14 Ideal June Dividend Buys To Profit For 2022

Foreword

This article is based on A Kiplinger Today special report entitled, Potent Picks to Profit in 2022. The six component articles in that report were:

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 June 17 data for the 97 dividend stocks populating those Potent Picks to Profit as parsed by YCharts.

The prices of 14 of those 97 dividend selections made the possibility of owning productive dividend shares from this collection more viable for first-time investors.

The 14 Dogcatcher ideal best-to-buy stocks were: Arbor Realty Trust (ABR); Starwood Property Trust (STWD); Magellan Midstream Partners LP (MMP); Enterprise Products Partners LP (EPD); Main Street Capital (MAIN); Kinder Morgan Inc (KMI); Pembina Pipeline Corp (PBA); Leggett & Platt Inc (LEG); Franklin Resources Inc (BEN); Walgreens Boots Alliance (WBA); Unilever PLC (UL); Amcor plc (AMCR); The Sage Group plc (OTCPK:SGPYY); eXp World Holdings Inc (EXPI).

Those fourteen 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.

Actionable Conclusions (1-10): Analysts Estimated 37.29% To 114.99% Net Gains For Ten ‘Potent Picks to Profit’ Dividend Stocks To June 2023

Four of ten top Potent Picks to Profit 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 May favorites was graded by Wall St. Wizards as 40% accurate.

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 June 2023 were:

Innovative Industrial Properties Inc (IIPR) was projected to net $1,148,86 based on the median of target estimates from seven analysts, plus dividends, less broker fees. The Beta number showed this estimate subject to risk/volatility 78% greater than the market as a whole.

Ares Management Corp (ARES) was projected to net $702.26, based on dividends, plus the median of target price estimates from eleven analysts, less broker fees. The Beta number showed this estimate subject to risk/volatility 5% greater than the market as a whole.

Arbor Realty Trust Inc was projected to net $694.51, based on the median of estimates from five analysts, plus dividends, less broker fees. The Beta number showed this estimate subject to risk/volatility 72% greater than the market as a whole.

ABB Ltd (ABB) was projected to net $482.56 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/volatility 2% greater than the market as a whole.

Starwood Property Trust Inc was projected to net $474.79, based on dividends, plus median target price estimates from seven analysts, less broker fees. The Beta number showed this estimate subject to risk/volatility 47% greater than the market as a whole.

Federal Realty Investment Trust (FRT) was projected to net $444.77, based on dividends, plus the median of target price estimates from eighteen analysts, less broker fees. The Beta number showed this estimate subject to risk/volatility 9% greater than the market as a whole.

Unilever PLC was projected to net $386.28 based on dividends, plus the median of target estimates from two brokers, less transaction fees. The Beta number showed this estimate subject to risk/volatility 63% less than the market as a whole.

Sanofi (SNY) was projected to net $385.26, based on dividends, plus the median of target price estimates from five analysts, less broker fees. The Beta number showed this estimate subject to risk/volatility 50% under the market as a whole.

Enterprise Products Partners LP was projected to net $374.20, based on the median of target price estimates from twenty-two analysts, plus dividends, less broker fees. The Beta number showed this estimate subject to risk/volatility 14% greater than the market as a whole.

Essex Property Trust Inc (ESS) was projected to net $372.88, based on dividends, plus the median of target price estimates from twenty-two analysts, less broker fees. The Beta number showed this estimate subject to risk/volatility 75% over the market as a whole.

The average net gain in dividend and price was estimated at 54.67% on $10k invested as $1k in each of these ten stocks. These gain estimates were subject to average risk/volatility 19% over 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”.

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

50 ‘Potent Picks’ For 2022 Dividends Per June Yields

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

Top ten ‘Potent Picks to Profit’ by yield in June 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]. the other real estate representatives placed second and seventh, Starwood Property Trust [2], and Innovative Industrial Properties [7].

Third place went to the first of four energy representatives, Magellan Midstream Partners LP [3]. The others placed fourth, sixth, and eighth, Enterprise Products Partners LP [4], Kinder Morgan Inc [6], and Pembina Pipeline Corp [8].

Position five was claimed by the financial services representative, Main Street Capital [5].

A consumer defensive representative placed ninth, Phillip Morris International (PM) [9], and the consumer cyclical member was tenth, Leggett & Platt Inc [10], to complete the top ten ‘Potent Picks to Profit’ for 2022 dividend pack for June.

Actionable Conclusions: (21-30) Ten Top ‘Potent Picks to Profit’ For 2022 Showed 30.49% to 109.53% Upsides While (31) No Downsiders were Noted Come June 2023.

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 0.68% Advantage For 5 Highest Yield, Lowest Priced, of 10 ‘Potent Picks to Profit’ Dividend Stocks For June

Ten top Kiplinger dividend ‘Potent Picks to Profit’ were culled by yield for this update. Yield (dividend / price) results provided by YCharts did the ranking.

As noted above, top ten Kiplinger, ‘Potent Picks to Profit’ stocks for 2022 screened 6/17/22, 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-Yield ‘Potent Picks to Profit’ for 2022 (32) Delivering 37.41% Vs. (33) 37.26% Net Gains by All Ten Come June 2023

$5000 invested as $1k in each of the five lowest-priced stocks in the top ten Kiplinger, ‘Potent Picks to Profit’ for 2022 by yield were predicted by analyst 1-year targets to deliver 0.68% more gain than $5,000 invested as $.5k in all ten. The highest-priced selection, Innovative Industrial Properties Inc, was projected to deliver the best net gain of 114.99%.

The five lowest-priced top-yield Kiplinger ‘Potent Picks to Profit’ for 2022 Dividend Dogs as of June 17 were: Arbor Realty Trust Inc, Kinder Morgan Inc, Starwood Property Trust Inc, Enterprise Product Partners Inc, and Leggett & Platt Inc, with prices ranging from $12.86 to $34.51.

Five higher-priced Kiplinger, ‘Potent Picks to Profit’ for 2022 Dividend Dogs as of June 17 were: Pembina Pipeline Corp, Main Street Capital, Magellan Midstream Partners LP, Phillip Morris International Inc, and Innovative Industrial Properties Inc, whose prices ranged from $34.79 to $108.34.

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. The article focuses on the top 30, so nearly two-thirds the original list of companies is neglected. Therefore, below is:

A Complete List of ‘Potent Picks to Profit’

Stocks grouped by yield.

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 14 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.

The 14 Dogcatcher ideal best-to-buy stocks were: Arbor Realty Trust; Starwood Property Trust; Magellan Midstream Partners LP; Enterprise Products Partners LP; Main Street Capital; Kinder Morgan Inc; Pembina Pipeline Corp; Leggett & Platt Inc; Franklin Resources Inc; Walgreens Boots Alliance Inc; Unilever PLC; Amcor plc; The Sage Group plc; eXp World Holdings Inc.

Those fourteen 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.

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

Since 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 above charts compare those eight plus the two at current prices (top chart) with the fair pricing of all ten top dogs conforming to that ideal (middle chart). The dollar and percentage differences between current and fair prices are detailed in the bottom chart.

With renewed downside market pressure to 28%, 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.

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