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98 Most Reliable Dividend Stocks On Earth: Kiplinger's International Aristocrats For Mid-October

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Includes: ABBV, ADM, BTI, CNQ, CVX, ENB, ENGGY, IMBBY, MEOH, MFGP, RDEIY, SKVKY, SU, T, WPP, XOM
by: Fredrik Arnold
Fredrik Arnold
Dividend investing, Growth, momentum, research analyst
Summary

Kiplinger Investing, offers "insights for investors" online. This World's Most Reliable list was compiled by Kiplinger in October 2018, data as of 10/18/19.

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

These 98 select dividend stocks ranged 0.55%-9.12% in annual yield and ranged -9.42%-154.27% in annual price target upsides per brokers 10/18/19.

Top Ten Kiplinger most reliable long-term dividend stocks boasted net gains from 16.69% to 45.34%.

$5k invested in the lowest-priced five top-yield Kiplinger most reliable dividend dogs showed 66.91% 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 16.64% To 35.93% Net Gains For Ten Top International Dividend Aristocrat Dogs Into October 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 Mid-October dogs was graded by Wall St. Wizards as 40% accurate.

Source: YCharts.com

Projections were based on estimated dividends from $1,000 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 October 18, 2020, were:

WPP PLC (WPP) was projected to net $359.27, based on the median of target estimates from two analysts, plus dividends, less broker fees. The Beta number showed this estimate subject to risk 2% more than the market as a whole.

British American Tobacco (BTI) was projected to net $322.08, based on a median of target price estimates 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 Natural Resources (CNQ) was projected to net $268.00, based on a median of target price estimates from twenty-six analysts, plus annual dividend, less broker fees. The Beta number showed this estimate subject to risk 16% more than the market as a whole.

Archer-Daniels-Midland Co. (ADM) was projected to net $233.68, based on dividends, plus a mean target price estimate from sixteen analysts, less broker fees. The Beta number showed this estimate subject to risk 7% more than the market as a whole.

Methanex Corp. (MEOH) was projected to net $230.59 based on dividends, plus the median of target estimates form fourteen brokers, less transaction fees. The Beta number showed this estimate subject to risk 77% over the market as a whole.

AbbVie Inc. (ABBV) was projected to net $215.24, based on the median of target price estimates from twelve analysts, plus annual dividend, less broker fees. The Beta number showed this estimate subject to risk 1% less than the market as a whole.

Chevron Corp. (CVX) was projected to net $212.43, based on dividends, plus median target price estimates from twenty-six analysts, less broker fees. The Beta number showed this estimate subject to risk 1% less than the market as a whole.

Exxon Mobil Corp. (XOM) was projected to net $190.74, based on dividends, plus a mean target price estimate from twenty-five analysts, less broker fees. The Beta number showed this estimate subject to risk 1% under the market as a whole.

Enbridge (ENB) was projected to net 181.08, based on dividends, plus the median of target price estimates from twenty-two analysts, less broker fees. The Beta number showed this estimate subject to risk 43% less than the market as a whole.

Suncor Energy (SU) netted $166.43 based on the median of estimates from twenty-seven analysts, plus dividends. The Beta number showed this estimate subject to risk, 6% more than the market as a whole.

The average net gain in dividend and price was estimated at 23.8% on $10k invested as $1k in each of these ten stocks. These gain estimates were subject to average risks 5% over the market as a whole.

Source: dogtrots.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 Mid-October Target Gains

Source: YCharts.com

98 Kiplinger Most Reliable Dividend Stocks On Earth By Mid-October Yield

Source: YCharts.com

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

Top ten International Dividend Aristocrats selected 10/18/19 by yield represented eight 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]. Then, two consumer defensive representatives placed third and seventh, British American Tobacco PLC (BTI) [3], and Imperial Brands PLC (OTCQX:IMBBY) [7].

In fourth place, a technology representative entered the top ten in the form of Micro Focus International PLC (MFGP) [4]. Then, a lone financial services representatives emerged in fifth place by yield, Skandinaviska Enskilda Banken AB (OTCPK:SKVKY) [5]. After that, a lone consumer cyclical representative placed sixth, WPP PLC (WPP) [6].

One from the energy sector placed eighth, Enbridge Inc. (ENB) [8]. A single healthcare equity paced ninth, AbbVie Inc. (ABBV) 9]. Finally, the lone communications services pup claimed tenth place, AT&T Inc. (T) [10] to complete the Kiplinger most reliable dividend and International Aristocrats top ten by yield for Mid-October.

Actionable Conclusions: (21-30) Top Ten Kiplinger Most Reliable Dividend Dogs Showed 12.99%-30.43 Upsides While (31) Three Lowly Downsiders Sagged To -3.01% To -4.60%

Source: YCharts.com

To quantify top dog rankings, analyst mean price target estimates provided 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 53.3% Disadvantage For 5 Highest Yield, Lowest Priced Kiplinger Most Reliable International Dividend Aristocrats To Mid-October 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 10/18/19 showing the highest dividend yields represented eight 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 6.64% Vs. (33) 14.22% Net Gains by All Ten Come Mid-October 2020

Source: YCharts.com

$5,000 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 53.3% LESS gain than $5,000 invested as $0.5k in all ten. The ninth lowest priced selection, British WPP PLC (WPP), was projected to deliver the best net gain of 35.93%.

Source: YCharts.com

The five lowest-priced top-yield Kiplinger most reliable international dividend aristocrat dogs as of October 18 were: Skandinaviska Enskilda Banken AB (OTCPK:SKVKY); Red Electrica Corporacion SA (OTCPK:RDEIY); Enagas SA (OTCPK:ENGGY); Micro Focus International PLC (MFGP); Imperial Brands PLC (OTCQX:IMBBY), with prices ranging from $9.68 to $24.08.

Five higher-priced Kiplinger most reliable international dividend aristocrat dogs as of October 18 were: British American Tobacco PLC (BTI); Enbridge Inc. (ENB); AT&T Inc. (T); WPP PLC (WPP); AbbVie Inc. (ABBV), whose prices ranged from $34.53 to $76.46.

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 International Aristocrat stock purchase or sale research process. These were not recommendations.

Graphs and charts were compiled by Rydlun & Co., LLC from data derived from Indexarb.com; YCharts.com; Yahoo Finance; analyst mean target price by YCharts. Dog photo: dogtrots.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.

Additional disclosure: 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.