71 10%+ Dividend Yield Top Dogs For May

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Includes: AI, AWCMY, BBVA, CMFN, GME, GMLP, LKSD, MMLP, NEWM, NTXFY, ORC, PER, PRT, SMLP, SXCP, TWO, VGR
by: Fredrik Arnold
Summary

These Top Dogs all show positive broker target price upsides. 71 stocks displayed 10%+ forward yield, $2.00+ prices, and $100M+ market caps 5/14/19. Yields above 12.25% winnowed the list to T.

Top dog target-estimated April top-ten net-gain estimates ranged 32.83-125.95% for SMLP, GMLP, GME, BBVA, GARS, MMLP; CM; SXCP, PRT, and top pick, LKSD, per YCharts dividend data.

30 Top stocks estimated annual yield ranged 12.25-19.71%. Top ten, TWO, ORC, NEWM, NXTFY, VGR, AWCMY; LKSDE, GME, PER, and top pick, AI, averaged 16.89% yield.

Top-ten firms by Wall Street target-price upsides FSK, SMLP, GMLP, BBVA, MMLP, GARS, CMFN, SXCP, PRT, and top dog, LKSD averaged a 39.9% estimated price gain.

$5k invested 5/14/19 in the lowest-priced five 10%+ top-yield ten dividend stocks showed 32.3% more projected net-gain than from $5k in all ten, per Broker targets.  The low-price smaller Top Dogs dominated the May 10%+yield pack.

Actionable Conclusions (1-10): Brokers Calculated 32.83% To 12.59% Net Gains For Ten 10%+ Yield Stocks By May 2020

Two of ten top 10%+Yield WallStars were among the top ten gainers for the coming year (based on analyst 1-year targets). So, this forecast for 10%+ Yields, as graded by Wall St. Brokers, was 40% accurate.

Source: YCharts

Projections based on dividends from $1000 invested in the highest yielding stocks and aggregate one-year analyst median target prices of those stocks, as reported by YCharts, created the 2020 data points. Note: one-year target prices from single analysts were not applied (n/a). Ten probable profit-generating trades to May 14, 2020, were:

LSC Communications Inc. (LKSD) netted $1,259.48 based on the median of target price estimates from three analysts, plus dividends less broker fees. A Beta number was not available for LKSD.

PermRock Royalty Trust (PRT) was projected to net $728.88, based on the median of target price estimates from four analysts, plus the estimated annual dividend, less broker fees. A Beta number was not available for PRT.

SunCoke Energy Partners (SXCP) was projected to net $670.01, based on target price estimates from three analysts, plus dividends, less broker fees. The Beta number showed this estimate subject to volatility 57% over the market as a whole.

CM Finance Inc. (NASDAQ:CMFN) was projected to net $474.60 based on dividends, plus the median of target estimates from two brokers, less broker fees. The Beta number showed this estimate subject to volatility 42% over the market as a whole.

Martin Midstream Partners LP (MMLP) was projected to net $365.87 based the median of target price estimates from five analysts, plus the estimated dividends, less broker fees. The Beta number showed this estimate subject to volatility 8% over the market as a whole.

Garrison Capital Inc. (NASDAQ:GARS) was projected to net $364.20, based on dividends, plus the median of target price estimates from five analysts, less broker fees. The Beta number showed this estimate subject to volatility 34% less than the market as a whole.

Banco Bilbao Vizcaya Argentaria SA (BBVA) was projected to net $355.80, based on a median target price estimate from two analysts, plus dividends, less broker fees. The Beta number showed this estimate subject to volatility 1% less than the market as a whole.

GameStop Corp. (GME) was projected to net $342.26, based on a median target price estimate from ten analysts, plus dividends, less broker fees. The Beta number showed this estimate subject to volatility 42% less than the market as a whole.

Golar LNG Partners LP (GMLP) was projected to net $416.98 based the median of target price estimates from thirteen analysts, plus the estimated dividends, less broker fees. The Beta number showed this estimate subject to volatility 14% over the market as a whole.

Summit Midstream Partners LP (SMLP) was projected to net $328.29, based on dividends plus the median of target price estimates from nine analysts, less broker fees. The Beta number showed this estimate subject to volatility 71% over the market as a whole.

The average net gain in dividend and price was estimated at 52.26% on $10k invested as $1k in each of these ten stocks. This gain estimate was subject to average volatility 11% less than the market as a whole.

Source: ebay.co.uk

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."

71 10%+Yield May Top Dogs By Broker Price Target Upsides

Source:YCharts

71 10%+ Yield Top Dogs By Yield

Source:YCharts

Actionable Conclusions (11-20) Top Ten Dogs' Yields Ranged 14.18-19.71%

Top ten 10%+Yield Top Dogs selected 5/14/19 by yield represented seven of eleven Morningstar sectors.

Top stock on the list was the first of two financial services representatives, Arlington Asset Investment Corp. (NYSE:AI) [1], the other financial services dog placed seventh, Natixis (OTCPK:NTXFY) [7].

One energy stock placed second, SandRidge Permian Trust (PER) [2]. Two consumer cyclical representatives followed in third and eighth places, GameStop Corp. [3], and New Media Investment Group Inc. (NEWM) [8].

One representative in industrials placed fourth, LSC Communications Inc. [4]. A single basic materials member placed fifth, Alumina Ltd. (OTCQB:AWCMY) [5], which was followed by the lone consumer defensive sector representative in sixth, Vector Group Ltd. (VGR) [6]

Finally, two in real estate placed ninth and tenth, Orchid Island Capital, Inc. (ORC) [9], and Two Harbors Investment Corp. (TWO) [10], to complete the 10%+ Yield Top Dog top ten for May 2019-20.

Actionable Conclusions: (21-30) Top Ten 10%+ Yield Top Dogs Showed 18.7% To 110.44% Upsides To May 2020; (22) Lowest Downsides Found Eight at 0%.

Source:YCharts

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

Analysts Cast A 32.29% Advantage For 5 Highest Yield, Lowest Priced 10%+ Yield Top Dogs To May 2020

Ten top 10%+ Yield Top Dogs were culled by yield for this May update. Yield (dividend/price) results verified by Yahoo Finance did the ranking.

Source:YCharts

As noted above, top ten 10%+Yield Top Dogs selected 5/14/19 showing the highest dividend yields represented seven of eleven sectors in the Morningstar scheme.

Actionable Conclusions: Analysts Estimated 5 Lowest-Priced Top Ten Highest-Yield 10%+Top Dogs (25) Delivering 38.93% Vs. (26) 29.43% Net Gains From All Ten By May 14, 2020

Source:YCharts

$5000 invested as $1k in each of the five lowest-priced stocks in the top ten 10%+ Yield Top Dogs collection was expected by analyst 1-year targets to deliver 32.29% less net gain than $5,000 invested as $.5k in all ten. The second lowest priced 10%+ top yield WallStar, LSC Communications Inc., was projected by analysts to deliver the best net gain of 125.95%.

Source:YCharts

The five lowest-priced top 10%+ Yield stocks as of May 14 were: SandRidge Permian Trust; LSC Communications Inc.; Orchid Island Capital Inc.; Alumina Ltd; Arlington Asset Investment Co., with prices ranging from $2.11 to $7.61.

Five higher-priced 10%+ Dividend Top Dogs from April 18 were GameStop Corp., Vector Group Ltd, New Media Investment Group Inc., Two Harbors Investment Corp. and Natixis, whose prices ranged from $8.53 to $7.61.

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.

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 10%+ Yield WallStar purchase or sale research process. These were not recommendations.

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: ebay.co.uk

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.

Additional disclosure: 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.