V&M Breakouts: Top Growth And Dividend Stocks For October 2021

Oct. 07, 2021 2:21 PM ETAMP, BLK, CNHI, CNQ, COP, GRMN, HAL, INFY, KLAC, LUV, SLF, SLFIF, SUNFF, TSM, UMC, SLF:CA, SLF.PRD:CA, SLF.PRG:CA, CNQ:CA4 Comments

Summary

  • Releasing two top October stocks from the MDA Growth and Dividend Breakout monthly portfolio and two top samples from prior portfolios.
  • Long-term dividend portfolios have a 1 year average weighted gain of +21.78%. The best gain is still from May 2020 portfolio +85.3%.
  • 21 portfolios have been formed since this model began in Jan 2020. 13 portfolios have gained over +23.1% from inception and 10 portfolios more than +33.9% to date.
  • The October 2020 1-year portfolio is up +40.8% and published returns do not include additional minimum 2% dividends from each of the high dividend stocks.
  • This idea was discussed in more depth with members of my private investing community, Value & Momentum Breakouts. Learn More »

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VMBreakouts

Introduction

The Top Dividend Growth stock model expands on my doctoral research analysis on multiple discriminant analysis (MDA) adding new complexities with these top picks. Research shows that the highest frequency of large price breakout moves are found among small cap stocks with low trading volumes offering no dividends and delivering higher than average risk levels.

The challenge with the Top Dividend & Growth model is to deliver a combination toward optimal total return with characteristics that typically reduce the frequency and size of price breakouts, but deliver more reliable growth factors for higher profitability longer term.

Returns to date on the MDA Growth & Dividend selection model not including large % dividends from all stocks:

MDA growth & dividend portfolios

The 1-year return of the October 2020 portfolio is coming to the end of the measurement period with +40.9% annual gains (not including dividends). Members are free to buy/hold for the one-year measurement period of each portfolio, hold longer, or update your Growth & Dividend portfolios with newer selections. The list of top performing MDA Growth & Dividend stocks is in the table near the end of the article.

Each monthly selection portfolio consists of 5 stocks above a minimum $10 billion market cap, $2/share price, 500k average daily volume and a minimum 2% dividend yield. The population of this unique mega cap segment is approximately 330 stocks out of over 7,800 stocks across the US stock exchanges. While these stocks represent less than 5% of available stocks, their market cap exceeds $19 trillion out of the approximately $33 trillion (57.6%) of the US stock exchanges. Efforts are made to optimize total returns on the key MDA price growth factors (fundamental, technical, sentiment) for the best results under these large cap constraints with high priorities for dividend growth and dividend yield.

Top Growth & Dividend Stocks For October 2021

  • Canadian Natural Resources LTD (CNQ)
  • Sun Life Financial Inc. (SLF)

Score Overview of the Growth & Dividend Stocks for October

Top dividend stocks for October

(StockRover)

Dividend Calendar

Canadian Natural res. and Sun Life Financial dividend calendar (StockRover)

The factors shown above are not necessarily selection variables used in the MDA analysis and dividend algorithms for growth and strong total returns. These additional financial perspectives and reports are included to enhance your investment decisions for total returns.

Canadian Natural Resources LTD

Canadian Natural Resources LTD stock chart

(Source: FinViz)

insight for CNQ

(Source: StockRover)

CNQ calendar year dividend payments

(Source: StockRover)

Oct-05-21 07:44AM The Zacks Analyst Blog Highlights: Exelon Corp, American International Group and Canadian Natural Resources Zacks
Sep-28-21 09:33AM 10 Best International Stocks in 2021 Insider Monkey
Sep-27-21 08:41AM Canadian Natural (CNQ) Requires COVID-19 Vaccinations for Workers Zacks
Sep-24-21 03:55PM Oil producer Canadian Natural Resources to require worker vaccinations Reuters
Sep-23-21 11:30AM Is Canadian Natural Resources (CNQ) Stock Outpacing Its Oils-Energy Peers This Year? Zacks
Sep-17-21 09:26AM Halliburton (HAL) Acquires Well-Drilling Contract in Israel Zacks
Sep-14-21 10:13AM Top Ranked Momentum Stocks to Buy for September 14th Zacks

(Source: FinViz)

Canadian Natural Resources Limited acquires, explores for, develops, produces, markets, and sells crude oil, natural gas, and natural gas liquids . The company offers synthetic crude oil, light and medium crude oil, bitumen (thermal oil), primary heavy crude oil, and Pelican Lake heavy crude oil. Its midstream assets include two crude oil pipeline systems; and a 50% working interest in an 84-megawatt cogeneration plant at Primrose.

