Most Dividend Increases March 2 Set By Financial Services And Consumer Cyclicals Sectors
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 dogcatcher 3/2/2020 update for 82 of them.
- That week, Barron's listed 83 stocks boosting dividends. The increases ranged $0.00021 per M to $8.25 annually and ranged upward from 0.2% to 471.4% for this batch.
- Financial Services companies with nineteen hikes showed the most increases the past week. Next best was the consumer cyclical sector with fourteen.
- Ten top dividend-boosted stocks ranged 31.32% to 64.15% in net gains calculated from broker targets, including dividends less broker fees.
- $5k invested in this week's collection of lowest-priced five top-yield dividend-boosted dogs showed 8.23% more net-gain than that from $5k invested in all ten. Little, lower-priced dividend-boosted dogs ruled this early-March pack.
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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 March 2 data from Barron's for 82 dividend paying stocks as supplemented by dog catcher analysis powered by YCharts. YCharts could provide no additional data for one listing: Valley National Bancorp Pfd.A (VLYPP).
Actionable Conclusions (1-10): Analysts Estimated 32.32% To 64.15% Net Gains For Ten Top Dividend-Boosted Stocks Listed As Of March 2, 2021
Four of ten top 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 booster dogs was deemed 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 March 2, 2021, were:
Delek US Holdings Inc. (DK) was projected to net $641.54, based on the median of estimates from seventeen analysts, plus dividends, less broker fees. The Beta number showed this estimate subject to risk 75% more than the market as a whole.
Cinemark Holdings Inc. (CNK) was projected to net $559.92, based on the median of target estimates from twelve analysts, plus dividends, less broker fees. The Beta number showed this estimate subject to risk 22% less than the market as a whole.
Banco Bilbao Vizcaya Argentaria SA (BBVA) was projected to net $461.27, based on the median of target estimates from two analysts, plus dividends, less broker fees. The Beta number showed this estimate subject to risk 18% less than the market as a whole.
British American Tobacco PLC (BTI) was projected to net $419.17, based on the median of target price estimates from five analysts, plus annual dividend, less broker fees. The Beta number showed this estimate subject to risk 4% smaller than the market as a whole.
National CineMedia Inc. (NCMI) was projected to net $393.07, based on the median of target price estimates from six analysts, plus annual dividend, less broker fees. The Beta number showed this estimate subject to risk 45% less than the market as a whole.
EPR Properties (EPR) was projected to net $339.75, based on a median of target price estimates from eleven analysts plus annual dividends, less broker fees. The Beta number showed this estimate subject to risk 27% under the market as a whole.
Magna International Inc. (MGA) was projected to net $329.07, based on dividends, plus the median of target price estimates from twenty analysts, less broker fees. The Beta number showed this estimate subject to risk 43% over the market as a whole.
Ryman Hospitality Properties Inc. (RHP) was projected to net $315.48, based on dividends plus the median of target price estimates from eight analysts, less broker fees. The Beta number showed this estimate subject to risks 25% over the market as a whole.
Steel Dynamics Inc. (STLD) was projected to net $315.48, based on dividends alone, less broker fees. The Beta number showed this estimate subject to risks 40% over the market as a whole.
Dine Brands Global Inc. (PBT) was projected to net $313.23, based on dividends plus the median of target price estimates from seven analysts, less broker fees. The Beta number showed this estimate subject to risks 55% less than the market as a whole.
The average net gain in dividend and price was estimated at 40.88% on $10k invested as $1k in each of these ten stocks. These gain estimates were subject to average risks 4% greater than the market as a whole.
Source: mashable.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".
50 Dividend Boosted Stocks Showed Broker Target Gains
Source: YCharts.com
50 Dividend Boosted Stocks By Yield
Source: YCharts.com
Actionable Conclusions (11-20): Top Dividend Boosted Stocks By Yield
Top ten dividend boosted stocks reported in Barron's 3/2/2020 by yield represented five sectors and one variety of fund: one each from communication services, financial services, real estate, consumer defensive, two from consumer cyclical, and four closed end investment companies (CEICs).
Those single representatives from communication services, financial services, real estate, consumer defensive, and two from consumer cyclical, sectors placed second, fourth, seventh, ninth, fifth and tenth. They were: National CineMedia Inc. (NCMI) [2], Banco Bilbao Vizcaya Argentaria SA (BBVA) (4), EPR Properties (EPR) (7), British American Tobacco PLC (BTI) [9], Chico's FAS Inc. (CHS) (5) and Greif Inc. (GEF.B) [10].
Finally, the four closed end investment companies (CEICs)placed first third, sixth, and eighth, Wells Fargo Global Opportunity (EOD) [1], Wells Fargo Multi-Sector Income (ERC) [3]; Wells Fargo Income opportunity (EAD) [6]and Wells Fargo Utilities & High Income (ERH) [8], to complete the top ten on the March 2 Barron's boosted dividends list, by yield.
Actionable Conclusions: (21-30) Top Ten March 2 Dividend-Boosted Dogs Showed 27.19% To 59.12% Upsides With (31) No Down-Siders Detected In The Top 30
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 An 8.23% Advantage For 5 Highest Yield, Lowest Priced Dividend Boosted Stocks As Of 3/2/2021
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 3/2/20 showing the highest dividend yields represented five of eleven Morningstar sectors and closed end investment funds.
Actionable Conclusions: Analysts Predicted 5 Lowest-Priced Of The Top Ten Highest-Yield Dividend Booster Dogs (32) Delivering 22.74% Vs. (33) 21.01% Net Gains by All Ten Come March 2, 2021
Source: YCharts.com
$5,000 invested as $1k in each of the five lowest-priced stocks in the top ten dividend booster kennel by yield were predicted by analyst 1-year targets to deliver 8.823% more gain than $5,000 invested as $0.5k in all ten. The second lowest priced selection, Banco Bilbao Vizcaya Argentaria SA (BBVA) was projected by broker targets to deliver the best net gain of 46.13%.
Source: YCharts.com
The five lowest-priced top-yield dividend boosted dogs as of March 2 were: Chico's FAS Inc. (CHS); Banco Bilbao Vizcaya Argentaria SA (BBVA); Wells Fargo Dividend Global Opportunity (EOD); National CineMedia Inc. (NCMI); Wells Fargo Income Opportunity (EAD), with prices ranging from $3.80 to $8.00.
Five higher-priced dividend boosted dogs as of March 2 were: Wells Fargo Multi-Sector Income (ERC); Wells Fargo Utility & High Income (ERH); Greif Inc. (GEF.B); British American Tobacco PLC (BTI); EPR Properties (EPR), whose prices ranged from $12.26 to $60.82.
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
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: mashable.com
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