44 10%-Plus Yield Dividend Stocks Priced $5-$25 For March

Summary

• Analyst top-10 target net-gain estimates for these bargain basement dogs 3/4/21 ranged 15.05%-60.54% from HMLP, FSKR, FSK, BPMP, KNOP, CHMI, DHT, SCU, MAGS, EURN, and top pick, USAC per YCharts.
• Top-10 10%+Yield@$5-$25 priced firms by yield, FSUMF, SCU, ORC, SRLP, SOLLY, IMBBF, SHLX, USAC, DHT, and top dog, EURN ranged 13.24%-19.14%. Expect more dividend adjustments in coming weeks.
• Top-10 10%+Yield@$5-$25 priced firms by broker-targets, CHMI, DHT, MFGP, BPMP, KNOP, SCU, EURN, TRMD, USAC, and top target dog, GEO averaged 40.08% estimated gains.
• $5k invested 3/4/21 in the lowest-priced five 10%+Yield@$5-$25 equities of 10 by yield, showed 7.07% less projected net-gain than from $5k put in all 10. The higher-priced bargain basement dividend dogs recaptured the lead going into March.
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Foreword

A reader of August 2019's high-yield, low-priced dividend dog list said this is "dangerous advice." Hence, this information is to be used at your own risk.

I always have 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 inaccurate. (Most of the time YCharts withholds forward yield projections when a dividend is cut, however... but not always.)

This March list selected stocks reporting annual returns ranging from -55.13% to 173.65%. Six selections this month showed yields greater than 20% and were removed because their dividends are the most likely to be cut or curtailed.

Happy hunting, and beware of the numbers put up by the top 10 by yield on this list of 44. In short, this is 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.

Meanwhile all 44 dogs on this list show dividends from a $1K investment greater than their single share prices. Some investors find this condition to be an invitation to buy or, at least, look closer.

Actionable Conclusions (1-10): Brokers Calculated 15.05% To 60.54% Net Gains For The Top Ten 10%+Yield@ $5-$25 Stocks As Of March 4, 2022

Four of the ten top yield 10%+Yield@$5-$25 dogs (tinted in the list below) were among the top ten gainers for the coming year, based on analyst one-year targets. Thus, this forecast, as graded by Wall St. Brokers, was 40% accurate.

Projections based on dividends from $1,000 invested in the highest yielding stocks and the median of analyst-estimated one-year target prices, as reported by YCharts, created the 2021-22 data points. Note: one-year target prices from lone analysts were not applied (n/a). Ten estimated profit-generating trades to March 4, 2022 were:

Source: YCharts

USA Compression Partners LP (USAC) was projected to net $605.43, based on dividends alone, less broker fees. The Beta number showed this estimate subject to risk/volatility 130% over the market as a whole.

Euronav NV (EURN) netted $460.00 based on dividends plus the median of target estimates from nine brokers, less broker fees. The Beta number showed this estimate subject to risk/volatility 57% under the market as a whole.

Sculptor Capital Management Inc (SCU) was projected to net $292.52, based on dividends plus the median of target estimates from three brokers, less broker fees. The Beta number showed this estimate subject to risk/volatility 42% greater than the market as a whole.

DHT Holdings Inc (DHT) was projected to net $284.76 based on dividends plus the median of target estimates from six brokers, less broker fees. The Beta number showed this estimate subject to risk/volatility 24% opposite the market as a whole.

Cherry Hill Mortgage Investment Corporation (CHMI) was projected to net $262.94 based on dividends, plus the median of prices estimated by four analysts, less broker fees. The Beta number showed this estimate subject to risk/volatility 22% over the market as a whole.

KNOT Offshore Partners LP (KNOP) was projected to net $257.49, based on dividends plus the median of prices estimated by three analysts, less broker fees. The Beta number showed this estimate subject to risk/volatility 33% over the market as a whole.

BP Midstream Partners LP (BPMP) was projected to net $234.03 based on dividends, plus the median of target estimates from seven brokers, less broker fees. A Beta number was not available for BPMP.

FS KKR Capital Corp (FSK) was projected to net $182.49 based on dividends plus the median of prices estimated by seven analysts, less broker fees. The Beta number showed this estimate subject to risk/volatility 61% over the market as a whole.

FS KKR Capital Corp II (FSKR) was projected to net $157.78, based on dividends plus the median of prices estimated by three analysts, less broker fees. A Beta number was not available for FSKR.

Hoegh LNG Partners LP (HMLP) was projected to net $150.46, based on dividends plus the median of prices estimated by six analysts, less broker fees. The Beta number showed this estimate subject to risk/volatility 85% over the market as a whole.

