13 Potent Picks Are November’s Ideal Dividend Buys

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Foreword

This article is based on A Kiplinger Today special report entitled, Potent Picks to Profit in 2022. The titles and links to that content follow:

65 Best Dividend Stocks You Can Count On in 2022

Yield isn’t everything when it comes to finding the best dividend stocks. Income investors know there’s no substitute for regular dividend increases over the long haul.

The Pros Love Value … And These 15 Cheap Stocks

Investors looking for stability in the new year may want to consider value stocks. Here are 15 of the best-rated ones for 2022.

The 15 Best Mid-Cap Stocks to Buy for 2022

Mid-caps are the market’s so-called ‘sweet spot,’ offering up an ideal combination of financial stability and growth potential.

10 European Plays for an Income-Rich 2022

A recent pullback in the global equities market has opened the door for investors to buy some of the top dividend-paying European stocks at a discount.

9 High-Yield Stocks Doling Out 5% or More

These high-income stocks deliver on headline yield, offering up between roughly 5% and 9%. But just as important: they also have the financial fortitude to keep those payouts coming.

Protect Yourself: 6 Sturdy Defensive Picks

A volatile market has investors seeking safety. These top-rated defensive stocks could act as shelter from the storm.

Any collection of stocks is more clearly understood when subjected to yield-based (dog catcher) analysis, this collection of Kiplinger Potent Picks to Profit for 2022 is perfect for the dogcatcher process. Below are the October 28 data for the 97 dividend stocks populating those Potent Picks to Profit as parsed by YCharts.

The prices of 13 of those 97 dividend selections, turned the possibility of owning productive dividend shares from this collection a reality for first-time investors.

The 13 Dogcatcher ideal best to buy November stocks were: Arbor Realty Trust (ABR); Starwood Property Trust (STWD); Magellan Midstream Partners, L.P. (MMP); Enterprise Products Partners L.P. (EPD); Main Street Capital (MAIN); Kinder Morgan Inc. (KMI); Pembina Pipeline Corp. (PBA); Leggett & Platt Inc. (LEG); Walgreens Boots Alliance Inc. (WBA); Franklin Resources Inc. (BEN); Amcor plc (AMCR); ABB Ltd (ABB); eXp World Holdings Inc. (EXPI).

Those thirteen 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 “look closer to maybe buy” opportunity.

Which of the 13 are “safer” dividend dogs? To find the answer, seek-out my “Safer” November Dividend Dogcatcher follow-up detailing the “safest” of these stocks for 2022 in the Seeking Alpha Marketplace appearing on or about November 10. To get there, simply click on the link in the last Summary bullet point above.

Actionable Conclusions (1-10): Analysts Estimated 37.01% To 90.85% Net Gains From Ten ‘Potent Picks to Profit’ Dividend Stocks To November 2023

Five of ten top Potent Pick 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 November favorites was graded by Wall St. Wizards as 50% accurate.

PPP22 (1A) GAINERS NOV 22-23

Source: YCharts.com

Estimated dividends from $1000 invested in each of the highest yielding Potent Picks to Profit stocks, added to the median of aggregate one-year target prices from analysts (as reported by YCharts), generated the following list. Note that one-year target prices by lone-analysts were not included. Ten probable profit-generating trades projected to November 2023 were:

Innovative Industrial Properties Inc. (IIPR) was projected to net $579.10 based on the median of target estimates from 8 analysts, plus dividends, less broker fees. The Beta number showed this estimate subject to risk/volatility 56% greater than the market as a whole.

Sanofi (SNY) was projected to net $366.26, based on dividends, plus the median of target price estimates from 6 analysts, less broker fees. The Beta number showed this estimate subject to risk/volatility 46% under the market as a whole.

Essex Property Trust Inc. (ESS) was projected to net $332.25, based on the median of estimates from 23 analysts, plus dividends, less broker fees. The Beta number showed this estimate subject to risk/volatility 21% less than the market as a whole.

Enterprise Products Partners L.P. was projected to net $330.59, 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 14% greater than the market as a whole.

Arbor Realty Trust Inc. was projected to net $324.78, based on dividends, plus the median of target price estimates from 5 analysts, less broker fees. The Beta number showed this estimate subject to risk/volatility 87% greater than the market as a whole.

Starwood Property Trust Inc. was projected to net $318.59, based on dividends, plus median target price estimates from 8 analysts, less broker fees. The Beta number showed this estimate subject to risk/volatility 48% greater than the market as a whole.

Stanley Black & Decker Inc. (SWK) was projected to net $279.05, based on dividends, plus the median of target price estimates from 14 analysts, less broker fees. The Beta number showed this estimate subject to risk/volatility 28% over the market as a whole.

ABB Ltd was projected to net $263.27 based on the median of target price estimates from 4 analysts, plus annual dividend, less broker fees. The Beta number showed this estimate subject to risk/volatility 7% greater than the market as a whole.

Federal Realty Investment Trust (FRT) was projected to net $206.96, based on dividends, plus the median of target price estimates from 19 analysts, less broker fees. The Beta number showed this estimate subject to risk/volatility 12% greater than the market as a whole.

Main Street Capital (MAIN) was projected to net $194.29 based on dividends, plus the median of target estimates from 4 brokers, less transaction fees. The Beta number showed this estimate subject to risk/volatility 33% greater than the market as a whole.

The average net gain in dividend and price was estimated at 31.93% on $10k invested as $1k in each of these ten stocks. These gain estimates were subject to average risk/volatility 22% over the market as a whole.

