My Favorite Buys For $45,000 Of Dividends In Any Market

Foreword

This article is based on two Kiplinger investing articles, aimed at identifying the Wall Street and Kiplinger favorite dividend stocks.

>The Kiplinger Dividend 15

, by Ryan Ermey, published 7/6/20, "We divided these payers into three categories: stocks with a long history of stable dividends, stocks with the potential for rapid growth in their payouts, and high yielders."

>25 Dividend Stocks the Analysts Love the Most

, by Dan Burrows published 10/14/20, "To find analysts' favorite dividend stocks, we scoured the S&P 500 for dividend stocks with yields of more than 3%, excluding a number of extremely high yielders because of excessive risk. (

Sometimes, a too-high yield can be a warning sign that a stock is in deep trouble.)"

Any collection of stocks is more clearly understood when subjected to yield-based (dog catcher) analysis, this collection of

Kiplinger/Analyst Favorite

Dividend Dogs are perfect for the dogcatcher process. Below are the October 23 data for 39 dividend stocks.

The prices of 15 of these 39 Analyst and Kiplinger Favorites (listed by yield) made the possibility of owning productive dividend shares from this collection more viable for first-time investors. Those 15 are EPD; VLO; WMB; MPC; PSX; CFG; COP; FANG; BKR; DVN; C; FITB; EOG; NRG; NI. They all 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 a buy signal.

To learn which of those 15 are 'safer' dividend dogs, read my Dividend Dogcatcher follow-up market piece, 'Safer' Kiplinger/Analyst Dividends For October in the SeekingAlpha Marketplace. Follow the click instructions on the last bullet in the Summary points above.

Actionable Conclusions (1-10): Analysts Estimated 45.62% To 90.98% Net Gains For Ten

Top

Kiplinger/Analyst Favorite

Dividend Dogs To October, 2021

Six of ten top analyst and Kiplinger favorite dividend 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 60% accurate.

Source: YCharts.com

>

Projections were based on estimated dividends from $1000 invested in each of the highest yielding stocks plus their aggregate one-year analyst median target prices, as reported by YCharts. Note: one-year target prices by lone analysts were not applied. Ten probable profit-generating trades projected to October 22, 2021 were:

Diamondback Energy Inc (FANG) was projected to net $909.76, based on dividends, plus a median on the target price estimates from twenty-four analysts, less broker fees. The Beta number showed this estimate subject to risk/volatility 31% over the market as a whole.

Devon Energy Corp (DVN) was projected to net $771.58 based on dividends, plus the median of target estimates from twenty-eight brokers, less transaction fees. The Beta number showed this estimate subject to risk/volatility 224% greater than the market as a whole.

EOG Resources Inc (EOG) was projected to net $704.04, based on dividends, plus the median of target price estimates from thirty-two analysts, less broker fees. The Beta number showed this estimate subject to risk/volatility 100% greater than the market as a whole.

ConocoPhillips (COP) was projected to net $582.60, based on the median of estimates from twenty-four analysts, plus dividends, less broker fees. The Beta number showed this estimate subject to risk/volatility 68% more than the market as a whole.

Marathon Petroleum Corporation (MPC) was projected to net $563.01, based on the median of target estimates from sixteen analysts, plus dividends, less broker fees. The Beta number showed this estimate subject to risk/volatility 114% more than the market as a whole.

Valero Energy Corp (VLO) was projected to net $548.18, 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 89% more than the market as a whole.

Phillips 66 (PSX) was projected to net $531.71, based on the median of target price estimates from twenty analysts, plus annual dividend, less broker fees. The Beta number showed this estimate subject to risk/volatility 53% greater than the market as a whole.

Enterprise Product Partners LP (EPD) was projected to net $466.10 based on the median of target price estimates from twenty-three analysts, plus annual dividend, less broker fees. The Beta number showed this estimate subject to risk/volatility 42% greater than the market as a whole.

Baker Hughes Co (BKR) was projected to net $457.50, based on dividends, plus the median of target price estimates from thirty analysts, less broker fees. The Beta number showed this estimate subject to risk/volatility 65% greater than the market as a whole.

Citigroup Inc (C) was projected to net $456.20, based on dividends, plus median target price estimates from twenty-five analysts, less broker fees. The Beta number showed this estimate subject to risk/volatility 78% greater than the market as a whole.

The average net gain in dividend and price was estimated at 59.91% on $10k invested as $1k in each of these ten stocks. These gain estimates were subject to average risk/volatility 86% more than the market as a whole.

Source: sciencemag.org

>

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".

