CJREF, CRIUF, ECC, FTF, GNL, MFCSF, MHIVF, MORL, NCV, NCZ, NHF, ORC, OXLC, PHK, PSEC, RA, SCM, SUNS, TRSWF
by: Fredrik Arnold

Summary

Here's your July 2018 Monthly-Paid (MoPay) Small-Mid-Large Cap Dividend, Yield, Upsides, and Net Gains Report. Nano-Cap MoPays are not listed.

Contents: 1. US/CDN Stocks @2.22%+ yield (148) 2. Stocks by price upside (30); 3. Closed-End Investment Companies, Exchange-Traded Funds & Notes (CEICs/ETFs/ETNs) @5.8%+ yield (70).

U.S. and Canadian MoPays are combined for this Small-Mid-Large Cap write-up, as are CEICs/ETFs/ETNs so combined. Some equities have listings in both exchanges.

Items: 1. Top MoPay stock gains; 2. Overall best MoPay gainers; 3. Funds vs.Equities; 4. Fund risks/rewards. All per prices as of 7/20/18.

Analyst 1-yr. targets revealed that investing $5k in the lowest priced five of ten top yield MoPay SML US/CDN equities produced 61.07% more gain than $5k put in all ten. Low price little dog stocks led the pack into July. Prices quoted are per the national exchange listed, CAD or USD.

Actionable Conclusions (1-10): Analysts Tag Top Ten MoPay SML Stocks to Net 14.76% to 77.88% Gains To July, 2019

Three of the ten top-yield MoPay stocks (shaded in the chart above) were also among the top ten gainers for the coming year based on analyst 1 year target prices. Thus the yield strategy for this MoPay group, as graded by analyst estimates for July, proved 30% accurate.

The following probable profit-generating trades were determined by estimated dividend returns from $1000 invested in each highest yield stock. Their dividends plus the aggregate one year analyst median target prices, as reported by YCharts, created the 2018-19 data. Ten probable profit-generating trades projected to July 20, 2019 were:

Crius Energy (OTC:CRIUF) [KWH.UN.TO] netted $778.75 [CAD]based on a median target estimate from five analysts combined with projected annual dividend less broker fees. The Beta number showed this estimate subject to volatility 87% less than the market as a whole.

Corus Entertainment (OTCPK:CJREF)[CJR.B.TO] netted $684.06 [CAD], based on dividend, plus a median target price estimate from ten analysts less broker fees. The Beta number showed this estimate subject to volatility 36% less than the market as a whole.

Chemtrade Logistics (OTC:CGIFF) [CHE-UN.TO] netted $368.16, based on dividend plus a median target price estimate from nine analysts less broker fees. The Beta number showed this estimate subject to volatility 7% more than the market as a whole.

Alaris Royalty (OTC:ALARF) [AD.TO] was forecast to net $280.49 [CAD] based on dividends plus a median target price estimate from seven analysts less broker fees. The Beta number showed this estimate subject to volatility 5% less than the market as a whole.

American Hotel Income (OTC:AHOTF) [HOT.UN.TO] netted $280.49 [CAD] based on dividends plus the median of annual price estimates from nine analysts less broker fees. The Beta number showed this estimate subject to volatility 52% less than the market as a whole.

Invesque (OTC:MHIVF) [IVQ.U.TO] netted $220.90 [CAD] based on target price estimates from six analysts, plus dividends less broker fees. The Beta number showed this estimate subject to volatility 24% more than the market as a whole.

TransAlta Renewables (OTC:TRSWF)[RNW.TO] netted $183.62 [CAD] based on a median target estimate from eleven analysts, plus dividends less broker fees. The Beta number showed this estimate subject to volatility 9% less than the market as a whole.

Inovalis Real Estate (IVREF)[INO.UN.TO] was predicted to net $168.24 [CAD] based on median target price estimates from five analysts plus dividends less broker fees. The Beta number showed this estimate subject to volatility 164% more than the market as a whole.

Solar Senior Capital (SUNS) netted $150.43, based on median target price estimates from three analysts plus dividend, less broker fees. The Beta number showed this estimate subject to volatility 40% less than the market as a whole.