PPP22 (2) NOV 22-23 Open source dog art DDC1 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.”

50 ‘Potent Picks to Profit’ In November Per Analyst Target Data

PPP22 (3A) 1-50BYTARGETS NOV 22-23

Source: YCharts.com

50 ‘Potent Picks’ For 2022 Dividends Per November Yields

PPP22 (3B) 1-50BYYIELD NOV 22-23

Source: YCharts.com

Actionable Conclusions (11-20): Ten Top ‘Potent Picks to Profit’ By Yield For 2022

Top ten “Potent Picks to Profit” by yield for November represented five of eleven Morningstar sectors. First place was held by the first of three real estate sector members: Arbor Real Estate Trust, Inc. [1]. Other real estate representatives placed second and sixth, Starwood Property Trust [2], and Innovative Industrial Properties [6].

Third place went the first of four energy representatives, Magellan Midstream Partners, L.P. [3]. The others placed fourth, seventh and eighth, Enterprise Products Partners L.P. [4], Kinder Morgan Inc. [7], and Pembina Pipeline Corp. [8].

Fifth place was claimed by the financial services representative, Main Street Capital [6], while ninth place went to the consumer defensive representative placed tenth, Philip Morris International (PM) [9].

A consumer cyclical member took the tenth slot, Leggett & Platt Inc [10], to complete the top ten “Potent Picks to Profit” for 2022 dividend pack for November.

Actionable Conclusions: (21-30) Ten Top ‘Potent Picks to Profit’ For 2022 Showed 13.79% to 52.02% Upsides While (31) Five Down-siders Sagged -1.63% to -14.76%

PPP22 (4) UP/DNSIDES NOV 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, median analyst target price estimates became another tool to dig out bargains.

Analysts Forecast A 3.11% Advantage For 5 Highest Yield, Lowest Priced, of 10 “Potent Picks to Profit” Dividend Stocks For November

Ten top Kiplinger dividend “Potent Picks to Profit” yield (dividend / price) results provided by YCharts produced the following ranking.

PPP22 (5)10LIST NOV 22-23

Source: YCharts.com

As noted above, top ten Kiplinger, “Potent Picks” stocks for 2022 screened 10/28/22, 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-YieldPotent Picks to Profit” for 2022 (32) Delivering 23.75% Vs. (33) 23.03% Net Gains by All Ten Come November 2023

Source: YCharts.com PPP22 (6) 10GAINS NOV 22-23

Source: YCharts.com

$5000 invested as $1k in each of the five lowest-priced stocks in the top ten Kiplinger, “Potent Picks” for 2022 by yield were predicted by analyst 1-year targets to deliver 3.11% more gain than $5,000 invested as $.5k in all ten. The tenth lowest-priced selection, Innovative Industrial Properties Inc., was projected to deliver the best net gain of 57.91%.

PPP22 (7)10BYPRICE NOV 22-23

Source: YCharts.com

The five lowest-priced top-yield Kiplinger “Potent Picks to Profit” for 2022 Dividend Dogs as of October 28 were: Arbor Realty Trust Inc.; Kinder Morgan Inc.; Starwood Property Trust Inc., Enterprise Products Partners Inc.; Pembina Pipeline Corp., with prices ranging from $13.83 to $32.58.

Five higher-priced Kiplinger, “Potent Picks to Profit” for 2022 Dividend Dogs as of October 28 were: Leggett & Platt Inc.; Main Street Capital; Magellan Midstream Partners, L.P.; Philip Morris International Inc.; Innovative Industrial Properties Inc., whose prices ranged from $33.42 to $104.46.

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 Kiplinger, “Potent Picks to Profit” for 2022 and focuses on the top 30 so over two thirds the original list of 118 companies is neglected. Therefore, below is:

A Complete List of “Potent Picks to Profit”

Stocks ranked by yield

PPP22 118 (8)BY YIELD NOV22-23

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 13 of these 118 Kiplinger, “Potent Picks to Profit” for 2022 made the possibility of owning productive dividend shares from this collection more viable for first-time investors.

PPP22 (9)13 IDEAL PPP NOV22-23

Source: YCharts.com

Those thirteen all live up to the ideal of having their annual dividends from a $1K investment equal or exceed their single share prices. Many investors see this condition as “look closer to maybe buy” opportunity.

Which of the 13 are “safer” dividend dogs? To find the answer find my “Safer” November Dividend Dogcatcher follow-up detailing these stocks for 2022 in the Seeking Alpha Marketplace appearing on or about November 10. Simply click on the link in the last Summary bullet point at the top of this article.

How All Ten Top “Potent Picks to Profit” For 2022 Stocks Could Become Ideal Fair Priced Dogs

PPP22 (10) RECENT vs FAIR PR NOV22-23

Source: YCharts.com

Eight of the top ten Kiplinger, Potent Picks for Profit stocks for 2022 shares are now priced less than the annual dividends paid out from a $1K investment. The dollar and percentage differences between current and fair prices are detailed in the top chart. Eight ideal fair priced stocks plus the two at current prices are shown in the middle chart. Finally, the fair pricing of all ten top dogs conforming to that ideal are the subject of the bottom chart.

With renewed downside market pressure to 18.79%, it is possible for all ten highest-yield Kiplinger Potent Picks for Profit 2022 stocks, to become fair-priced with their annual yield (from $1K invested) meeting or exceeding their single share prices. This pack got a nice 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 Thomson/First Call in YahooFinance. Dog image:Open source dog art from dividenddogcatcher.com

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