40Yr+Dividend Growers Sprout 8 Buys In June

Foreword

This article is based on the monthly lists of Champions, Contenders, and Challengers (CCC) created by the late David Fish and posted on dripinvesting.org as maintained Dividend Radar.

Any collection of stocks is more clearly understood when subjected to yield-based (dog catcher) analysis, these CCC lists are perfect for the dogcatcher process. Here is the current list of 58 longest annually increasing dividend stocks in the Champion-documented collection, per updated data from YCharts sampled June 16.

The Ides of March 2020 plunge in stock market prices devastated the Champions. However, none suspended or reduced dividend payouts. In fact, the drop in prices of 8 of the top 40 (listed by yield) reliable 40yr+ boosters made the possibility of owning productive dividend shares from this collection more viable for first-time investors back in May 2020.

As of June 16, 8 of the now 64 40-year dividend-growing stocks showed annual dividends from a $1K investment exceeding their single share price. They were: Universal Corp (UVV); Leggett & Platt Inc (LEG); Franklin Resources Inc (BEN); Walgreens Boots Alliance Inc (WBA); Telephone and Data Systems Inc (TDS); Old Republic International Corp (ORI); United Bankshares Inc (UBSI); Community Trust Bancorp Inc (CTBI). Some consider dividends from $1K invested exceeding share price a buy zone alert.

See the Afterword at the tail of this article for a list of June’s 64 stocks in their order of longevity raising dividends. The shortest is 40 years; the longest is 68. Recent vs fair price comparisons are also found there.

Actionable Conclusions (1-10): Analysts Estimate 25.97%-56.39% Net Gains For Ten Top 40yr+ Dividend Growing Dogs For June

Five of ten top-yield 40yr+Dividend-increasing stocks were also among the top 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 June dogs was graded by Wall St. Wizards as 50% accurate this month.

The following 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: target prices from less than two analysts were not applied.

Ten probable profit-generating trades projected to June 16, 2023 were:

Stanley Black & Decker Inc (SWK) was projected to net $563.87 based on the median of target price estimates from fifteen analysts, plus annual dividend, less broker fees. The Beta number showed this estimate subject to risk/volatility 38% over the market as a whole.

Telephone and Data Systems Inc was projected to net $522.65 based on target price estimates from four analysts, less broker fees. The Beta number showed this estimate subject to risk/volatility 7% more than the market as a whole.

Emerson Electric Co (EMR) was projected to net $363.55 based on dividends, plus the median of target estimates from twenty-two brokers, less transaction fees. The Beta number showed this estimate subject to risk/volatility 42% greater than the market as a whole.

Old Republic international was projected to net $349.71, based on the median of target price estimates from two analysts, plus annual dividend, less broker fees. The Beta number showed this estimate subject to risk/volatility 14% less than the market as a whole.

Medtronic plc (MDT) was projected to net $331.17, based on dividends, plus the median of target price estimates from twenty analysts, less broker fees. The Beta number showed this estimate subject to risk/volatility 26% under the market as a whole.

Leggett & Platt Inc was projected to net $309.55, based on dividends, plus a median of the target price estimates from three analysts, less broker fees. The Beta number showed this estimate subject to risk/volatility 29% over the market as a whole.

Sonoco Products Co (SON) was projected to net $300.38, based on a median of target price estimates from six analysts, plus dividends, less broker fees. The Beta number showed this estimate subject to risk/volatility 24% less than the market as a whole.

Community Trust Bancorp was projected to net $296.64, based on dividends, plus the median of target price estimates from two analysts, less broker fees. The Beta number showed this estimate subject to risk/volatility 24% under the market as a whole.

Target Corp (TGT) was projected to net $284.81, based on the median of target estimates from twenty-seven analysts, plus dividends, less broker fees. The Beta number showed this estimate subject to risk/volatility 4% less than the market as a whole.

3M Co (MMM) was projected to net $259.72, based on dividends, plus median target price estimates from eighteen analysts, less broker fees. The Beta number showed this estimate subject to risk/volatility 8% less than the market as a whole.