39

Kiplinger/Analyst Favorite

Dividend Stocks

Per

October 22 Target Gains

Source: YCharts.com

>

39 Stocks

Per October 22 Yield Data

Source: YCharts.com

>

Actionable Conclusions (11-20): Ten Top

Kiplinger/Analyst Favorite Dividend

Stocks

By Yield

Top ten Kiplinger/Analyst Favorite Dividend stocks by yield represented three of eleven Morningstar sectors. The first six, as well as the ninth and tenth places went to eight

energy representatives, Enterprise Products Partners LP [1]; Valero Energy Corp [2]; Williams Companies Inc (WMB) [3]; Marathon Petroleum Corp [4]; Phillips 66 [5]; Chevron Corp (CVX) [6]; ConocoPhillips [9]; Diamondback Energy Inc [10].

Seventh place went to a

healthcare company, AbbVie Inc (ABBV) [7], and eighth place was claimed by a

financial services sector representative, Citizens Financial Group Inc (CFG) [8], to complete the Kiplinger/Analyst Favorite Dividend top ten by yield field for October.

Actionable Conclusions: (21-30) Top Ten Kiplinger/Analyst Favorite Dividend

Stocks

Showed 37.5%-86.84% Upsides While (31) No Down-siders Emerged October 22.

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, median analyst target price estimates became another tool to dig out bargains.

Analysts Forecast A 0.95% Disadvantage For 5 Highest Yield, Lowest Priced of 10 Kiplinger/Analyst Favorite Dividend Stocks To October, 2021

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

Source: YCharts.com

>

As noted above, top ten Kiplinger Dividend Special stocks screened 10/22/20, showing the highest dividend yields, represented three of eleven stocks in the Morningstar sector scheme.

Actionable Conclusions: Analysts Predicted 5 Lowest-Priced Of The Top Ten

Highest-Yield

Outstanding Dividend Stocks (32) Delivering 47.02% Vs.

(33) 47.07%

Net Gains

by All Ten

Come

October 2021

Source: YCharts.com

>

$5000 invested as $1k in each of the five lowest-priced stocks in the top ten Kiplinger /Analyst Favorite Dividend kennel by yield were predicted by analyst 1-year targets to deliver 0.95% LESS gain than $5,000 invested as $.5k in all ten. The fourth lowest-priced selection, Diamondback Energy Inc, was projected to deliver the best net gain of 90.98%

Source: YCharts.com

The five lowest-priced top-yield Kiplinger/Analyst Favorite Dividend Dogs as of October 22 were: Enterprise Products Partners LP; Williams Companies Inc ; Citizens Financial Group Inc; Diamondback Energy Inc; Marathon Petroleum Corp, with prices ranging from $17.60 to $29.51.

Five higher-priced Kiplinger/Analyst Favorite Dividend Dogs as of October 22 were: ConocoPhillips; Valero Energy Corp; Phillips 66; Chevron Corp; AbbVie Inc, whose prices ranged from $31.91 to $84.31.

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 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

This article features 39 Kiplinger/Analyst Favorite Dividend Stocks. The article focuses on the top 30, thus a quarter the original list of companies is neglected. Therefore, below is the complete list of 39 stocks grouped by author and including the analyst rankings from 1 (strong buy) to 5 (strong sell). Anything over 2.5 is considered a buy recommendation.

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 39 Analyst and Kiplinger Favorites (listed by yield) made the possibility of owning productive dividend shares from this collection more viable for first-time investors. Those 15 are EPD; VLO; WMB; MPC; PSX; CFG; COP; FANG; BKR; DVN; C; FITB; EOG; NRG; NI. They all 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 a buy signal.

To learn which of those 15 are 'safer' dividend dogs, read my Dividend Dogcatcher follow-up market piece, 'Safer' Kiplinger/Analyst Dividends For October in the Seeking Alpha Marketplace. Follow the click instructions on the last bullet in the Summary points above.

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 photo: sciencemag.org

Source : https://seekingalpha.com/article/4381191-15-of-39-kiplinger-analyst-favorite-october-dividend-treats

15 Of 39 Kiplinger/Analyst Favorite October Dividend Treats
Phillips 66 Partners: My Favorite Mistake Is A Buy
5 High-Yield Dividend Stocks for November
7 Dividend Stocks To Buy For Big Returns In Your Bank Account
Travelers: An Excellent 'Boring Stock' Trading Below Intrinsic Value
3 Stocks You Can Buy and Hold Forever
Protect Your Dividend, Payout Ratios Explained
How to become a millionaire! Why I think it’s possible through stock market investing
Dividend Kings In Focus Part 29: Stanley Black & Decker
3 Stocks That Could Hike Dividends In November