Buy 11 Some’re Sizzler September DiviDogs

Foreword

This article is based on five Kiplinger investing articles aimed at finding “the best”:

The 15 Best Stocks For the Rest of 2022

The lesson of the past two years: be ready for anything. Our 15 best stocks to buy for the rest of 2022 reflect several possible outcomes for the second half of this tumultuous year. By: Charles Lewis Sizemore, CFA, June 21, 2022

The 15 Best Value Stocks to Buy Now

A roller-coaster 2022 has sent a lot of deserving names into bargain territory. Here are 15 top-rated value stocks to buy at the moment. By: Jeff Reeves, April 26, 2022

12 of the Best Stocks You Haven’t Heard Of

The market is peppered with undiscovered gems boasting stable fundamentals and cheap valuations. Here are 12 of the best stocks flying under the radar. By: Lisa Springer, November 2, 2021

10 Best Stocks for Rising Interest Rates

The Federal Reserve has signaled in no uncertain terms that interest rates will head higher in 2022. Here are 10 of the best stocks for this environment. By: Jeff Reeves, April 4, 2022

Four Cool Stocks for Dividends, Defense and Inflation Protection

Soft drink equities could be a great place to hide out amid heightened market volatility and rapidly rising prices. By: Dan Burrows, March 21, 2022

Any collection of stocks is more clearly understood when subjected to this yield-based (dog catcher) analysis, these five Kiplinger articles projecting ‘best’ reliable dividend stocks for investors are perfect for the dogcatcher process. Here is the September 6 data for 40 dividend paying stocks of 53 screened and the 11 living up to the dogcatcher ‘ideal’ in this Kiplinger collection. (Last month there were eight in the ‘ideal’ zone. Hence, the Hot reference in the headline.)

The Ides of March 2020 plunge in the stock market took its toll on stocks over two years and six months ago. However, a continued escalation in prices for these forty dividend stocks made the possibility of owning productive dividend shares from this collection more remote for first-time investors.

September, 2022 shows a glimmer of light from eleven stocks emerging as dogcatcher ideal candidates. They are: Ares Capital Corp (ARCC); AllianceBernstein Holding LP (AB); Energy Transfer LP (ET); Universal Health Realty Income Trust (UHT); Marine Products Corp (MPX); Navient Corp (NAVI); PacWest Bancorp (PACW); Corning Inc (GLW); Miller Industries Inc (MLR); Tiptree Inc (TIPT). Their prices settled between $2 and $71 below the annual dividend payout from a $1K investment.

Actionable Conclusions (1-10): Brokers Estimated Top-Ten Kiplinger Some’re Sizzlers Dividend Stocks Could Net 27.69% to 50.00% Gains By September 2023

Four of the tops-by-yield Kiplinger Some’re Sizzlers Stocks (tinted in the chart below) were also the top gainers for the coming year based on analyst 1-year targets. Thus, the top yield dog strategy for this group, as graded by analyst estimates for this month, proved 40% accurate.

Estimated dividend-returns from $1000 invested in each of the highest-yielding stocks and their aggregate one-year analyst median-target prices, as reported by YCharts, created the 2022-23 data points. However, one year target-prices by lone analysts were not counted. The resulting ten probable best profit-generating Some’re Sizzlers Stocks projected to September 6, 2023, by that reckoning, were:

Air Lease Corp (AL) netted $500.01 based on estimates from 8 analysts, plus dividends less broker fees. The Beta number showed this estimate subject to risk/volatility 81% greater than the market as a whole.

Huntsman Corp (HUN) netted $488.17 based on dividends plus a median target price estimate from 15 analysts, less broker fees. The Beta number showed this estimate subject to risk/volatility 15% more than the market as a whole.

Energy Transfer LP netted $443.18 based on the median of target estimates from 17 analysts, less broker fees. The Beta number showed this estimate subject to risk/volatility 92% greater than the market as a whole.

PacWest Bancorp netted $389.37 based on the median of target price estimates from 19 analysts plus dividends less broker fees. The Beta number showed this estimate subject to risk/volatility 67% more than the market as a whole.

Digital Realty Trust (DLR) netted $339.37 based on the median of target estimates from 19 analysts, less broker fees. The Beta number showed this estimate subject to risk/volatility 67% less than the market as a whole.

Navient Corp net $285.88 based on the median of target estimates from 9 analysts, less broker fees. The Beta number showed this estimate subject to risk/volatility 67% greater than the market as a whole.

Lowe’s Companies Inc (LOW) netted $284.60 based on the median of target prices estimated by 26 analysts, plus estimated dividends, less broker fees. The Beta number showed this estimate subject to risk/volatility 23% greater than the market as a whole.

Prologis Inc (PLD) netted $283.67 based on the median of target estimates from 16 analysts, less broker fees. The Beta number showed this estimate subject to risk/volatility 12% less than the market as a whole.

Discover Financial Services (DFS) netted $278.73 based on estimates from 17 analysts, plus dividends, less broker fees. The Beta number showed this estimate subject to risk/volatility 43% greater than the market as a whole.

