15 June Exceptional Dividend Dogs Primed To Buy

Jun. 14, 2022 10:25 PM ETBBY, BEN, EPD, FLO, GLPI, HBAN, JPM, KMI, MDC, MO, MPW, NNN, OMC, RCII, RGR, ROIC, UNM, UPS, VALE, VZ, WMB8 Comments8 Likes

Summary

  • May to August 2021, Kiplinger-Today listed eight sets of stocks sorted as: best-buys for 2021, infrastructure-plays, value, growth, small-cap, high-yield, housing-bets, and cash-flow-gushers. Those eight "exceptional-dividend" articles revealed 86-equities, 76-paying-dividends.
  • Kiplinger article-titles were, '21 Best Stocks to Buy'; '14 Best Infrastructure Stocks'; '16 Best Value; '10 Dividends-Growth'; '6 Small-Cap'; '10 High-Yield 4% or More;' '12 Housing; '10 Cash-Flow-Gushers.'
  • Those 76 top-dividend-stocks ranged 0.09% to 13.23% in annual-yield and ranged -32.42% to 120.02% in one-year price-target-upsides per brokers 6/10/22.
  • Top-ten Exceptional 2021-22 Kiplinger Dividend stocks boasted net gains from 24.67% to 67.09% as of June 10 per YCharts data.
  • $5K invested in the lowest-priced five of ten top-yield Kiplinger Exceptional Dividend dogs in June showed 10.5% more net-gain than from $5K invested in all ten. Little (lower-priced) stocks took a one and one-eighth length lead on this exceptional pack in June.
  • Looking for a portfolio of ideas like this one? Members of The Dividend Dog Catcher get exclusive access to our model portfolio. Learn More »

Cute puppy dog border collie holding gold champion trophy cup in mouth isolated on white background. Winner champion funny dog. Victory first place of competition. Winning or success concept

Iuliia Zavalishina/iStock via Getty Images

Foreword

This article is based on eight Kiplinger investing articles, aimed at finding the Best-Buy, U.S. Infrastructure, Value, Growth, Small-Cap, High-Q Dividend, Housing, and Cash-Flow stocks.

The 22 Best Stocks to Buy for the Rest of 2021

"Call it a comeback. Many of the best stocks to buy for the rest of this year remain heavily tied to economic recovery." prospects.

by: Charles Lewis Sizemore, CFA

August 6, 2021

14 Best Infrastructure Stocks for America's Big Building Spend

"These 14 infrastructure stocks represent several themes that could enjoy a boost should the roughly $1 trillion Bipartisan Infrastructure Investment and Jobs Act become law."

by: Charles Lewis Sizemore, CFA

August 10, 2021

The 16 Best Value Stocks for the Rest of 2021

"Value stocks have been en vogue this year. These names could see upside as the U.S. economy continues to recover from the COVID-19 pandemic."

by: Lisa Springer

June 15, 2021

10 Dividend Growth Stocks You Can Count On

"What should investors prioritize in dividend growth stocks? A history of aggressive payout expansion, and the ability to generate enough cash to keep the hikes coming."

by: Andrew Packer

May 3, 2021

6 Small-Cap Dividend Stocks to Buy Now

"Small-cap stocks aren't generally seen as income-building investments, but the names on this list offer hefty payouts for shareholders."

by: Louis Navellier

August 13, 2021

10 High-Quality Stocks With Dividend Yields of 4% or More

"There's no shortage of stocks with dividends these days, but not all of them are worth chasing. Here's a list of top-rated, high-yielding names to consider."

by: Dan Burrows

July 12, 2021

12 Housing Stocks to Ride the Red-Hot Market

"The U.S. has a housing shortage and a love affair with home improvement, both of which could create tailwinds for this group of housing stocks."

by: Will Ashworth

June 8, 2021

10 Free Cash Flow Gushers for Dividends, Buybacks and More

"Excess free cash flow can often be used to generate long-term value for companies. Here are 10 FCF stocks that could be poised for growth."

by: Will Ashworth

May 24, 2021

Any collection of stocks is more clearly understood when subjected to yield-based (dog catcher) analysis, this collection of Kiplinger Exceptional Dogs is perfect for the dogcatcher process. Below are the June 10, 2022 data for 76 dividend stocks plus 10 "No-Pays" parsed by YCharts.

The prices of 15 of these 76 Kiplinger Exceptional Dividends (listed by yield) made the possibility of owning productive dividend shares from this collection more viable for first-time investors.

Those 15 Dogcatcher ideal stocks for June are: Vale SA (VALE); Altria Group Inc (MO); Medical Properties Trust Inc (MPW); Enterprise Products Partners LP (EPD); Gaming and Leisure Properties Inc (GLPI); Kinder Morgan Inc (KMI); M.D.C. Holdings Inc (MDC); Rent-A-Center Inc (RCII); National Retail Properties Inc (NNN); Huntington Bancshares Inc (HBAN); Williams Companies Inc (WMB); Franklin Resources Inc (BEN); Flowers Foods Inc (FLO); Unum Group (UNM); Retail Opportunity Investments Corp (ROIC).