Medical Facilities (MSCSF) [DR.TO] netted $147.59 [CAD] based on median target price estimates from six analysts plus dividends less broker fees. The Beta number showed this estimate subject to volatility 46% less than the market as a whole.

Average net gain in dividend and price was 32.4% on $1k invested in each of these ten MoPay dividend stocks. This gain estimate was subject to average volatility 7% less than the market as a whole.

Actionable Conclusion (11): (Bear Alert) Analysts Anticipated One SML MoPay Stock To Lose 4.9% By July, 2019

The probable losing trade revealed by YCharts for 2019 was:

Prospect Capital (PSEC) which projected a $48.90 loss based on dividend and a median target price estimate from four analysts including $20 of broker fees. The Beta number showed this estimate subject to volatility 24% 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 specifically, these are, in fact, best called "underdogs".

July's MoPay SML Dividend Dog Data

Three monthly dividend buy and hold lists produced numerous actionable conclusions and several more un-numbered issues. To draw these conclusions and issues, July 20 closing prices and estimated annual dividends were referenced. Monthly pay (MoPay) equity (1) yield and (2) upside potential lists were compared and contrasted against (3) a high yield (and higher risk) MoPay CEICs/ETFs/ETNs list.

Monthly Pay Dividend Qualities

Quarterly, Semi-Annual and Annual dividend investors anxiously await announcements from a firm, fund, or brokerage to learn if their next dividend will be higher, lower, or paid at all. Monthly pay stocks, funds, trusts, and partnerships inform the holder every four and one third weeks by check and/or statement. If the entity reduces or suspends a payment, the holder can sell out of the investment immediately to cut future losses.

List One 148 US & Canadian Monthly Pay Dividend Equities by Yield

Top ten of these US & Canadian exchange listed monthly pay small-mid-large cap dividend equities showing the best yields into July represented just four of the eleven Morningstar market sectors, with representative firms split 2 to 2 to 5 to 1 between the financial services, consumer cyclical, real estate, and utilities sectors.

Top MoPay stocks for July were two consumer cyclical representatives from the same firm, Corus Entertainment [CJR.B.TO][1], and Corus Entertainment (CRJEF) [2].

In third place was a single Utilities representative, Crius Energy [KWH.UN.TO] [3].

Five real estate representatives placed fourth, fifth, and seventh, through ninth, Orchid Island Capital (NYSE:ORC) [4]; AGNC Investment (NASDAQ:AGNC) [5]; American Hotel Income [HOT.UN.TO][7]; Global Net Lease (NYSE:GNL) [8]; American Hotel Income (OTC:AHOTF) [9].

To complete the July SML MoPay top ten by yield, in sixth and tenth places, came the two financial services stocks, Prospect Capital (NASDAQ:PSEC) [6], and the trailing financial placed tenth, Stellus Capital Investment (NYSE:SCM) [10].

List Two: Monthly Pay Dividend Stocks by Price Upside

Results from YCharts for MoPay dividend stocks as of market closing price July 20 were compared with analyst median target Charts. Ten top stocks displayed 8.7% to 66.1% price upsides for the coming year based on analyst 1 yr. targets.

Three stocks of ten (tinted) on this price upside list were also members of the top ten list by yield. Those three made this upside list in the first, second, and fifth places. The first place price upside honor went to Crius Energy [KWH.UN.TO] [1]. Second place went to Corus Entertainment [CJR.B.TO] [2]. Third place was taken by Chemtrade Logistics (OTC:CGIFF) [CHE.UN.TO] [3] and in fourth was Alaris Royalty (OTC:ALARF)[AD.TO] [4]. In fifth place was American Hotel Income (OTC:AHOTF) [HOT.UN.TO] [5].

The final top upside five firms were: Invesque (OTC:MHIVF) [IVQ.U.TO] [6]; TransAlta Renewables (OTC:TRSWF)[RNW.TO] [7]; Inovalis Real Estate (IVREF) [INO.UN.TO] [8]; Medical Facilities (OTCPK:MFCSF) [DR.TO] [9]; Solar Senior Capital (NASDAQ:SUNS)[10].

Price upside, of course, was distinguished by the gap between the current price and analyst target one-year median positive price targets for each stock.

