Buy 19 September 2021 Exceptional Dividend Dogs Now

Sep. 29, 2022 3:12 PM ETBEN, EPD, FLO, GLPI, HBAN, KMI, LYB, MDC, MO, MPW, GEN, NNN, RCII, RGR, ROIC, RYN, VALE, VZ, WMB1 Comment

Summary

  • Last year, May-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.'
  • How’re they doin’ now? Those 76 top-dividend-stocks ranged 0.13% to 11.25% in annual-yield and ranged -1.83% to +80.17% in one-year price-target-upsides per Brokers as of 9/27/22.
  • Top-ten Exceptional 2021-22 Kiplinger Dividend stocks boasted net gains from 37.76% to 80.15% as of 9/27/22 YCharts data.
  • $5k invested in the lowest-priced five of ten top-yield Kiplinger 2021 Exceptional Dividend dogs in September 2022 showed 18.57% more net-gain than from $5k invested in all ten. Little (lower-priced) stocks took a near two length lead on this exceptional pack in September.
  • Looking for a portfolio of ideas like this one? Members of The Dividend Dog Catcher get exclusive access to our model portfolio. Learn More »

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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 21 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 September 27, 2022 data for 76 dividend stocks plus 10 "No-Pays" parsed by YCharts.

The prices of 19 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 19 Dogcatcher ideal stocks for September are: Vale S.A. (VALE); Medical Properties Trust Inc. (MPW); Altria Group Inc. (MO); Enterprise Products Partners L.P. (EPD); M.D.C. Holdings Inc. (MDC); Kinder Morgan Inc. (KMI); Verizon Communications Inc. (VZ); Gaming and Leisure Properties Inc. (GLPI); Rent-A-Center Inc. (RCII); Williams Companies Inc. (WMB); Sturm, Ruger & Co., Inc. (RGR); Newmont Corp. (NEM); National Retail Properties Inc. (NNN); Franklin Resources Inc. (BEN); Huntington Bancshares Inc. (HBAN); Retail Opportunity Investments Corp. (ROIC); Rayonier Inc. (RYN); Flowers Foods Inc. (FLO); NortonLifeLock Inc. (NLOK).

All nineteen 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 37.76% To 80.15% Net Gains For Ten Exceptional Dividend Stocks To September 2023

Six 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 August dogs, as graded by Wall St. Wizards, was 60% accurate.

KEDS (1A) GAINERS SEP, 22-23

Source: YCharts.com

Estimated dividends from $1000 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 September 2023 were:

Rent-A-Center Inc. was projected to net $801.51, based on the median of target price estimates from 7 analysts, plus annual dividend, less broker fees. The Beta number showed this estimate subject to risk/volatility 61% greater than the market as a whole.

Medical Properties Trust Inc. was projected to net $607.74, based on dividends, plus the median of target price estimates from 13 analysts, less broker fees. The Beta number showed this estimate subject to risk/volatility 20% less than the market as a whole.

Newmont Corp. was projected to net $599.11, based on the median of target estimates from 18 analysts, plus dividends, less broker fees. The Beta number showed this estimate subject to risk/volatility 71% less than the market as a whole.

Vale S.A. was projected to net $544.73, based on dividends, plus the median of target price estimates from 22 analysts, less broker fees. The Beta number showed this estimate subject to risk/volatility 7% less than the market as a whole.

M.D.C. Holdings Inc. was projected to net $523.42, based on dividends, plus median target price estimates from 4 analysts, less broker fees. The Beta number showed this estimate subject to risk/volatility 39% more than the market as a whole.

Retail Opportunity Investments Corp. was projected to net $436.94, based on the median of estimates from 9 analysts, plus dividends, less broker fees. The Beta number showed this estimate subject to risk/volatility 36% greater than the market as a whole.

Sturm, Ruger & Co., Inc. was projected to net $423.92, based on dividends, plus the median of target price estimates from 2 analysts, less broker fees. The Beta number showed this estimate subject to risk/volatility 51% under the market as a whole.

Enterprise Products Partners L.P. was projected to net $411.01 based on the median of target price estimates from 19 analysts, plus annual dividend, less broker fees. The Beta number showed this estimate subject to risk/volatility 15% more than the market as a whole.

Verizon Communications Inc. was projected to net $378.78, based on dividends, plus the median of target price estimates from 24 analysts, less broker fees. The Beta number showed this estimate subject to risk/volatility 64% under the market as a whole.

Williams Companies Inc. was projected to net $377.56, based on dividends, plus the median of target price estimates from 20 analysts, less broker fees. The Beta number showed this estimate subject to risk/volatility 17% over the market as a whole.