Tempur Sealy International (TPX) netted $276.88 based on the median of target estimates from ten analysts, less broker fees. The Beta number showed this estimate subject to risk/volatility 83% greater than the market as a whole.

The average net-gain in dividend and price was 35.7% on $10k invested as $1k in each of these ten Kiplinger ‘safer’ Some’re Sizzler stocks. This gain estimate was subject to average risk/volatility 25% greater than the market as a whole.

The Dividend Dogs Rule

The “dog” moniker was earned by stocks 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 specifically, these are, in fact, best called, “underdogs”.

Top 43 Some’re Sizzlers Dividend Stock Picks By Broker Targets

This scale of broker-estimated upside (or downside) for stock prices provides a scale of market popularity. Note: no broker coverage or 1 broker coverage produced a zero score on the above scale. This scale can be taken as an emotional component as opposed to the strictly monetary and objective dividend/price yield-driven report below. As noted above, these scores may also be taken as contrarian.

Top 41 Some’re Sizzlers Dividend Stock Picks By Yield

Actionable Conclusions (11-20): Ten Top Stocks By Yield Are The September Dividend Dog Pack

Top ten Some’re Sizzlers Dividend Stocks selected 9/6/22 by yield again represented just four of eleven Morningstar sectors. First place was secured by the first of four financial services representatives, Ares Capital Corp [1]. The other three placed second, sixth and tenth, AllianceBernstein Holding LP [2], Navient Corp [8], and PacWest Bancorp [10].

One energy representatives placed third, Energy Transfer LP [3]. Then

Three real estate members placed fourth, seventh, and ninth: Universal Health Realty Income Trust [4], Realty Income Corp (O) [7], and Digital Realty Trust Inc [9].

Finally, two consumer cyclical representatives placed fifth, and eighth: Marine Products Corp [5], and Carter’s Inc (CRI) [8], to complete this Some’re Sizzlers Dividend Stock top ten, by yield, for September.

Actionable Conclusions: (21-30) Ten Some’re Sizzlers Dividend Stocks Showed 25.09% To 48.97% Upsides To September, 2023, With (31) No Losers

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

Analysts Estimated A 28.44% Advantage For 5 Highest Yield, Lowest Priced of Top-Ten Some’re Sizzlers Stocks To September, 2023

Ten top Some’re Sizzlers Stocks were culled by yield for this monthly update. Yield (dividend/price) results verified by YCharts did the ranking.

As noted above, top-ten Some’re Sizzlers Dogs selected 9/6/22, showing the highest dividend yields, represented four of eleven sectors in the Morningstar scheme.

Actionable Conclusions: Analysts Estimated The 5 Lowest-Priced Of Ten Highest-Yield Some’re SizzlersDividend Stocks (33) Delivering 29.26% Vs. (34) 22.78% Net Gains by All Ten by September, 2023

$5000 invested as $1k in each of the five lowest-priced stocks in the top ten Some’re Sizzlers dividend pack by yield were predicted by analyst 1-year targets to deliver 28.44% more gain than $5,000 invested as $.5k in all ten. The second lowest-priced Some’re Sizzlers top-yield stock, Energy Transfer LP, was projected to deliver the best net gain of 44.32%.

The five lowest-priced top-yield Some’re Sizzlers dividend stocks for September 6 were: Marine Products Corp; Energy Transfer LP; Navient Corp; Ares Capital Corp; Packets Bancorp, with prices ranging from $10.47 to $25.12

The five higher-priced top-yield Some’re Sizzlers dividend stocks for September 6 were: AllianceBernstein Holding LP; Universal Health Realty Income Trust; Realty Income Corp; Carter’s Inc; Digital Realty Trust Inc, whose prices ranged from $42.65 to $119.30.

This 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.

Afterword

If somehow you missed the suggestion of the eight stocks ripe for picking at the start of the article, here is a repeat of the list at the end:

In the current market advance, dividends from $1K invested in the eight stocks listed above met or exceeded their single share prices as of 7/27/22.

As we are four months past the second anniversary of the 2020 Ides of March dip, the time to snap up those eight top yield Some’re Sizzlers dogs is now… unless another big bearish drop in price looms ahead. (At which time your strategy would be to add to your holdings.)

To learn which of these eight ideally-priced opportunities are “safer” to buy (namely which have ready cash to pay their dividends). Use the last bullet in the Summary above to navigate to my dividend dogcatcher follow-up article after August 8 in the SA Marketplace.

Recent vs Fair Top Ten Some’re Sizzlers Stock Prices

Since five of the top-ten Some’re Sizzlers Dividend shares are priced less than the annual dividends paid out from a $1K investment, the following charts compare the five at recent prices (top chart) with the break-even pricing of all ten (middle chart) concluding with the dollar and percent variants to all ten top dogs conforming to (but not exceeding) the dogcatcher ideal (bottom chart).

The bottom chart is an indicator of how low the five non-ideal stocks must adjust to become fair-priced. Which means conforming the standard of dividends from $1K invested exceeding the current single share price.

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 Some’re Sizzlers dog 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.