Seven Buyable Reliable Retiree Stocks For October Per Kiplinger Reports
Summary
- Kiplinger Investing, periodically lists retirement tips. This 30 stock list is from two articles. One by Brian Bollinger, updated 5/7/21 and another by Deborah Yao, 4/30/21.
- The articles were titled, '20 for 20 Retirement Years', and '10 Super-safe Dividend Stocks'.
- Those 30 select dividend stocks ranged 0.60% to 8.39% in annual yield and ranged -7.35% to 30.64% in annual price-target downsides and upsides per brokers reported by YCharts 9/24/21.
- Top Ten reliable retiree dividend stocks, PNW, WPC, O, ENB, NNN, BBY, ORI, CVX, EBF, & EPD boasted net projected gains from 15.78% to 37.93% going into October.
- $5k invested in the lowest-priced five of ten of these top-yield reliable retirement dividend dogs showed 15.31% more net-gain than from $5k invested in all ten. The little (lower-priced) reliable retirement dogs continued to lead this pack into October.
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Foreword
This article is based on two Kiplinger investing articles aimed at retirees:
20 Dividend Stocks to Fund 20 Years of Retirement, (yielding roughly 4% or higher), updated 5/7/21, by Brian Bollinger, "...should fund at least 20 years of retirement, if not more. They have paid uninterrupted dividends for more than 20 consecutive years, appear to have secure payouts and have the potential to collectively grow... dividends to protect investors’ purchasing power."
10 Super-Safe Dividend Stocks by Deborah Yao, published 4/30/21, featured "every stock on this list earns the highest DIVCON rating of 5. We've further culled the list down to 10 stocks that offer a total dividend and buyback yield of at least 2%, and price-to-earnings (P/E) ratios in the trailing 12 months that are below or on par with the broader market.”
Any collection of stocks is more clearly understood when subjected to yield-based (dog catcher) analysis, these Kiplinger reliable dividend stocks for retirees are perfect for the dogcatcher process. Here is the September 24 data for the 30 stocks in the Kiplinger-sourced collection.
The Ides of March 2020 plunge in the stock market took its toll, yet most of these retiree selections bounded back beyond broker targets.
The following 7 (as of September 24) continue to live up to the Dogcatcher ideal of delivering annual dividends from a $1K investment in excess of their single share prices: Enterprise Partners LP (EPD); Enbridge Inc (ENB); Pembina Pipeline Corp (PBA); Ennis Inc (EBF); National Retail Properties Inc (NNN); Old Republic International Corp (ORI); Monmouth Real Estate Investment (MNR). Many investors regard this condition as a "look closer to maybe buy" signal.
To learn which of these seven are 'safer' dividend dogs, migrate to my Dividend Dogcatcher marketplace here on the Alpha site after October 4th. There you'll find a follow-up 'safer' Reliable Retiree dividend stock summary and also garner a look at all my postings. Get your free trial, then opt for a subscription to my Dividend Dogcatcher marketplace service.
Actionable Conclusions (1-10): Analysts Estimated 15.78% To 37.93% Net Gains For Ten Top Reliable Retirement Dividend Dogs To October, 2022
Seven of ten top Kiplinger most reliable retirement 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 October dogs was graded by Wall St. Wizards as 70% accurate.
Estimated dividends from $1000 invested plus their aggregated one-year analyst median target prices, as reported by YCharts, composed the metrics for the projections below. Note: target prices by lone-analysts were not applied. Ten probable profit-generating trades projected to September 24, 2022 were:
Source: YCharts.com
Enterprise Products Partners LP was projected to net $379.26, based on the median of target price estimates from twenty-four analysts, plus annual dividend, less broker fees (if any). The Beta number showed this estimate subject to risk/volatility 40% more than the market as a whole.
Ennis Inc was projected to net $316.99 based on dividends, plus the median of target estimates from two brokers, less transaction fees. The Beta number showed this estimate subject to risk/volatility 44% less than the market as a whole.
Chevron Corp (CVX) was projected to net $259.01, based on dividends, plus the median of target price estimates from twenty-eight analysts, less broker fees. The Beta number showed this estimate subject to risk/volatility 32% greater than the market as a whole.
Old Republic International Corp was projected to net $246.22, 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/volatility 15% less than the market as a whole.
Best Buy Co Inc (BBY) was projected to net $239.73, based on dividends, plus the median of target price estimates from twenty-nine analysts, less broker fees. The Beta number showed this estimate subject to risk/volatility 52% greater the market as a whole.
National Retail Properties Inc was projected to net $222.33, based on the median of target price estimates from fourteen analysts, plus annual dividend, less broker fees. The Beta number showed this estimate subject to risk/volatility 17% less than the market as a whole.
Enbridge Inc was projected to net $205.24, based on dividends, plus median target price estimates from twenty-three analysts, less broker fees. The Beta number showed this estimate subject to risk/volatility 12% under the market as a whole.
Realty Income Corp (O) was projected to net $204.73, based on a median of target price estimates from twenty analysts, plus dividends, less broker fees. The Beta number showed this estimate subject to risk/volatility 36% less than the market as a whole.
