72 10%+Yield Dividend Dogs Priced $5-$15 In June
Summary
- These dividend dog 10%+Yield@$5-$15 prices are all sourced from YCharts which allows a dividend yield to persist for 365 days after the most recent report if a dividend is cut.
- Analyst top-ten target net-gain estimates for these bargain basement dogs 6/11/20 ranged 30.82%-90.74% from ACRE, SPH, RC, KRP, DHT, KNOP, SVC, HMLP, USAC, and top pick, FRO, per YCharts dividend.
- Top-ten 10%+Yield@$5-$15 priced firms by yield, SVC, USAC, TRTX, BPOSY, RWT, RC, OMP, DHT, KPELY, and top dog, FRO ranged 18.31%-37.28%. Expect more dividend-reductions and cancellations in coming weeks.
- Top-ten 10%+Yield @ $5-$15 priced firms by broker-targets, LADR, KNOP, HMLP, AROC, PBFX, FRO, EURN, SSSS, USAC, and top target dog, RVI averaged 65.47%.
- $5k invested 6/11/20 in the lowest-priced five 10%+Yield @ $5-$15 equities of ten by yield, showed 8.83% more projected net-gain than from $5k put in all ten. The low-price bargain basement dividend dogs retained their lead into June.
- Looking for a portfolio of ideas like this one? Members of The Dividend Dog Catcher get exclusive access to our model portfolio. Get started today »
Foreword
A reader of August's high-yield, low priced dividend dog list said this is "dangerous advice". Hence, it is to be used at your own risk.
I have always advised that high dividends are a sure sign of high risk. Combine that signal with a low-price offer and you have the stuff of legends and horror stories. Especially in light of YCharts declaration that YCharts allows a dividend yield to persist for 365 days after the most recent reported dividend if a dividend is cut. Therefore, a few line items you see calculated here could be totally inaccurate.
This June list, unlike those previously posted, selected no stocks reporting annual returns lower than 0%. Eight this month showed yields greater than 20%. These were not removed, though their dividends are the most likely to be cut or curtailed.
Happy hunting, and beware of the numbers put up by the top eight by yield on this list of 72. In short, this is a risky business. These are Dogs of the Low, not of the Dow. These dogcatcher metrics are set to snag the most unloved and unpopular curs as a contrarian stock selection strategy.
To learn which of these 72 are 'safer' dividend dogs in the next few days, click on the "get started today" link in the last summary bullet above and read The Dividend Dogcatcher marketplace follow-up 'safer' 10%+Yield@$5-$15 dividend stock article.
Actionable Conclusions (1-10): Brokers Calculated 30.82% To 90.74% Net Gains For Ten 10%+Yield @ $5-$15 Stocks As Of June 11, 2021
Five of the ten top yield 10%+Yield @ $5-$15 dogs were among the top ten gainers for the coming year (based on analyst 1-year targets). So, this forecast, as graded by Wall St. Brokers, was 50% accurate.
Projections based on dividends from $1,000 invested in the highest yielding stocks and aggregate one-year analyst median target prices of those stocks, as reported by YCharts, created the 2020 data points. Note: one-year target prices from single analysts were not applied (n/a). Ten estimated profit-generating trades to June 11, 2021, were:
Source: YCharts
Frontline Ltd. (FRO) netted $907.41 based on dividends plus the median of target estimates from five brokers, less broker fees. The Beta number showed this estimate subject to risk 54% under the market as a whole.
USA Compression Partners LP (USAC) was projected to net $892.66 based on dividends, plus the median of target estimates from seven brokers, less broker fees. The Beta number showed this estimate subject to risk 143% over the market as a whole.
Hoegh LNG Partners (HMLP) was projected to net $527.87, based on dividends, plus the median of target price estimates from seven analysts, less broker fees. The Beta number showed this estimate subject to risk 97% over the market as a whole.
Service Properties Trust (SVC) was projected to net $558.49 based on estimated dividends, plus the median of target estimates from three brokers, less broker fees. The Beta number showed this estimate subject to risk 97% greater than the market as a whole.
KNOT Offshore Partners LP (KNOP) was projected to net $536.26 based on dividends, plus the median of prices estimated by two analysts, less broker fees. The Beta number showed this estimate subject to risk 46% over the market as a whole.
DHT Holdings Inc. (DHT) was projected to net $515.10, based on the median of prices estimated by six analysts, plus dividends, less broker fees. The Beta number showed this estimate subject to risk 17% opposite the market as a whole.
Kimbell Royalty Partners LP (KRP) was projected to net $497.14 based on dividends plus the median of prices estimated by ten analysts, less broker fees. A Beta number was not available for KRP.
Ready Capital Corp. (RC) was projected to net $452.80, based on dividends plus the median of prices estimated by six analysts, less broker fees. The Beta number showed this estimate subject to risk 4% under the market as a whole.
Suburban Propane Partners (SPH) was projected to net $372.79, based on the median of prices estimated by five analysts, plus dividends, less broker fees. The Beta number showed this estimate subject to risk 9% over the market as a whole.
Ares Commercial Real Estate Corp. (ACRE) was projected to net $308.19, based on dividends plus the median of prices estimated by five analysts, less broker fees. The Beta number showed this estimate subject to risk 19% over the market as a whole.
The average net gain in dividend and price was estimated at 56.14% on $10k invested as $1k in each of these ten stocks. This gain estimate was subject to average risk 1% greater than the market as a whole.
