50 Top Yield Basic Materials WallStar Dividend Stocks For July

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Includes: ARLP, BAK, CCR, CINR, DRD, EVA, GPRE, GSM, PKX, SXCP, TGLS, TX, WLKP
by: Fredrik Arnold

Summary

WallStars are distinguished by positive broker target price upsides. Industrial Metals, Gold, Specialty Chemicals, Steel, & Coal topped July's Basic Materials WallStars for net gains calculated 7/20/18.

Ten top basic materials WallStar yields ranged 6.17% to 13.58% from TGLS; WLKP; DRD; CHE.UN.TO; BAK; CINR; EVA; SXCP; ARLP; CCR.

Basic Materials top ten WallStar broker augured-upsides were from SQM, CCR, SXCP, CHE.UN.TO, TX, TGLS, PKX, GPRE, DRD, & GSM per 1yr. broker targets.

50 Top Basic Materials WallStars ranged in yield from 2.03% to 13.58%. Top ten averaged 8.66% yield.

$5k invested in July Basic Materials WallStars showed 33.21% more net gain than from $5k invested in all ten.  The little low priced top yield dogs ruled the July basic WallStars.

Actionable Conclusion (1-10): Brokers Asserted 7.43% To 49.28% Net Gains For Ten Basic Materials Stocks By June 2019

Six of ten top-yielding Basic Materials stocks (tinted in the chart above) were verified as being among the top ten net gainers for the coming year based on analyst 1-year target prices. Thus, the yield-based forecast for the June Basic Materials stocks as graded by Wall St. wizards was 60% accurate.

The following probable profit-generating trades were identified by estimated dividend returns from $1000 invested in each highest yielding stock. That dividend and the aggregate one year analyst median target price, as reported by YCharts, created the 2018-19 data. Ten probable profit-generating trades projected to July 20, 2019 were:

Ferroglobe (GSM) was projected to net $939.90, based on dividends, plus median target price estimates from five analysts, less broker fees. The Beta number was showed this estimate subject to volatility 58% more than the market as a whole.

DRDGold (DRD) was projected to net $562.87, based on dividends, plus mean target price estimates from one analyst, less broker fees. The Beta number showed this estimate subject to volatility 83% more than the market as a whole.

Green Plains (GPRE) was projected to net $507.04, based on dividends plus the median of six analyst estimates, less broker fees. The Beta number showed this estimate subject to volatility 27% more than the market as a whole.

POSCO (PKX) was projected to net $480.91, based on dividends plus the median of three analyst estimates, less broker fees. The Beta number showed this estimate subject to volatility 29% more than the market as a whole.

CONSOL Coal Resources (CCR) was projected to net $400.53, based on dividends plus a median target price estimate from five analysts, less broker fees. A beta number was not available for CCR.

Tecnoglass (TGLS) was projected to net $397.33, based on dividends plus a median target price estimate from two analysts, less broker fees. The Beta number showed this estimate subject to volatility 37% less than the market as a whole.

SunCoke Energy Partners (SXCP) was projected to net $374.32, based on target price estimates from four analysts, plus projected annual dividend, less broker fees. The Beta number was showed this estimate subject to volatility 45% more than the market as a whole.

Alliance Resource (ARLP) was projected to net $360.10, based on target price estimates from four analysts, plus projected annual dividend, less broker fees. The Beta number showed this estimate subject to volatility 25% less than the market as a whole.

Chemtrade Logistics (CHE.UN.TO) netted $355.00 based on target price estimates from nine analysts, plus projected annual dividend, less broker fees. The Beta number showed this estimate subject to volatility 7% more than the market as a whole.

Ternium (TX) was projected to net $346.76, based on dividends with a median of target price estimates from thirteen analysts, less broker fees. The Beta number showed this estimate subject to volatility 6% more than the market as a whole.

Average net gain in dividend and price was estimated at 47.25% on $10k invested as $1k in each of these ten dogs. This gain estimate was subject to average volatility 21% over the market as a whole.

Top 50 Basic Materials WallStars By Yield Represented 10 Of 13 Industries For June

Yield (dividend / price) results from YCharts June 11 verified by YahooFinance for fifty stocks from ten Basic Materials Industries produced the actionable conclusions in this article.

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 50 July Basic Materials WallStars By Yield

Actionable Conclusion (11-20) Yield Metrics Selected 10 Top Basic Materials WallStars

Top ten Basic Materials WallStars selected 7/20/18 showing top yields represented seven of thirteen industries constituting the sector:(1) coal [3 listed]; (2) lumber and wood [1 [listed]; (3) industrial metals & minerals [1 listed]; (4) chemicals [2 listed]; (5) specialty chemicals [1 listed]; (6) gold [1 listed]; (7) building materials [1 listed].

Best yield basic materials 'WallStar' stock was the top of three coal firms, CONSOL Coal Resources (NYSE:CCR) [1]. The other two coal representatives placed second, and third, Alliance Resource (NASDAQ:ARLP) [2], and SunCoke Energy Partners (NYSE:SXCP) [3].place went to an industrial metals and minerals representative, Ciner Resources (CINR) [5].

Sixth by yield was was one of two chemical firms, Braskem (BAK) [6]. The other chemical firm placed ninth, Westlake Chemical (WLKP) [9].

The seventh slot was occupied by a specialty chemical representative from Canada, Chemtrade Logistics (CHE.UN.TO) [7]. In the eighth slot went a Gold firm, DRDGold (NYSE:DRD) [8].

Finally tenth position was assumed by a building materials Tecnoglass (NASDAQ:TGLS) [10], which completed the top ten July Basic Materials WallStar list by yield.

Actionable Conclusions: (21-30) Ten Basic Materials WallStars Showed 28.12% To 92.98% Upsides, To July, 2019

To quantify top 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 Forecast A 33.21% Advantage For 5 Highest Yield, Lowest Priced Basic Materials WallStars By July, 2019

Ten top Basic Materials WallStars were culled by yield for their monthly update. Yield (dividend / price) results verified by YCharts did the ranking.

As noted above, top ten Basic Materials WallStars selected 7/20/18 showing the highest dividend yields represented seven industries in the basic materials sector.

Actionable Conclusions: Analysts Predicted 5 Lowest-Priced of the Top Ten Highest-Yield 'WallStar' Basic Materials Stocks (31) Delivering 41.8% Vs. (32) 31.38% By July, 2019

$5000 invested as $1k in each of the five lowest-priced stocks in the top ten dividend 'WallStar' Basic Materials kennel by yield was predicted by analyst 1-year targets to deliver 33.21% more net gain than $5,000 invested as $.5k in each of all ten. The very lowest priced Basic Materials top yield WallStar, DRDGold (DRD), was projected to deliver the best net gain of 56.29%.

The five lowest-priced top-yield Basic Materials stocks as of July 20 were: DRDGold (DRD); Tecnoglass (TGLS); CONSOL Coal Resources (CCR); Chemtrade Logistics (CHE.UN.TO); SunCoke Energy Partners (SXCP), with prices ranging from $2.54 to $15.85.

Five higher-priced Basic Materials as of July 20 were: Alliance Resource (ARLP); Westlake Chemical (WLKP); Braskem (BAK); Ciner Resources (CINR); Enviva Partners (EVA), whose prices ranged from $19.10 to $29.10.

That distinction between the five low-priced dividend stocks 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 Basic Material 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 or YCharts. Dog photo: catxdog.com

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

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.