All fifteen live up to the ideal of having their annual dividends from a $1K investment exceed their single share prices. Many investors see this condition as "look closer to maybe buy" opportunity.

Actionable Conclusions (1-10): Analysts Estimated 24.67% To 67.09% Net Gains For Ten Exceptional Dividend Stocks To June 2023

Five of ten top exceptional dividend stocks by yield were also 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 March dogs, as graded by Wall St. Wizards, was 50% accurate.

KEDS (1A) GAINERS JUN 10, 22-23

Source: YCharts.com

Estimated dividends from $1,000 invested in each of the highest yielding exceptional stocks, added to the median of aggregate one-year target prices from analysts (as reported by YCharts), generated the following results. Note: one-year target prices by lone analysts were not included. Ten probable profit-generating trades projected to June 2023 were:

Rent-A-Center Inc was projected to net $728.77, based on the median of target estimates from Seven analysts, plus dividends, less broker fees. The Beta number showed this estimate subject to risk/volatility 64% greater than the market as a whole.

M.D.C. Holdings Inc was projected to net $660.91, based on dividends, plus the median of target price estimates from five analysts, less broker fees. The Beta number showed this estimate subject to risk/volatility 34% over the market as a whole.

Vale SA was projected to net $392.17, based on dividends, plus the median of target price estimates from twenty-four analysts, less broker fees. The Beta number showed this estimate subject to risk/volatility 5% less than the market as a whole.

Best Buy Co Inc (BBY) was projected to net $318.11, based on dividends, plus median target price estimates from twenty-one analysts, less broker fees. The Beta number showed this estimate subject to risk/volatility 42% more than the market as a whole.

Medical Properties Trust Inc was projected to net $474.01, based on dividends, plus the median of target price estimates from fourteen analysts, less broker fees. The Beta number showed this estimate subject to risk/volatility 35% less than the market as a whole.

Huntington Bancshares Inc was projected to net $357.07, based on the median of estimates from eighteen analysts, plus dividends, less broker fees. The Beta number showed this estimate subject to risk/volatility 18% greater than the market as a whole.

JPMorgan Chase & Co (JPM) was projected to net $330.07 based on the median of target price estimates from twenty-five analysts, plus annual dividend, less broker fees. The Beta number showed this estimate subject to risk/volatility 12% more than the market as a whole.

Omnicom Group Inc (OMC) was projected to net $382.87, based on dividends, plus the median of target price estimates from ten analysts, less broker fees. The Beta number showed this estimate subject to risk/volatility 22% under the market as a whole.

Sturm, Ruger & Co Inc (RGR) was projected to net $246.65, 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 59% under the market as a whole.

United Parcel Service Inc (UPS) was projected to net $283.70, based on the median of target price estimates from twenty-eight analysts, plus annual dividend, less broker fees. The Beta number showed this estimate subject to risk/volatility 16% greater than the market as a whole.

The average net gain in dividend and price was estimated at 41.74% on $10K invested as $1K in each of these ten stocks. These gain estimates were subject to average risk/volatility 6% over the market as a whole.

KEDS (2) Open source dog art DDC11 from dividenddogcatcher.com

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 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".

60 Kiplinger Exceptional Stocks Per June Analyst Targets

KEDS (3A) 1-60BYTARGETS JUN,22-23

Source: YCharts.com

60 Kiplinger Exceptional Dividend Stocks Per June Yield Data

KEDS (3B) 1-60BYYIELD JUN, 22-23

Source: YCharts.com

Actionable Conclusions (11-20): Ten Top Exceptional Stocks By Yield

Top ten June Kiplinger Exceptional Dividend stocks by yield represented seven of eleven Morningstar sectors. The first place was held by the lone basic materials representative, Vale SA [1]. Next, one consumer defensive representative placed second, Altria Group Inc (MO) [2].

Then, third and fifth places went to two real estate equities, Medical Properties Trust [3], and Gaming and Leisure Properties Inc [5].

Fourth and sixth places were claimed by energy sector representatives, Enterprise Products partners LP [4] and Kinder Morgan Inc [6]. The consumer cyclical representative took the seventh slot, M.D.C. Holdings Inc [7].

One communication services entity placed ninth, Verizon Communications Inc (VZ) [9]. Finally, two industrials representatives found themselves in the eighth and tenth positions on this list, Rent-A-Center Inc [9] and Sturm, Ruger & Co Inc [10] to complete the top ten exceptional dividend pack for June.

Actionable Conclusions: (21-30) Ten Top Exceptional Dividend Stocks Showed 20.65%-68.56% Upsides While (31) Two Down-siders Fell -0.14% and -0.46% For June 2023

KEDS (4) UP/DNSIDES JUN 22-23

Source: YCharts.com

To quantify top-dog rankings, analyst median price target estimates provided a "market sentiment" gauge of upside potential. Added to the simple high-yield metrics, the median of analysts target price estimates became another tool to dig out bargains.