Those ten MoPay stocks showing the highest upside price potential into 2019 were gleaned from the 148 selected by yield. Three to nine analysts have historically provided the most accurate mean target price estimates.

List Three: Monthly Pay Dividend SML Closed End Investment Companies, Exchange Traded Funds, and Notes, by Yield

Seventy top monthly dividend paying (MoPay) small, mid, & large cap Closed End Funds, Exchange Traded Funds, and Notes listed above were culled from nearly 1200 candidates. Annual yields greater than 10.35% calculated as of July 20 determined the top ten.

Top ten SML monthly paying dividend closed end investment companies, funds, & notes showing the biggest yields for July by YCharts & YahooFinance data featured two exchange traded notes [ETNs], and eight closed-end investment companies [CEICs].

Exchange traded notes captured the first and second positions: UBS ETRACS Mthly Py 2xLvg Mortg REIT ETN (MORL) [1] UBS ETRACS Mthly Py 2xLvg Closed-End ETN (CEFL) [2].

Eight CEICs placed third through tenth: Oxford Lane Capital (OXLC) [3]; Eagle Point Credit (ECC) [4]; AllianzGI Convertible & Inc II (NCZ) [5]; PIMCO High Income (PHK) [6]; AllianzGI Convertible & Income (NCV) [7]; NexPoint Strategic Opportunities Fund (NHF) [8]; Franklin Limited Duration Income Trust (FTF) [9]; Brookfield Real Assets Income Fund (RA) [10].

This completed the top ten Closed End Investment Companies, Exchange Traded Funds and Notes list for July, 2018.

Compare Monthly Pay Dividend Equities with Top Ten Funds

Yield Metrics Revealed A Yuge Advantage For Five Lowest Priced High Yield MoPay Equities

Ten monthly pay stock equities were ranked by yield. The following results, verified by YCharts and Yahoo Finance, produced the following charts.

Actionable Conclusions: Analysts Estimated 5 Lowest Priced of Top Ten Highest Yield MoPay Dividend StocksCould Produce (12) 38.46% VS. (13) 23.88% Net Gains from All Tenby July, 2019

$5000 invested as $1k in each of the five Lowest priced stocks of the top ten MoPay group by yield were predicted by analyst 1 year targets to deliver 61.07% more net gain than $5,000 invested as $.5k in all ten. The third lowest priced MoPay dividend stock, Crius Energy [KWH.UN.TO], was predicted to deliver the best net gain of 77.88%.

Lowest priced five MoPay SML dividend stocks, estimated July 20, were: Corus Entertainment [CJR.UN.TO]; Corus Entertainment (OTCPK:CJREF); Crius Energy [KWH.UN.TO]; American Hotel Income (OTC:AHOTF); Prospect Capital [PSEC], with prices ranging from $3.19 to $6.92.

Higher priced five MoPay dividend dogs, estimated July 20, were: Orchid Island Capital Inc. (ORC); American Hotel Income [HOT.UN.TO]; Stellus Capital Investment (SCM); AGNC Investment (AGNC); Global Net Lease (GNL), whose prices ranged from $8.04 to $20.86.

This distinction between five low priced dividend dogs and the general field of ten reflects the "basic method" Michael B. O'Higgins employed for beating the Dow. The same technique, you now see, can also be used to find some rewarding stocks for the MoPay Stock kennel.

The added scale of projected gains based on analyst targets contributed 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. Its also the work analysts got paid big bucks to do.

Caution is advised, however, as analysts are historically 20% to 80% accurate on the direction of change and about 0% to 20% accurate on the degree of the 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

Gains/declines as reported do not factor-in any tax problems resulting from dividend, profit, or return of capital distributions. Consult your tax advisor regarding the source and consequences of "dividends" from any investment.

Stocks listed above were suggested only as decent starting points for your MoPay dividend 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.ycharts.com; www.dividend.com; finance.yahoo.com; analyst mean target price by Thomson/First Call in Yahoo Finance. Dog Photo: wallpapercave.com

Disclosure: I am/we are long MFCSF.

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.

Editor's Note: This article discusses one or more securities that do not trade on a major U.S. exchange. Please be aware of the risks associated with these stocks.