The average net gain in dividend and price was estimated at 28.88% on $10k invested as $1k in each of these ten stocks. This gain estimate was subject to average risk/volatility 19% more than the market as a whole.

Actionable Conclusion (11): (Bear Alert) Analysts Predicted One Top 10%+Yield@$5-$25 Dog To Show A -7.63% Loss To March 4, 2022

The probable losing trade revealed by Y-Charts to 2022 was:

Source: YCharts.com

Global Partners LP (GLP) projected a loss of $76.26 based on dividend and a median of the target price estimates from seven analysts including broker fees. The Beta number showed this estimate subject to risk/volatility 14% over the market as a whole.

Source: youtube.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."

44 Broker Price Target Upsides

Source:YCharts

44 10%+Yield@$5-$25 TopDogs By Yield

Source:YCharts

Actionable Conclusions (11-20) Top Ten 10%+Yield@$5-$25 Dog Yields Ranged 13.24%-19.14%

Top 10 10%+Yield@$5-$25 dogs selected 2/10/21 by yield represented five of eleven Morningstar sectors.

Five representatives from the energy sector placed first through fourth, and seventh: Euronav NV [1]; DHT Holdings Inc [2]; USA Compression Partners LP [3]; Shell Midstream Partners LP (SHLX) [4]; Sprague Resources LP (SRLP) [7].

Then, a lone consumer defensive representative placed fifth, Imperial Brands PLC (OTCQX:IMBBF) [5], and thereafter, two real estate firms were in the sixth and eighth places, Shui On Land Ltd (OTCPK:SOLLY) [6], and Orchid Island Capital Inc (ORC) [8].

Finally, one representative from the financial services sector placed ninth and another for the basic materials sector placed tenth, Sculptor Capital Management Inc [9], and Fortescue Metals Group Ltd (OTCQX:FSUMF) [10]. These completed the 10%+Yield@$5-$25 top ten for March, 2021-22.

Actionable Conclusions: (21-30) Ten 10%+Yield@$5-$25 Top Yield Stocks Showed 0% To 46.85% Upsides To March 4, 2022 and (31) Six Down-siders Hit Bottoms Of -0.73-17.52%

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 7.07% Disadvantage For 5 Highest Yield, Lowest Priced Of Ten 10%+Yield@$5-$25 Dogs To March 4, 2022

Ten top 10%+Yield@$5-$25 dogs were culled by yield for this March update. Yield (dividend/price) results verified by YahooFinance did the ranking.

Source:YCharts

As noted above, top ten 10%+Yield@$5-$25 Priced dogs selected 3/4/21 showing the highest dividend yields represented five of eleven sectors in the Morningstar scheme.

Actionable Conclusions: Analysts Estimated 5 Lowest-Priced Of Top Ten Highest-Yield 10%+Yield@$5-$25 Dogs (32) Delivering 21.96% Vs. (33) 23.63% Net Gains From All Ten By March 4, 2022

Source:YCharts

$5,000 invested as $1k in each of the five lowest-priced stocks in the top ten 10%+Yield@$5-$25 dogs collection was predicted by analyst one-year targets to deliver 7.07% less net gain than $5,000 invested as $.5k in all ten. The sixth lowest priced, USA Compression Partners, was projected by analysts to deliver the best net gain of 60.54%.

Source:YCharts

The five lowest-priced top 10%+Yield@$5-$25 dogs as of March 4 were: Orchid Island Capital; DHT Holdings Inc; Shui On Land Ltd ; Euronav NV ; Shell Midstream Partners LP, with prices ranging from $5.59 to $12.54.

Five higher-priced >10%Yield@$5-$25 Priced dogs from March 4 were: USA Compression Partners LP; Fortescue Metals Group Ltd; Imperial Brands PLC; Sprague Resources LP; Sculptor Capital Management Inc, whose prices ranged from $14.30 to $20.79.

The distinction between five low-priced dividend dogs and the general field of 10 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 listing by yield of all 44 10%+Yield stocks priced at $5-$25 from YCharts as of 2/10/21.

44 10%+Yield@$5-$25 TopDogs By Yield For March

Source: YCharts

Note: All 44 dogs on this list show dividends from a $1K investment greater than their single share prices. Some investors find this condition to be an invitation to buy or, at least, look closer.

Stocks listed above were suggested only as possible reference points for your 10%Yield@$5-$25 Priced dividend dog purchase or sale research process. These were not recommendations.

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. "

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: youtube.com.

Editor's Note: This article discusses one or more securities that do not trade on a major U.S. exchange. Please be aware of the risks associated with these stocks.

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.