- Barron's Weekly lists the stocks announcing "dividend payment boosts" on the last page of its financial data section. Here is your dogcatcher 4/27-5/4 rundown for 34 proclaimed those past two weeks.
- Increases announced the past two weeks ranged $0.0006 per M by EVLMC, to $0.4000 quarterly by JBSS and ranged upward from 0.6% by HCSG and IBM, to 78.6% by NEM.
- Financial Services companies with seven hikes, Energy with six, and Industrials and utilities with five each, showed the most increases for the past two weeks.
- 10 top dividend-boosted stocks ranged from 16.87% to 44.68% in estimated net gains calculated from broker targets (including dividends less broker fees).
- $5k invested in the lowest-priced five in this collection of top yield 10 dividend-boosted dogs showed 0.15% LESS net gain than that from $5k invested in all 10. Bigger, higher-priced dividend-boosted dogs barely ruled this half and half April/May two-week booster pack.
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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 April 27 and May 4 combined data from Barron's for 34 dividend-paying stocks as supplemented by analysis powered by YCharts as of May 5.
Watch this space (as the current uncertainty flourishes) for those brave corporations raising payouts in the face of wavering popularity as measured by stock prices.
Actionable Conclusions (1-10): Analysts Estimated 24.37% To 77.82% Net Gains For 10 Top Dividend-Boosted Stocks Listed As Of 3/30-4/20, 2020
Four of 10 top stocks by yield were among the top 10 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 boosted dividend dogs was deemed by Wall St. Wizards as 40% accurate.
Projections were based on estimated dividends from $1k 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. 10 probable profit-generating trades projected to May 5, 2021 were:
Sociedad Quimica Y Minera De Chile SA (SQM) was projected to net $446.79, based on the median of estimates from 15 analysts, plus dividends, less broker fees. The Beta number showed this estimate subject to risk 8% less than the market as a whole.
Hess Midstream LP (HESM) was projected to net $431.93, based on the median of target estimates from five analysts, plus dividends, less broker fees. A Beta number was not available for HESM.
Ardagh Group SA (ARD) was projected to net $411.09, based on the median of target estimates from nine analysts, plus dividends, less broker fees. A Beta number was not available for ARD.
Delek Logistics Partners LP (DKL) was projected to net $399.91, based on the median of target price estimates from four analysts, plus annual dividend, less broker fees. The Beta number showed this estimate subject to risk 185% more than the market as a whole.
UGI Corp (UGI) was projected to net $376.16, 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 5% less than the market as a whole.
Raytheon Technologies Corp. (RTX) was projected to net $345.93, based on a median of target price estimates from 22 analysts plus annual dividends, less broker fees. The Beta number showed this estimate subject to risk 33% over the market as a whole.
MetLife Inc. (MET) was projected to net 307.20, based on dividends, plus the median of target price estimates from 15 analysts, less broker fees. The Beta number showed this estimate subject to risk 33% over the market as a whole.
Kinder Morgan Inc. (KMI) was projected to net $254.18, based on dividends plus the median of target price estimates from 15 analysts, less broker fees. The Beta number showed this estimate subject to risks 4% greater than the market as a whole.
The Travelers Companies Inc. (TRV) was projected to net $230.06, based on dividends plus the median of target price estimates from 22 analysts, less broker fees. The Beta number showed this estimate subject to risks 12% below the market as a whole.
Qualcomm Inc. (QCOM) was projected to net $168.68, based on dividends plus the median of target price estimates from 29 analysts, less broker fees. The Beta number showed this estimate subject to risks 38% greater than the market as a whole.
The average net gain in dividend and price was estimated at 33.72% on $10k invested as $1k in each of these 10 stocks. These gain estimates were subject to average risks 34% more than the market as a whole.
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."
28 Of 34 Dividend Boosted Equities Showed Broker Target Gains
34 Dividend Boosted Equities By Yield
Actionable Conclusions (11-20): Top Dividend Boosted Stocks By Yield
Top 10 dividend boosted stocks reported in Barron's 4/27-5/4 by yield represented four sectors.
Six representatives from energy placed first through third, and fifth through seventh, Delek Logistics Partners LP , Dorchester Minerals LP (DMLP) , Hess Midstream LP , and Cheniere Energy Partners LP (CQP) , Kinder Morgan Inc. , and Star Group LP (SGU) .
A single basic materials representative took fourth place, Enviva Partners LP (EVA) . Then, two representatives financial services, placed eighth and ninth, People's United Financial Inc. (PBCT) , and MetLife .
Finally, one technology representative placed tenth, International Business Machines Corp. (IBM) , to complete the top 10 on the April 27-May 4 Barron's boosted dividends list, by yield.
Actionable Conclusions: (21-30) Top 10 April 27-May 4 Dividend-Boosted Dogs Showed 14.52% To 41.13% Upsides With (31) One -5.15% Downsider Detected
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 0.15% Disadvantage For Five Highest Yield, Lowest-Priced Dividend-Boosted Stocks To 5/4/21
10 top dividend-boosted dogs assembled 4/27-5/4 were culled by yield for this update. Yield (dividend/price) results provided by YCharts did the ranking.
Actionable Conclusions: Analysts Predicted Five Lowest-Priced Of The Top 10 Highest Yield Dividend Booster Dogs (32) Delivering 20.79% Vs. (33) 20.82% Net Gains by All 10 Come May 4, 2021
$5k invested as $1k in each of the five lowest-priced stocks in the top 10 dividend booster kennel by yield were predicted by analyst one-year targets to deliver 0.15% LESS gain than $5k invested as $.5k in all 10. The fourth lowest-priced selection, Hess Midstream LP was projected by broker targets to deliver the best net gain of 43.19%.
The five lowest-priced top-yield dividend boosted dogs as of 4/27-5/4 were: Star Group LP, Dorchester Minerals LP, People's United Financial Inc., Hess Midstream LP, and Kinder Morgan Inc. with prices ranging from $7.68 to $14.95.
Five higher-priced dividend boosted dogs as of 4/27-5/4 were: Delek Logistics Partners LP, MetLife Inc., Cheniere Energy Partners LP, Enviva Partners LP, and International Business Machines Corp. whose prices ranged from $17.42 to $122.58.
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.
Afterword: The Actual List From April 27-May 5
Source: Barron's Weekly & YCharts.com
Stocks listed above were suggested only as possible reference points for your Dividend Boosted stock purchase or sale research process. These were not recommendations.
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: kimblechartingsolutions.com
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