Kiplinger Calls These July International Aristocrats The Most Reliable Dividend Stocks On Earth

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Includes: ABBV, ADM, BTI, CM, CNQ, CVX, ENB, ENGGY, IMBBY, MRD, RDEIY, SKVKY, SNY, SU, T, WPP, XOM
by: Fredrik Arnold
Summary

Kiplinger Today, a "daily digest of timely, trusted advice" regularly lists opportunities for investors. This Worlds Most Reliable list was compiled by Kiplinger in October, 2018, data as of 7/3/19.

Kiplinger most-reliable long-term dividend-stocks are also known as “International Dividend Aristocrats,” they have raised dividends at least five straight-years (Canadian) 10 years (E.U.-based-firms) or 25 years (U.S. companies).

These 98 select dividend stocks ranged 0.49%-7.84% in annual yield and ranged -12.19%-103.84% in annual price target upsides per brokers 7/3/19.

Top Ten Kiplinger most reliable long-term dividend stocks boasted net gains from 14.22% to 39.02%.

$5k invested in the lowest-priced five top-yield Kiplinger most reliable dividend dogs showed 63.95% LESS net-gain than from $5k invested in all ten. Big high-price Kiplinger reliable dividend stocks led the pack.

Actionable Conclusions (1-10): Analysts Estimated 14.22% To 39.02% Net Gains For Ten Top International Dividend Aristocrat Dogs Into 2020

Four of these ten top Kiplinger most reliable dividend stocks by yield were among the top ten gainers for the coming year based on analyst 1-year target prices. (They are tinted gray in the chart below). Thus, the yield-based forecast for these July dogs was graded by Wall St. Wizards as 40% accurate.

Source: YCharts.com

Projections were based on estimated dividends from $1000 invested in each of the highest yielding stocks and their aggregate one year analyst median target prices, as reported by YCharts. Note: one year target prices by lone analysts were not applied. Ten probable profit-generating trades projected to July 3, 2020 were:

British American Tobacco (BTI) was projected to net $390.17, based on a median of target price estimate from five analysts, plus dividends, less broker fees. The Beta number showed this estimate subject to risk 14% less than the market as a whole.

Canadian Nat'l Resources (CNQ) was projected to net $342.65, based on a median of target price estimates from twenty-four analysts, plus annual dividend, less broker fees. The Beta number showed this estimate subject to risk 15% more than the market as a whole.

WPP PLC (WPP) was projected to net $324.94, based on the median of target estimates from two analysts, plus dividends, less broker fees. The Beta number showed this estimate subject to risk 6% more than the market as a whole.

Enbridge (ENB) was projected to net 212.51, based on dividends, plus the median of target price estimates from twenty-one analysts, less broker fees. The Beta number showed this estimate subject to risk 42% less than the market as a whole.

AbbVie Inc (ABBV) was projected to net $194.65, based on the median of target price estimates from fourteen analysts, plus annual dividend, less broker fees. The Beta number showed this estimate subject to risk 2% more than the market as a whole.

Sanofi SA (SNY) was projected to net $192.23, based on dividends, plus median target price estimates from five analysts, less broker fees. The Beta number showed this estimate subject to risk 44% less than the market as a whole.

Archer-Daniels Midland Co (ADM) was projected to net $190.85, based on dividends, plus a mean target price estimate from fourteen analysts, less broker fees. The Beta number showed this estimate subject to risk 3% more than the market as a whole.

Suncor Energy (SU) netted $174.42 based on the median of estimates from twenty-six analysts, plus dividends. The Beta number showed this estimate subject to risk, 9% more than the market as a whole.

Exxon Mobil Corp (XOM) was projected to net $151.87, based on dividends, plus a mean target price estimate from twenty-two analysts, less broker fees. The Beta number showed this estimate subject to risk 3% under the market as a whole.

