102 10%+ Dividend Yield Top Dogs Found For June

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Includes: AI, AWCMY, BCRH, CESDY, CMFN, CNSL, GME, LKSD, MMLP, NNA, NTXFY, QUAD, SMLP, SXCP, TLRD, WPG
by: Fredrik Arnold
Summary

These top dogs all show positive broker-target price upsides. 102 stocks displayed 10%+ forward yield, $2.00+ prices, and $50M+ market caps 6/6/19. Yields above 13.39% winnowed the list to 30.

Top dog target-estimated June top-ten net-gain estimates ranged 42.62%-273.14% for BCRH, CMFN, SMLP, GME, MMLP, CNSL, SXCP, TLRD, LKSD, and top pick, QUAD, per YCharts dividend data.

30 top stocks estimated annual yield ranged 13.39%-34.66%. Top ten, SMLP, AWCMY, CESDY, NNA, NTXFY, LKSD, AI, WPG, GME, and top pick, CNSL, averaged 22.11% yield.

Top ten firms by Wall Street target-price upsides GME, BCRH, SMLP, CMFN, CNSL, MMLP, SXCP, LKSD, TLRD, and top dog, QUAD, averaged a 75.67% estimated price gain.

$5k invested 6/6/19 in the lowest-priced five 10%+ top-yield ten dividend stocks showed 32.6% more projected net gain than from $5k in all ten, per broker targets.  The low-price smaller top dogs dominated the June 10%+ yield pack.

Actionable Conclusions (1-10): Brokers Calculated 42.62% To 273.14% Net Gains For Ten 10%+ Yield Stocks By June 6, 2020

Four 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 $1,000 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 June 6, 2020 were:

Quad/Graphics (QUAD) was projected to net $2,731.42 based on a median target price estimate from two analysts, plus dividends, less broker fees. The Beta number showed this estimate subject to volatility 81% more than the market as a whole.

LSC Communications Inc. (LKSD) netted $1,229.48 based on the median of target price estimates from three analysts, plus dividends less broker fees. A Beta number was not available for LKSD.

Tailored Brands Inc. (TLRD) was projected to net $1,166.54, based on the median of target price estimates from two analysts, plus the estimated annual dividend, less broker fees. The Beta number showed this estimate subject to volatility 92% more than the market as a whole.

SunCoke Energy Partners (SXCP) was projected to net $785.45, based on target price estimates from three analysts, plus dividends, less broker fees. The Beta number showed this estimate subject to volatility 60% over the market as a whole.

Consolidated Communications Holdings Inc. (CNSL) was projected to net $758.37 based on dividends, plus the median of target estimates from five brokers, less broker fees. The Beta number showed this estimate subject to volatility 2% under the market as a whole.

Martin Midstream Partners LP (MMLP) was projected to net $592.90 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 9% over the market as a whole.

GameStop Corp. (GME) was projected to net $562.85, based on a median target price estimate from eleven analysts, plus dividends, less broker fees. The Beta number showed this estimate subject to volatility 35% less than the market as a whole.

Summit Midstream Partners LP (SMLP) was projected to net $507.04, 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 67% over the market as a whole.

CM Finance Inc. (CMFN) was projected to net $484.79 based the median of target price estimates from two analysts, plus the estimated dividends, less broker fees. The Beta number showed this estimate subject to volatility 31% over the market as a whole.

Blue Capital Reinsurance Holdings Ltd. (BCRH) was projected to net $426.16, based on dividends, plus the median of target price estimates from two analysts, less broker fees. The Beta number showed this estimate subject to volatility 26% less than the market as a whole.

The average net gain in dividend and price was estimated at 92.45% on $10k invested as $1k in each of these ten stocks. This gain estimate was subject to average volatility 13% more than the market as a whole.

Source: dog-names-and-more.com

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".

102 10%+ Yield June Top Dogs By Broker Price Target Upsides

Source: YCharts

102 10%+ Yield Top Dogs By Yield

Source: YCharts

Actionable Conclusions (11-20) Top Ten 10%+ Dog Yields Ranged 16.34-34.66%

Top ten 10%+ yield top dogs selected 6/6/19 by yield represented seven of eleven Morningstar sectors.

Top stock on the list was the lone communication services representative, Consolidated Communications Holdings Inc. [1]. One consumer cyclical representative followed in second place, GameStop Corp. [2].

One real estate stock placed third, Washington Prime Group Inc. (WPG) [3]. Then, two financial services representatives placed fourth and sixth, Arlington Asset Investment Corp. (AI) [4] and Natixis (OTCPK:NTXFY) [6].

Two representatives in industrials placed fifth and seventh, LSC Communications Inc. [5] and Navios Maritime Acquisition Corp. (NNA) [7].

A single utilities member placed ninth, CESP - Companhia Energetica de Sao Paulo (OTCPK:CESDY) [9], which was followed by the lone basic materials sector representative in tenth Alumina Ltd. (OTCQB:AWCMY) [10] to complete the 10%+ yield top dog top ten for June 2019-20.

Actionable Conclusions: (21-30) Ten 10%+ Yield Top Dogs Showed 28.65% To 261.58% Upsides To June 2020; (22) Lowest Downsides Found Nine at 0%.

Source: YCharts

To quantify top yield rankings, analyst median 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 32.55% Advantage For 5 Highest Yield, Lowest Priced 10%+ Yield Top Dogs To June 2020

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

Source: YCharts

As noted above, top ten 10%+ yield top dogs selected 6/6/19 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 60.28% Vs. (26) 45.48% Net Gains From All Ten By June 6, 2020

Source: YCharts

$5,000 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 32.55% more net gain than $5,000 invested as $.5k in all ten. The fourth lowest priced 10%+ top yield WallStar, LSC Communications Inc., was projected by analysts to deliver the best net gain of 122.95%.

Source: YCharts

The five lowest-priced top 10%+ yield stocks as of June 6 were: Washington Prime Group Inc., Consolidated Communications Holdings Inc., GameStop Corp., LSC Communications Inc., CESP - Companhia Energetica de Sao Paulo (OTCPK:CESDY), with prices ranging from $3.99 to $5.20.

Five higher-priced 10%+ dividend top dogs from June 6 were: Navios Maritime Acquisition Corp., Alumina Ltd., Arlington Asset Investment Co., Summit Midstream Partners LP, Natixis, whose prices ranged from $6.23 to $45.38.

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.

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: dog-names-and-more.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.