Actionable Conclusion (11): (Bear Alert) Analysts Predicted One Top 10%+Yield @ $5-$15 Dog To Show A -4.02% Loss To June 11, 2021
The probable losing trade revealed by YCharts to 2021 was:
Source: YCharts.com
Oasis Midstream Partners LP (OMP) projected a loss of $40.22 based on dividend and a median of the target price estimates from five analysts including broker fees. A Beta number was not available for OMP.
Source: barkpost.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 Broker Price Target Upsides
Source: YCharts
50 10%+Yield @ $5-$15 Top Dogs By Yield
Source: YCharts
Actionable Conclusions (11-20) Top Ten 10%+Yield @ $5-$15 Dog Yields Ranged 18.31%-37.28%
Top ten 10%+Yield @ $5-$15 dogs selected 6/11/20 by yield represented three of eleven Morningstar sectors.
The first and three others from the energy sector placed third, fourth and ninth. Tops was Frontline Ltd. (FRO) [1], followed by DHT Holdings Inc. (DHT) [3]; Oasis Midstream Partners LP (OMP) [4]; USA Compression Partners LP (USAC) [9].
Then, two industrials representative stocks placed second and seventh, Keppel Corporation Ltd. (OTCPK:KPELY) [2], and Bpost SA De Droit Public (OTCPK:BPOSY) [7].
Finally, the last four stocks of the ten by yield were from the real estate sector and placed fifth, sixth, eighth, and tenth: Ready Capital Corp. (RC) [5]; Redwood Trust Inc. (RWT) [6]; TPG RE Finance Trust Inc. (TRTX) [8]; Service Properties Trust (SVC) [10], to complete the 10%+Yield @ $5-$15 top ten for June 2020-21.
Actionable Conclusions: (21-30) Ten 10%+Yield @ $5-$15 Top Yield Stocks Showed 36.97% To 71.33% Upsides To June 2021
Source: YCharts
To quantify top yield rankings, analyst median price target estimates provided 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 Estimated A 8.83% Advantage For 5 Highest Yield, Lowest Priced Of Ten 10%+Yield @ $5-$15 Dogs To June 2021
Ten top 10%+Yield @ $5-$15 dogs were culled by yield for this June update. Yield (dividend/price) results verified by Yahoo Finance did the ranking.
Source: YCharts
As noted above, top ten 10%+Yield @ $5-$15 Priced dogs selected 6/11/20 showing the highest dividend yields represented three of eleven sectors in the Morningstar scheme.
Actionable Conclusions: Analysts Estimated 5 Lowest-Priced Of Top Ten Highest-Yield 10%+Yield @ $5-$15 Dogs (31) Delivering 46.07% Vs. (32) 42.33% Net Gains From All Ten By June 11, 2021
Source: YCharts
$5,000 invested as $1k in each of the five lowest-priced stocks in the top ten 10%+Yield @ $5-$15 dogs collection was predicted by analyst 1-year targets to deliver 8.83% more net gain than $5,000 invested as $0.5k in all ten. The fourth lowest priced, Frontline Ltd. (FRO), was projected by analysts to deliver the best net gain of 90.74%.
Source: YCharts
The five lowest-priced top 10%+Yield @ $5-$15 dogs as of June 11 were: DHT Holdings Inc. (DHT); Redwood Trust Inc. (RWT); Bpost SA De Droit Public (OTCPK:BPOSY); Frontline Ltd. (FRO); Ready Capital Corp. (RC), with prices ranging from $5.77 to $7.52.
Five higher-priced >10%Yield @ $5-$15 Priced dogs from June 11 were: Keppel Corporation Ltd. (OTCPK:KPELY); TPG RE Finance Trust Inc. (TRTX); Service Properties Trust (SVC); Oasis Midstream Partners LP (OMP); USA Compression Partners LP (USAC), whose prices ranged from $8.37 to $11.09.
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
Below is the alphabetical by symbol listing of all 72 May 10%+Yield stocks priced at $5-$15 from YCharts as of 6/11/20.
Source: YCharts
Stocks listed above were suggested only as possible reference points for your 10% Yield @ $5-$15 Priced dividend dog purchase or sale research process. These were not recommendations.
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 YCharts. Dog photo: barkpost.com
Get The 10%+ Dividend Yield 'Safer' Dividend Dog Story
Click here to subscribe to The Dividend Dogcatcher. Get a free trial, more information, and the follow-up to this article.
Catch A Dog On Facebook At 8:45 AM every NYSE trade day on Facebook/Dividend Dog Catcher, in the Underdog Daily Dividend Show!
Root for the Underdog. Comment below on any stock ticker to make it eligible for my next FA follower report.
This article was written by
Fredrik Arnold is a retired quality service analyst sharing investment ideas with a primary focus on dividend yields by utilizing free cash flow and one-year total returns as trading indicators.
He is the leader of the investing group The Dividend Dog Catcher, where he shares a minimum of one new dividend stock idea per week with focus on yield or extraordinary financial circumstances. All ideas are archived and available after weekly announcement. Learn more.Analyst’s Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. 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.
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.
In addition my YCharts data supplier makes no warrants regarding their forward looking dividend accuracy. Here is their dividend yield statement: "2) We allow a dividend yield to persist for 365 days after the most recent reported dividend if a dividend is cut. Hence, this data should not be used for backtesting purposes. For true historical testing purposes, one would need the date the company announced a cut or increase in the dividend to get the proper expected dividend yield as of a given date."
"The forward yield won't catch changes as there is not an automated method for turning those announcements into that kind of data. A specific use case would require additional over-site after the screening had taken place to catch these instances. I wish there was an easier way, and I will submit feedback, but as of yet this has been how we've always done things for lack of a better method."
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Recommended For You
Comments (6)