Sun Life Financial Inc.

Sun life financial stock chart

(Source: FinViz)

insight for SLF

(Source: StockRover)

SLF calendar year dividend payments

(Source: StockRover)

Oct-05-21 11:45AM Why Sun Life (SLF) is a Top Dividend Stock for Your Portfolio Zacks
Oct-04-21 12:42PM Sun Life to acquire Boston-based DentaQuest for $2.5B American City Business Journals
Oct-04-21 11:15AM Sun Life (SLF) to Expand Dental Business With DentaQuest Buyout Zacks
Oct-04-21 10:58AM UPDATE 1-Sun Life to buy U.S. benefits firm DentaQuest for $2.5 bln in biggest deal since 2001 Reuters
Oct-04-21 10:21AM Sun Life to Buy DentaQuest for $2.48 Billion to Grow in U.S. Bloomberg
Oct-04-21 09:46AM Sun Life to buy U.S. benefits firm DentaQuest for $2.5 billion in biggest deal since 2001 Reuters

(Source: FinViz)

Sun Life Financial Inc., a financial services company, provides insurance, wealth, and asset management solutions to individuals and corporate clients worldwide. It offers term and permanent life, as well as health, dental, critical illness, long-term care, and disability insurance products. The company also provides reinsurance products; investment counselling and portfolio management services; mutual funds and segregated funds; trust and banking services; real estate property brokerage and appraisal services; and merchant banking services.

2 Additional Top Stocks from Prior Portfolios

The two additional samples below are among the strongest selections across prior portfolios with continued strong conditions and dividends for high total returns. It's common that each set of monthly portfolio selections have a different sector composition and growth story based on events at that time.

For example, the October dividend portfolio is heavily weighted toward financials and energy, while the February selections were primarily consumer defensive/food production stocks. The inflationary trade supports further gains in financial and energy stocks to the year end.

  • Ameriprise Financial (AMP) is up +99.5% from the June 2020 portfolio in strong setup for continued growth in the financial industry.
  • Southwest Airlines (LUV) is up +70.8% from the June 2020 portfolio in strong recovery in the airline segment.

AMP & LUV stock preview

(Source: StockRover)

Ameriprise - daily chart

Ameriprise stock chart (FinViz)

Southwest Airlines - daily chart

Southwest airlines stock chart

(FinViz)

Prior Long-Term Gainers to Consider

This section is a brief review of strong prior selections that have delivered on the long term growth forecast YTD. These prior portfolios are available in the list of published articles and complete stock selections are available in the members' area. From the start of the year across all the long term Growth & Dividend MDA selections, the following stocks have significantly outperformed on price alone, not including dividends.

The 2020 Year End Report Card for the Growth & Dividend MDA breakout stocks is available here: V&M Top Growth & Dividend MDA Breakouts: 2020 Year End Report Card

Symbol Company Name Price Return from Selection
(INFY) Infosys Ltd ADR 22.70 145.94%
(KLAC) KLA Corp 333.92 132.31%
(UMC) United Microelectronics Corp 11.03 130.27%
(TSM) Taiwan Semiconductor Mfg. Co. Ltd. 111.20 106.54%
AMP Ameriprise Financial, Inc. 279.45 99.51%
(GRMN) Garmin Ltd. 158.18 94.90%
(BLK) BlackRock, Inc. 852.29 93.72%
(CNHI) CNH Industrial NV 16.51 74.16%
LUV Southwest Airlines Co 54.82 70.78%
(COP) ConocoPhillips 71.68 70.26%

*Returns to date on the MDA Growth & Dividend selection model do not include large dividends from each stock:

MDA Growth & Dividend portfolio 2021

Conclusion

These stocks continue a live forward-testing of the breakout selection algorithms from my doctoral research applied to large cap, strong dividend growth stocks. None of the returns listed above include the high dividend yields as part of the performance and would further increase total returns for each stock. These monthly top Growth & Dividend stocks are intended to deliver excellent long-term total return strategies leveraging key factors in the MDA breakout models used in the small cap weekly breakout selections.

These selections are being tracked on the V&M Dashboard Spreadsheet for members and enhancements will continue to optimize dividend, growth, and higher breakout frequency variables throughout the year.

All the very best to you!!

JD Henning, PhD, MBA, CFE, CAMS



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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.

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