Any collection of stocks is more clearly understood when subjected to yield-based (dog catcher) analysis, these Kiplinger world’s most reliable dividend stocks are perfect for the dogcatcher process. Here is the June 25 data for 90 dividend paying stocks in the Kiplinger-documented collection. Suspended now are 9 dearly departed former dividend payers felled by their board of directors reaction to Covid19 stresses.
Now departed are: BAE Systems (OTCPK:BAESY); Bunzl (OTCPK:BZLFY); Essilorluxottica (OTCPK:ESLOY); Fresenius Medical Care AG & Co KGaA (FMS); Groupe Bruxelles Lambert (OTCPK:GBLBF); L’Oreal (OTCPK:LRLCY); Micro Focus International (MFGP); Flutter Entertainment PLC (OTCPK:PDYPY); Skandinaviska Enskilda Banken AB (OTCPK:SKVKY); WPP PLC (WPP).
The post-Ides-of-March plunge in the stock market took an 11% toll on the 99 international aristocrats. The Scandinavian bank was the first of the ten to suspend dividend payouts. However the drop in prices of 19 of the top 90 (listed by yield) most reliable dividend payers in the world has made the possibility of owning productive dividend shares from this collection more viable for first-time investors.
The following 19 currently live up to the ideal of having their annual dividends from a $1K investment exceed their single share price: RDEIY; ENGGY; ENB; XOM; PRU; CNQ; T; BTI; BNS; MEOH; BCE; IMBBY; CMPGY; BEN; LEG; WBA; ASBFY; SU; WTBDY.
To learn which of the nineteen are ‘safer’ dividend dogs, click
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Projections were based on estimated dividends from $1000 invested in each of the highest yielding stocks and 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 June 25, 2021 were:
Enbridge Inc (ENB) was projected to net $459.88, based on dividends, plus the median of target price estimates from twenty-seven analysts, less broker fees. The Beta number showed this estimate subject to risk 16% less than the market as a whole.
British American Tobacco PLC (BTI) was projected to net $404.81, based on the median of target price estimates from four analysts, plus annual dividend, less broker fees. The Beta number showed this estimate subject to risk 5% less than the market as a whole.
Canadian Natural Resources Ltd (CNQ) was projected to net $380.61 based on the median of target estimates from twenty-four analysts, plus dividends, less broker fees. The Beta number showed this estimate subject to risk 74% greater than the market as a whole.
Suncor Energy Inc (SU) was projected to net $276.45, based on dividends, plus the median of target price estimates from twenty-five analysts, less broker fees. The Beta number showed this estimate subject to risk 43% over the market as a whole.
Bank of Nova Scotia (BNS) netted $271.68 based on the median of estimates from twelve analysts, plus dividends. The Beta number showed this estimate subject to risk 4% less than the market as a whole.
BCE Inc (BCE) was projected to net $239.60, based on dividends, plus median target price estimates from nineteen analysts, less broker fees. The Beta number showed this estimate subject to risk 62% under the market as a whole.
Royal Bank of Canada (RY) was projected to net $207.55 based on a median of target price estimates from fourteen analysts, plus annual dividend, less broker fees. The Beta number showed this estimate subject to risk 6% less than the market as a whole.
Chevron Corp (CVX) was projected to net $173.82, based on the median of target price estimates from thirteen analysts, plus annual dividend, less broker fees. The Beta number showed this estimate subject to risk 5% less than the market as a whole.
Prudential Financial Inc (PRU) was projected to net $181.08, based on a median of target price estimates from thirteen analysts, plus dividends, less broker fees. The Beta number showed this estimate subject to risk 124% greater than the market as a whole.
Consolidated Edison Inc (ED) was projected to net $155.71 based on dividends, plus the median of target price estimates from nineteen brokers, less transaction fees. The Beta number showed this estimate subject to risk 77% less than the market as a whole.
The average net gain in dividend and price was estimated at 20.41% on $10k invested as $1k in each of these ten stocks. These gain estimates were subject to average risks 2% under the market as a whole.
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”.
90Kiplinger Most ReliableDividend Stocks On Earth By July Target Gains
90 Kiplinger Most ReliableDividend Stocks On Earth By July Yield
Actionable Conclusions (11-20): 10 Top InternationalDividend Aristocrats By Yield
Top ten International Dividend Aristocrats selected 6/25/20 by yield represented five of eleven Morningstar sectors. The top slots went to two from utilities, Red Electrica Corporacion SA (OTCPK:RDEIY) , and Enagas SA (OTCPK:ENGGY).
Third, fourth and sixth slots went to the energy sector: Enbridge Inc (ENB) , Exxon Mobil Corp (XOM) , and Canadian Natural Resources Ltd (CNQ) .
In fifth place was the first of three financial services representatives, Prudential Financial Inc . Two more from financial services emerged in ninth and tenth places by yield, Bank of Nova Scotia (BNS) , and Canadian Imperial Bank of Commerce (CM) .
The lone communications services representative placed seventh, AT&T Inc. (T) , and a lone consumer defensive representative, placed eighth, British American Tobacco PLC (BTI) to complete the pending International Aristocrats top ten by yield for July.
Actionable Conclusions: (21-30) Top Ten Kiplinger Most Reliable Dividend Dogs Showed 13.62%-39.23% July Price Upsides While (31) Two Lowly Down-siders Submerged.
To quantify top dog rankings, analyst price target estimates provided a “market sentiment” gauge of upside potential. Added to the simple high-yield metrics, the median of analyst target price estimates became another tool to dig out bargains.
Analysts Forecast A 5.36% Disadvantage For 5 Lowest Priced of 10 Highest Yield, Kiplinger Most Reliable International Dividend Aristocrats To July 2021
Ten top Kiplinger most reliable dividend dogs were culled by yield for this update. Yield (dividend / price) results provided by YCharts did the ranking.
As noted above, top ten Kiplinger most reliable dividend dogs screened 6/25/20 showing the highest dividend yields represented five of eleven in the Morningstar sector scheme.
Actionable Conclusions: Analysts Predicted 5 Lowest-Priced Of The Top Ten Highest-Yield Kiplinger World’s Most Reliable Dividend Dogs (32) Delivering 21.18% Vs. (33) 22.38% Net Gains by All Ten Come July, 2021
$5000 invested as $1k in each of the five lowest-priced stocks in the top ten Kiplinger most reliable dividend kennel by yield were predicted by analyst 1-year targets to deliver 5.36% LESS gain than $5,000 invested as $.5k in all ten. The fifth lowest-priced selection, Enbridge Inc (ENB), was projected to deliver the best net gain of 45.99%.
The five lowest-priced top-yield Kiplinger most reliable international dividend aristocrat dogs as of June 25 were: Red Electrica Corporacion (OTCPK:RDEIY); Enagas SA (OTCPK:ENGGY); Canadian Natural Resources LTD (CNQ); AT&T Inc (T); Enbridge Inc (ENB), with prices ranging from $9.70 to $30.31.
Five higher-priced Kiplinger world’s most reliable international dividend aristocrat dogs as of June 25 were: British American Tobacco PLC (BTI); Bank of Nova Scotia (BNS); ExxonMobil Corp (XOM); Prudential Financial Inc (PRU); Canadian Imperial Bank of Canada (CM), whose prices ranged from $39.31 to $68.15.
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.
Stocks listed above were suggested only as possible reference points for your International Aristocrat 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 YCharts. Dog photo: doggingtonpost.com
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Disclosure: I am/we are long T. 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.
Editor’s Note: This article discusses one or more securities that do not trade on a major U.S. exchange. Please be aware of the risks associated with these stocks.