Chevron (CVX) was projected to net $142.23 based on dividends, plus the median of target estimates form twenty-two brokers, less transaction fees. The Beta number showed this estimate subject to risk equal to the market as a whole.

The average net gain in dividend and price was estimated at 23.17% on $10k invested as $1k in each of these ten stocks. These gain estimates were subject to average risks 7% less than the market as a whole.

Source: luvmydogs.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".

98 Kiplinger Most Reliable Dividend Stocks On Earth By July Target Gains

98 Kiplinger Most Reliable Dividend Stocks On Earth By June Yield

Actionable Conclusions (11-20): 10 Top International Dividend Aristocrats By Yield

Top ten International Dividend Aristocrats selected 7/3/19 by yield represented seven of eleven Morningstar sectors. The first two places were claimed by two utilities sector representatives, Enagas SA (OTCPK:ENGGY) [1], and, Red Electrica Corporacion SA (OTCPK:RDEIY) [2].

The first of two financial services representatives emerged in third place by yield, Skandinaviska Enskilda Banken AB (OTCPK:SKVKY) [3]. The other financial entity placed tenth, Canadian Imperial Bank of Commerce (CM) [10].

Then, two consumer defensive representatives placed fourth and fifth, British American Tobacco PLC (BTI) [5], and Imperial Brands PLC (OTCQX:IMBBY) [6]. After that, a lone consumer cyclical representatives placed seventh WPP PLC (WPP) [7].

One from the energy sector placed seventh, Enbridge Inc (ENB) [7].

The lone communications services pup claimed eighth place, AT&T Inc (T) [8]. Finally, a single healthcare equity paced ninth, AbbVie Inc (ABBV) [9] to complete the Kiplinger most reliable dividend and International Aristocrats top ten by yield for July.

Actionable Conclusions: (21-30) Top Ten Kiplinger Most Reliable Dividend Dogs Showed 12.36%-33.8 Upsides While (31) One Lowly Downsider Sank To -3.73%

Source: YCharts.com

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

Analysts Forecast A 63.95% Disadvantage For 5 Highest Yield, Lowest Priced Kiplinger Most Reliable International Dividend Aristocrats To July 2020

Ten top Kiplinger most reliable dividend dogs were culled by yield for this update. Yield (dividend / price) results provided by YCharts did the ranking.

Source: YCharts.com

As noted above, top ten Kiplinger most reliable dividend (MRD) dogs screened 7/3/19 showing the highest dividend yields represented seven of eleven in the Morningstar sector scheme.

Actionable Conclusions: Analysts Predicted 5 Lowest-Priced Of The Top Ten Highest-Yield Kiplinger MRD Dogs (32) Delivering 5.38% Vs. (33 ) 14.92% Net Gains by All Ten Come July 2020

Source: YCharts.com

$5000 invested as $1k in each of the five lowest-priced stocks in the top ten Dividend Kiplinger most reliable dividend kennel by yield were predicted by analyst 1-year targets to deliver 63.95% LESS gain than $5,000 invested as $.5k in all ten. The seventh lowest priced selection, British American Tobacco PLC (BTI), was projected to deliver the best net gain of 39.02%.

Source: YCharts.com

The five lowest-priced top-yield Kiplinger most reliable international dividend aristocrat dogs as of July 3 were: Skandinaviska Enskilda Banken AB (OTCPK:SKVKY), Red Electrica Corporacion SA (OTCPK:RDEIY); Enagas SA (OTCPK:ENGGY); Imperial Brands PLC (OTCQX:IMBBY); AT&T Inc (T), with prices ranging from $9.57 to $33.98.

Five higher-priced Kiplinger most reliable international dividend aristocrat dogs as of July 3 were: Enbridge Inc (ENB); British American Tobacco PLC (BTI); WPP PLC (WPP); AbbVie Inc (ABBV); Canadian Imperial Bank of Commerce (CM), whose prices ranged from $36.25 to $79.72.

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.

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: luvmydogs.com

Disclosure: I am/we are long T. 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.