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 to Buy Now 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 October 27 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 bounced back beyond broker targets.
The following six (as of October 27) continue to live up to the Dogcatcher ideal of delivering annual dividends from a $1K investment in excess of their single share prices: Enterprise Products Partners LP (EPD); Enbridge Inc. (ENB); Pembina Pipeline Corp. (PBA); Ennis Inc. (EBF); Old Republic International Corp. (ORI); Monmouth Real Estate Investment Corp. (MNR). Many investors regard this condition as a "look closer to maybe buy" signal.
To learn which of these six are 'safer' dividend dogs, migrate to my Dividend Dogcatcher marketplace here on the Seeking Alpha site after November 5th. 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 and roll out a subscription to my Dogcatcher Marketplace service.
Six 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 November dogs was graded by Wall St. Wizards as 60% 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 October 27, 2022 were:
Ennis Inc. was projected to net $330.46 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.
Enterprise Products Partners LP was projected to net $255.18, 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 38% more than the market as a whole.
Omnicom Group Inc. (OMC) was projected to net $241.84, based on dividends, plus the median of target price estimates from thirteen analysts, less broker fees. The Beta number showed this estimate subject to risk/volatility 8% under the market as a whole.
Old Republic International Corp was projected to net $195.31, based on dividends, plus the median of target price estimates from thirteen analysts, less broker fees. The Beta number showed this estimate subject to risk/volatility 8% less than the market as a whole.
Allstate Corp. (ALL) was projected to net $185.48, based on the median of target price estimates from twelve analysts, plus dividends, less broker fees. The Beta number showed this estimate subject to risk/volatility 13% under the market as a whole.
Verizon Communications (VZ) was projected to net $172.93, based on a median of target price estimates from twenty-three analysts, plus dividends, less broker fees. The Beta number showed this estimate subject to risk/volatility 43% less than the market as a whole.
Enbridge Inc. was projected to net $169.97, based on dividends, plus median of target price estimates from four analysts, less broker fees. The Beta number showed this estimate subject to risk/volatility 13% under the market as a whole.
National Retail Properties Inc. (NNN) was projected to net $159.95, based on the median of target price estimates from twelve analysts, plus annual dividend, less broker fees. The Beta number showed this estimate subject to risk/volatility 14% less than the market as a whole.
Chevron Corp (CVX) was projected to net $146.93, 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 28% greater than the market as a whole.
Colgate-Palmolive Co. (CL) was projected to net $145.45, based on dividends, plus the median of the target price estimates from twenty analysts, less broker fees. The Beta number showed this estimate subject to risk/volatility 41% under the market as a whole.
The average net gain in dividend and price was estimated at 20.04% on $10K invested as $1K in each of these ten stocks. These gain estimates were subject to average risk/volatility 13% under the market as a whole.
Source: Open source dog art from dividenddogcatcher.com
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".
Top ten November Reliable Retirement Dividend stocks represented five of eleven Morningstar sectors.
Four energy stocks occupied first through third and ninth places: Enterprise Products Partners LP , Enbridge Inc. , Pembina Pipeline Corp. , and Chevron Corp. .
Fourth place went to the first of three real estate sector representatives, W. P. Carey Inc. (WPC) . The others placed eighth and tenth, Universal Health Realty Income Trust (UHT) , and National Retail Properties Inc. .
One lone industrials entity placed fifth, Ennis Inc. , and sixth place was claimed by the lone utilities representative, Pinnacle West Capital Corp. (PNW) .
Finally a single communication services representative placed seventh, Verizon Communications Inc.  to complete the reliable retirement top ten dividend dogs by yield for November.
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.
Yield (dividend/price) results provided by YCharts sourced the ranking for these ten top reliable retirement dividend dogs.
As noted above, top ten Kiplinger reliable retirement dogs screened 10/27/21 showed the highest dividend yields and represented five of eleven in the Morningstar sector scheme.
$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 23.21% more gain than $5,000 invested as $.5K in all ten. The very lowest priced selection, Ennis Inc., was projected to deliver the best net gain of 33.05%.
The five lowest-priced top-yield Kiplinger most-reliable retiree dividend dogs as of October 27 were: Ennis Inc., Enterprise Products Partners LP, Pembina Pipeline Corp., Enbridge Inc. and National Retail Properties Inc., with prices ranging from $18.65 to $46.52.
Five higher-priced Kiplinger top yield reliable retirement dividend dogs as of October 27 were: Verizon Communications Inc., Universal Health Realty Income Trust, Pinnacle West Capital Corp., W. P. Carey Inc. and Chevron Corp, whose prices ranged from $52.63 to $112.07.
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.
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:
The 6 above (as of October 27) 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 November 5, 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.
Since four 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 four plus six 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.
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 Yahoo Finance. Open source dog art from dividenddogcatcher.com.
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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.