W.P. Carey Inc (WPC) was projected to net $204.52, based on the median of target estimates from ten analysts, plus dividends, less broker fees. The Beta number showed this estimate subject to risk/volatility 29% under the market as a whole.
Pinnacle West Capital (PNW) was projected to net $157.78, based on dividends, plus the median of the target price estimates from fifteen analysts, less broker fees. The Beta number showed this estimate subject to risk/volatility 70% under the market as a whole.
The average net gain in dividend and price was estimated at 24.36% on $10k invested as $1k in each of these ten stocks. These gain estimates were subject to average risk/volatility 9% under the market as a whole.
Source: Open source dog art from dividenddogcatcher.com
The Dividend Dogs Rule
Stocks earned the "dog" moniker by exhibiting three traits: (1) paying reliable, repeating dividends, (2) their prices fell. So, (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".
27 Kiplinger Reliable Retirement Dividend Stocks Show October Target Gains
Source: YCharts.com
30 Kiplinger Reliable Retirement Dividend Stocks Anticipate October Yields
Source: YCharts.com
Actionable Conclusions (11-20): 10 Top Kiplinger Reliable Retirement Dividend Stocks By Yield For October
Top ten October Reliable Retirement Dividend stocks represented five of eleven Morningstar sectors.
Four energy stocks occupied first through third and fifth places: Enterprise Products Partners LP [1], Enbridge Inc [2], Pembina Pipeline Corp [3], and Chevron Corp [5].
Fourth place went to the first of three real estate sector representatives, W.P. Carey Inc [4]. The others placed seventh and eighth, Universal Health Realty Income Trust (UHT) [7], and National Retail Properties Inc [8].
One lone industrials entity placed sixth, Ennis Inc [6], and a single communication services representative placed ninth, Verizon Communications Inc (VZ) [9].
Finally tenth place was claimed by the lone utilities representative, Pinnacle West Capital Corp [10], to complete the reliable retirement top ten dividend dogs by yield for October.
Actionable Conclusions: (21-30) Ten Top Reliable Retirement Dividend Dogs Showed 14.91%-30.54% Upsides While (31) Two Poor Down-siders Slumped Into October
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 median target price estimates became another tool to dig out bargains.
Analysts Forecast A 15.31% Advantage For The 5 Highest Yield, Lowest Priced Of Top Ten Reliable Retirement Dividend Stocks Come October, 2022
Yield (dividend/price) results provided by YCharts sourced the ranking for these ten top reliable retirement dividend dogs.
Source: YCharts.com
As noted above, top ten Kiplinger reliable retirement dogs screened 9/24/21 showed the highest dividend yields and represented five of eleven in the Morningstar sector scheme.
Actionable Conclusions: Analysts Predicted 5 Lowest-Priced Of The Top-Ten Highest-Yield Reliable Retirement Dividend Dogs (32) Delivering 21.98% Vs. (33) 19.1% Net Gains by All Ten Come October, 2022
Source: YCharts.com
$5000 invested as $1k in each of the five lowest-priced stocks in the top ten reliable retirement dividend kennel by yield were predicted by analyst 1-year targets to deliver 15.31% more gain than $5,000 invested as $.5k in all ten. The second lowest priced selection, Enterprise Products Partners LP, was projected to deliver the best net gain of 37.93%
Source: YCharts.com
The five lowest-priced top-yield Kiplinger most-reliable retiree dividend dogs as of September 24 were: Ennis Inc; Enterprise Products Partners LP; Pembina Pipeline Corp; Enbridge Inc; National Retail Properties Inc, with prices ranging from $18.84 to $44.16.
Five higher-priced Kiplinger top yield reliable retirement dividend dogs as of September 24 were: Verizon Communications Inc; Universal Health Realty Income Trust; Pinnacle West Capital Corp; W.P. Carey Inc; Chevron Corp, whose prices ranged from $54.37 to $100.60.
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
If somehow you missed the suggestion of the six stocks ripe for picking at the start of this article, here is a reprise of the list at the end:
Seven Ripe for Picking
The above 7 (as of September 24) live up to the Dogcatcher ideal of having annual dividends from a $1K investment exceed their single share prices. Many investors regard this condition as a "look closer to maybe buy" signal.
To learn which of these half-dozen are 'safer' dividend dogs, follow the instructions in the last bullet point at the top of this article to click your way to my Dividend Dogcatcher marketplace. There, after October 4, you'll find a follow-up 'safer' Reliable Retiree dividend stock summary and get a free look at all my postings in the Seeking Alpha Marketplace. Get your free trial and start a subscription to my Dogcatcher Marketplace service.
Current vs Fair Prices
Source: YCharts.com
Since five of the top ten Reliable Retiree shares are now priced less than the annual dividends paid out from a $1K investment, the above charts compare those five plus five at current prices (top chart) with the fair pricing of all ten top dogs conforming to that ideal (middle chart). The dollar and percentage differences between current and fair prices are detailed in the bottom chart.
Kiplinger Retirees By Author
Source: Kiplinger
Stocks listed above were suggested only as possible reference points for your Retirement stock 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.
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 Thomson/First Call in YahooFinance. Open source dog art from dividenddogcatcher.com
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This article was written by
Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such 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.