Seeking Alpha

52 Dividend Boosts Declared December 23 And 30

|
Includes: AVGO, CRT, FAM, GLO, GLQ, GLV, IVR, MTR, PFE, PRT, PVL, SVAUF, VET, WPC
by: Fredrik Arnold
Fredrik Arnold
Dividend investing, Growth, momentum, research analyst
Summary

Barron's Weekly posts a list of stocks announcing "dividend payment boosts" on the very last page of its financial data section. Here is your dog catcher Dec. 23 & 30, 2019 updates for 52.

The past two weeks Barron's listed 52 stocks boosting dividends. The increases ranged $0.0006 per month to $0.60 quarterly, and ranged 0.2% to 80.0% for this batch.

Closed End Investment Companies with nine hikes showed the most increases this week. Next best were the Real Estate sector firms with seven.

Ten top dividend-boosted stocks ranged 9.84% to 65.1% in net gains calculated from broker targets including dividends less broker fees.

$5k invested in this two week's collection of lowest-priced five top-yield dividend-boosted dogs showed 26.77% more net-gain than that from $5k invested in all ten.  Little, lower-priced dividend-boosted dogs ruled this late-December pack.

Foreword

Any collection of stocks is more clearly understood when subjected to yield-based (dog catcher) analysis, these dividend-boosted batches are perfect for the Arnold dog catcher process. Here is your December 23 and 30 data from Barron's for 52 of 53 dividend paying stocks as supplemented by dog catcher analysis powered by YCharts. The YCharts database failed to include the Pink Sheet listing for StorageVault Canada's (OTC:SVAUF) dividend boost in the final analysis.

Actionable Conclusions (1-10): Analysts Estimated 9.84% To 65.1% Net Gains For Ten Top Dividend-Boosted Stocks Listed To December 23 & 30, 2019

Seven of ten of these top dividend-boosted 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, this yield-based forecast for these booster dogs was deemed by Wall St. Wizards as 70% 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 December 23 & 30, 2019 were:

PermRock Royalty Trust (PRT) was projected to net $650.95, based on the median of estimates from two analysts, plus dividends, less broker fees. A beta number was not available for PRT.

Vermilion Energy Inc. (VET) was projected to net $291.53, based on the median of target estimates from seventeen analysts, plus dividends, less broker fees. The Beta number showed this estimate subject to risk 24% more than the market as a whole.

Mesa Royalty Trust (MTR) was projected to net $288.15, based on dividends plus the median of target price estimates from two analysts, less broker fees. The Beta number showed this estimate subject to risk 41% under the market as a whole.

W.P. Carey Inc. (NYSE:WPC) was projected to net $153.47, based on the median of target price estimates from ten analysts, plus annual dividend, less broker fees. The Beta number showed this estimate subject to risks 61% less than the market a s a whole.

Permianville Royalty Trust (NYSE:PVL) was projected to net $152.10, based on dividends alone, less broker fees. The Beta number showed this estimate subject to risk 40% over the market as a whole.

Pfizer Inc. (PFE) was projected to net $147.06, based on a median of target price estimates from fourteen analysts plus annual dividends, less broker fees. The Beta number showed this estimate subject to risk 34% under the market as a whole.

Broadcom Inc (AVGO) was projected to net $140.09, based on dividends, plus the median of target price estimates from thirty-five analysts, less broker fees. The Beta number showed this estimate subject to risk 10% under the market as a whole.

Clough Global Opportunities Fund (GLO) was projected to net $100.40, based on dividends alone, less broker fees. The Beta number showed this estimate subject to risks 11% over the market as a whole.

Clough Global Dividend And Income Fund (GLV) was projected to net $99.50, based on dividends alone, less broker fees. The Beta number showed this estimate subject to risks 14% under the market as a whole.

Clough Global Equity Fund (GLQ) was projected to net $98.40, based on dividends, less broker fees. The Beta number showed this estimate subject to risks equal to the market as a whole.

The average net gain in dividend and price was estimated at 21.22% on $10k invested as $1k in each of these ten stocks. These gain estimates were subject to average risks 9% less than the market as a whole.

Source: bzdogs.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".

52 Dividend Boosted Stocks Showed Broker Target Gains (or Losses)

Source: YCharts.com

52 Dividend Boosted Stocks By Yield

Source: YCharts.com

Actionable Conclusions (11-20): 10 Dividend Boosted Stocks By Yield

Top ten dividend boosted stocks reported in Barron's Dec. 23 & 30, 2019 by yield represented five energy firms, four closed-end funds, and one real estate representative.

The top dividend boosted equities this week were led by those five energy representatives in first through fourth and ninth places: Permianville Royalty Trust (1); PermRock Royalty Trust [2]; Vermilion Energy Inc. [3]; Mesa Royalty Trust (MTR) [4]; Cross Timbers Royalty Trust (CRT) [9].

Then the lone real estate equity placed fifth, Invesco Mortgage Capital Inc. (IVR) [5]. Finally, four closed-end investment companies (CEICs) placed sixth to eighth and tenth: Clough Global Opportunities Fund [6]; Clough Global Dividend And Income Fund [7]; Clough Global Equity Fund [8]; First Trust/Aberdeen Global Opportunity Income Fund (FAM) [10], to complete the December 23&30 dividend boosted list, by yield.

Actionable Conclusions: (21-30) Top Ten December 23 & 30 Dividend-Boosted Dogs Showed 1.7% To 53.02% Upsides While (31) Four Downsiders Dropped -2.26% to -4.86%

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 mean price target estimates became another tool to dig out bargains.

Analysts Forecast A 26.77% Advantage For 5 Highest Yield, Lowest Priced Dividend Boosted Stocks To Dec. 23 & 30, 2019

Ten top dividend-boosted 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 dividend boosted dogs screened Dec. 23 & 30, 2019 showing the highest dividend yields represented two of eleven Morningstar sectors and four funds.

Actionable Conclusions: Analysts Predicted 5 Lowest-Priced Of The Top Ten Highest-Yield Dividend Booster Dogs (32) Delivering 22.2% Vs. (33) 17.51% Net Gains by All Ten Come December 23 & 30, 2019

Source: YCharts.com

$5,000 invested as $1k in each of the five lowest-priced stocks in the top ten dividend dividend booster kennel by yield were predicted by analyst 1-year targets to deliver 26.77% more gain than $5,000 invested as $.5k in all ten. The second lowest priced selection, PermRock Royalty Trust, was projected by broker targets to deliver the best net gains of 65.1%.

Source: YCharts.com

The five lowest-priced top-yield dividend boosted dogs as of December 23 & 30 were: Permianville Royalty Trust, PermRock Royalty Trust, Mesa Royalty Trust, Cross Timbers Royalty Trust, Clough Global Opportunities Fund, with prices ranging from $1.89 to $9.42.

Five higher-priced dividend boosted dogs as of December 23 & 30 were: Clough Global Dividend And Income Fund, First Trust/Aberdeen Global Opportunity Income Fund, Clough Global Equity Fund, Vermilion Energy Inc., Invesco Mortgage Capital, Inc., whose prices ranged from $10.97 to $16.66.

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 Dividend Boosted stock purchase or sale research process. These were not recommendations.

Source: Barron's Weekly & YCharts.com

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; YCharts; finance.yahoo; analyst mean target price by YCharts. Dog photo: bzdogs.com

Disclosure: I am/we are long PFE, 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.