The average net gain in dividend and price was estimated at 51.05% on $10k invested as $1k in each of these ten stocks. These gain estimates were subject to average risk/volatility 4% under the market as a whole.

KEDS (2) Open source dog art DDC3 SEP 22 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 September Analyst Targets

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

Source: YCharts.com

60 Kiplinger Exceptional Dividend Stocks Per June Yield Data

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

Source: YCharts.com

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

Top ten August Kiplinger Exceptional 2021 Dividend stocks by yield represented seven of eleven Morningstar sectors. The first place was held by the first of two basic materials representatives, Vale S.A. [1], the other placed eighth, LyondellBasell Industries N.V. (LYB) [8].

Then, second, and ninth places, went to two real estate, equities, Medical Properties Trust [3], and Gaming and Leisure Properties Inc. [9]. Next, a lone consumer defensive representative placed third, Altria Group Inc. [3].

Fourth and sixth places, were claimed by energy sector representatives, Enterprise Products partners L.P. [4], and Kinder Morgan Inc. [6].

The consumer cyclical representative took the fifth slot, M.D.C. Holdings Inc. [5]. One communication services entity placed seventh, Verizon Communications Inc. [7].

Finally, a lone industrials representatives found itself in the tenth position on this list, Rent-A-Center Inc. [10], to complete the top ten exceptional 2021 dividend pack for September.

Actionable Conclusions: (21-30) Ten Top Exceptional 2021 Dividend Stocks Showed 32.17%-75.11% Upsides While (31) No Down-siders Fell For September 2023.

KEDS (4) UP/DNSIDES SEP 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 18.57% Advantage For 5 Highest Yield, Lowest Priced, of 10 Exceptional Dividend Stocks To September 27, 2023

Ten-top Kiplinger Exceptional 2021 Dividend stocks were culled by yield for this update. Yield (dividend / price) results provided by YCharts did the ranking.

KEDS (5)10LIST SEP 22-23

Source: YCharts.com

As noted above, top-ten Kiplinger exceptional 2021 stocks screened 9/27/22, 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 2021 Dividend Stocks (32) Delivering 53.37% Vs. (33) 45.01% Net Gains by All Ten Come September 2023

KEDS (6) 10GAINS SEP, 22-23

Source: YCharts.com

$5000 invested as $1k in each of the five lowest-priced stocks in the top ten Kiplinger Exceptional 2021 Dividend kennel by yield were predicted by analyst 1-year targets to deliver 18.57% more gain than $5,000 invested as $.5k in all ten. The fourth lowest-priced selection, Rent-A-Center Inc. showed the best analyst-estimated net gain of 80.15%.

KEDS (7)10BYPRICE SEP 22-23

Source: YCharts.com

The five lowest-priced top-yield Kiplinger Exceptional 2021 Dividend Dogs as of September 27 were: Medical Properties Trust Inc.; Vale S.A.; Kinder Morgan Inc.; Rent-A-Center Inc.; Enterprise Products Partners L.P., with prices ranging from $11.93 to $23.35.

Five higher-priced Kiplinger 2021 exceptional dividend dogs as of September 27 were: M.D.C. Holdings Inc.; Verizon Communications Inc.; Altria Group Inc.; Gaming and Leisure Properties Inc;. LyondellBasell Industries N.V., whose prices ranged from $27.65 to $73.28.

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 85% 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 2021 Exceptional Stocks and with all but ten paying dividends. The article focuses on the top 30 so more than half the original list of companies is neglected. Therefore, below is the complete list of 86 stocks grouped by authors

KEDS (8) 86 BYAUT SEP, 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 19 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.

19 Dogcatcher 2021 Exceptional Ideal Stocks for August

KEDS (9) 19DC IDEALS SEP, 22-23

Source: YCharts.com

All nineteen 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 2021 Exceptional Dividend Stocks Could Become Ideal and Fair Priced Dogs

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

Source: YCharts.com

Since nine of the top ten Exceptional Dividend shares are now priced less than the annual dividends paid out from a $1K investment, the dollar and percentage difference between the recent and fair priced are shown in the top chart above. Nine ideal plus the one at recent prices are detailed in the middle chart; with the fair pricing of all ten top dogs conforming to the dogcatcher ideal showing in the bottom chart.

With renewed downside market pressure to 6%, it is possible for all ten highest-yield 2021 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 nine 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.

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. Dog image:Open source dog art from dividenddogcatcher.com

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This article was written by

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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.

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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