The average net gain in dividend and price was estimated at 35.82% on $10k invested as $1k in each of these ten stocks. These gain estimates were subject to average risk/volatility 1% more than 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 Reliable 40yr+ Dividend-Growing Stocks Show June Target Gains

50 May Yields From 40yr+ Dividend Hiking Stocks

Actionable Conclusions (11-20): 10 Top 40yr+ Dividend Boosting Stocks By Yield

Top ten Reliable 40yr+ Dividend Stocks by yield for June represented seven of eleven Morningstar sectors. The consumer defensive sector representative placed first, Universal Corp [1]. One consumer cyclical outfit placed second, Leggett & Platt [2].

Thereafter four financial services representatives placed third, seventh, eighth and ninth: Franklin Resources Inc [3], Old Republic International Corp [7], United Bankshares Inc [8], and Community Trust Bancorp Inc [9].

Fourth place was claimed by the lone healthcare representative, Walgreens Boots Alliance [4].

The communication services representative placed fifth, Telephone and Data Systems [5]. One industrials sector representative placed sixth, 3M Co [6].

Finally, one energy sector member claimed tenth, Exxon Mobil Corp (XOM) [10] to complete the 40yr+ Dividend Growing Stocks top ten by yield in this June survey.

Actionable Conclusions: (21-30) Top Ten 40yr+ Dividend Growing Dogs Showed 24.21%-54.28% Upsides, While (32) No Down-siders Appeared Per Broker Estimates

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

Analysts Forecast A 24.19% Advantage For 5 Highest Yield, Lowest Priced Of The Top 10 40yr+ Dividend Growing Dogs To June 2023

Ten top 40yr+ Dividend growing dogs were culled by yield (dividend/price). Results provided by YCharts did the ranking.

As noted above, top ten Reliable 40yr+ Dividend dogs screened 6/16/21 showing the highest dividend yields represented seven of eleven sectors in the Morningstar scheme.

Actionable Conclusions: Analysts Predicted 5 Lowest-Priced Of The Ten Highest-Yield Reliable 40yr+ Dividend Growing Dogs (31) Delivering 31.77% Vs. (32) 25.58% Net Gains by All Ten Come June 2023

$5000 invested as $1k in each of the five lowest-priced stocks in the top ten 40yr+Dividend kennel by yield were predicted by analyst 1-year targets to deliver 24.19% more gain than $5,000 invested as $.5k in all ten. The very lowest-priced selection, Telephone and Data Systems was projected to deliver the best net gain of 52.26%.

The five lowest-priced top-yield 40yr+ Dividend dogs as of June 16 were: Telephone and Data Systems Inc; Old Republic International Corp; Franklin Resources Inc; Leggett & Platt Inc; United Bankshares Inc, with prices ranging from $15.15 to $33.73.

Five higher-priced Kiplinger top-yield most reliable 40yr+ dividend dogs as of June 16 were: Community Trust Bancorp Inc; Walgreens Boots Alliance Inc; Universal Corp; Exxon Mobil Corp; 3M Co, whose prices ranged from $39.49 to $130.94.

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 15% accurate on the degree of change.

Afterword

Here’s All 62 Dogs by Years Paying Growing Dividends

Finally, in case you missed this tidbit in the foreword, here it is to close out the afterword for this article: This pre-September list showed 7 of the 58 40-year dividend-hiker stocks show annual dividends from a $1K investment exceeding their single share prices. They were: Universal Corp; Franklin Resources Inc; Leggett & Platt Inc; Walgreens Boots Alliance Inc; United Bankshares Inc; Telephone and Data Systems Inc; Old Republic International Corp. Some consider dividends from $1K invested exceeding share price a buy zone alert.

Here is How All Ten Top 40yr+ Boosted Dividend Dogs Could Become Fair-Priced

Since eight of the top ten 40Yr+ Dividend Dog shares were recently priced less than the annual dividends paid out from a $1K investment, the above charts compare those eight plus two at recent prices (top chart) with the fair pricing of all ten top dogs conforming to (or exceeding) that ideal (middle chart). The dollar and percentage differences between recent and fair prices are detailed in the bottom chart.

With renewed downside market pressure to 41.05%, it is possible for all ten highest-yield 40Yr+ Dividend Boosted stocks, to become fair-priced with their annual yield (from $1K invested) meeting or exceeding their single share prices. A mere 5% drop in prices recently caused eight out of ten to become fair priced.

A follow-up article identifying the ‘Safer’ 40yr+ Durable Dividend dogs will appear next week after June 22 in the Dividend Dogcatcher pages of Seeking Alpha’s Marketplace.

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 stock 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 YCharts. Open source dog silhouette art from dividenddogcatcher.com.