Analysts Forecast A 10.49% Advantage For 5 Highest Yield, Lowest Priced, of 10 Exceptional Dividend Stocks To June 10, 2023

Ten-top Kiplinger Exceptional Dividend stocks were culled by yield for this update. Yield (dividend / price) results provided by YCharts did the ranking.

KEDS (5)10LIST JUN 9, 22-23

Source: YCharts.com

As noted above, top-ten Kiplinger exceptional stocks screened 6/10/22, showing the highest dividend yields, represented seven of eleven in the Morningstar sector scheme.

Actionable Conclusions: Analysts Predicted 5 Lowest-Priced Of The Top-Ten Highest-Yield Exceptional Dividend Stocks (32) Delivering 37.29% Vs. (33) 33.75% Net Gains by All Ten Come June 2023

KEDS (6) 10GAINS JUN, 22-23

Source: YCharts.com

$5,000 invested as $1K in each of the five lowest-priced stocks in the top ten Kiplinger Exceptional Dividend kennel by yield were predicted by analyst 1-year targets to deliver 10.49% more gain than $5,000 invested as $.5K in all ten. The fourth lowest-priced selection, Rent-A-Center Inc, was projected to deliver the best net gain of 72.88%.

KEDS (7)10BYPRICE JUN, 22-23

Source: YCharts.com

The five lowest-priced top-yield Kiplinger Exceptional Dividend Dogs as of June 10 were: Medical properties Trust Inc, Vale SA, Kinder Morgan Inc, Rent-A-Center Inc and Enterprise Products Partners LP, with prices ranging from $15.99 to $27.62.

Five higher-priced Kiplinger exceptional dividend dogs as of June 10 were: M.D.C. Holdings Inc, Gaming and Leisure Properties Inc, Altria Group Inc, Verizon Communications Inc and Sturm, Ruger & Co Inc, whose prices ranged from $35.13 to $66.31.

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 90% accurate on the direction of change and just 0% to 15% 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

This article features 86 Kiplinger Exceptional Stocks and with all but ten paying dividends. The article focuses on the top 30, so nearly half the original list of companies is neglected. Therefore, below is the complete list of 86 stocks grouped by authors

KEDS (8) 86 BYAUT JUN, 22-23

Sources: Kiplinger.com,YCharts.com

If somehow you missed the suggestion of which stocks are ripe for picking at the start of this article, here is a reprise of the list at the end:

The prices of 15 of these 86 Kiplinger Exceptional Stocks for 2022 (listed by yield) made the possibility of owning productive dividend shares from this collection more viable for first-time investors.

15 Dogcatcher Ideal Stocks for June

KEDS (9) 15 DC IDEALS JUN, 22-23

Source: YCharts.com

All fifteen live-up to the ideal of having their annual dividends from a $1K investment exceed their single share prices. Many investors see this condition as "look closer to maybe buy" opportunity.

How All Ten Top Kiplinger Exceptional Dividend Stocks Could Become Ideal and Fair Priced Dogs

KEDS (10) CURRENT vs FAIR PR KEDS JUN,22-23

Source: YCharts.com

Since eight of the top ten Exceptional Dividend shares are now priced less than the annual dividends paid out from a $1K investment, the above charts compare those eight plus the two at recent prices (top chart) with the fair pricing of all ten top dogs conforming to that ideal (middle chart). The dollar and percentage difference between the recent and fair priced are shown in the bottom chart.

With renewed downside market pressure to 13%, it is possible for all ten highest-yield Kiplinger Exceptional Dividend stocks to become fair-priced with their annual yield (from $1K invested) meeting or exceeding their single share prices. This pack got a big head-start with eight of ten already fair priced.

Stocks listed above were suggested only as possible reference points for your 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 image: Open source dog art from dividenddogcatcher.com

Get The Whole Kiplinger Exceptional Dividend 'Safer' Dividend Dog Story

Click here to subscribe to The Dividend Dogcatcher. Get more information, the follow-up to this article, and a free two week trial.

Catch A Dog On Facebook At 8:45 AM every NYSE trade day on Facebook/Dividend Dog Catcher, A Fredrik Arnold live video highlights a portfolio candidate 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 profile picture
28.22K Followers
Simple, straightforward 7-step analysis that finds lucrative income stocks.
Fredrik Arnold is my pen name. In 2012 I retired from doing quality service analysis in Boston and moved to North Carolina in 2013, thence to Central Oregon in 2018. My fascination with capital preservation, long-term investments, and trading systems keeps me blogging for Seeking Alpha. My articles focus on dividend yields, analyst median 1 yr targets, free cash flow yields, and one-year total returns as stock trading indicators. These are essential tools for catching the most valuable dividend dogs. My dividend dogcatcher premium site in the Seeking Alpha Marketplace shows annual real-time trading results since 2015.
Follow

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.

Additional disclosure: 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.

Recommended For You

Comments (8)

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.