9 Ideal Inflation Buster Dividend Stocks To Buy In July

Foreword

This article is based on five Kiplinger, and Barron’s articles, aimed at finding “Inflation Busting”, stocks for 2022. The title and links to the articles are below:

24 Pricing Power Performers

“With inflation pressures surging, pricing power relative to cost exposures will be a key theme and source of [absolute outperformance] for global equity markets,” writes the UBS Equity Strategy team.—by: Dan Burrows April 14, 2022

7 REITS with Rising Dividends

REIT dividends are expected to post double-digit percentage growth this year, making the yield-friendly sector all the more attractive.—by: Lisa Springer April 13, 2022

10 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

5 Stocks To Stave Off Sizzling inflation

Income investors like utility stocks for their stability and generous dividends. Here are 12 top-rated ones to watch in the new year. —by: Dan Burrows February 10, 2022

6 Dividend Stocks Whip Inflation

The hot new investment theme isn’t socially nuanced crypto space finance or metaverse charging networks for virtual vehicles. It’s dividends—cash payments to shareholders.

To find more dividend growers, Barron’s used an approach inspired by the Federal Reserve’s so-called dot plot, or path of expected interest rate hikes. We screened the S&P 500 for companies that analysts predict will increase payments nicely in the years ahead. Here are six. —By Jack Hough Updated April 24, 2022 / Original April 22, 2022

Any collection of stocks is more clearly understood when subjected to yield-based (dog catcher) analysis, this collection of Kiplinger, and Barron’s articles, aimed at finding the “Inflation Busting”, stocks for 2022 is perfect for the dogcatcher process. Below are the July 7 “Inflation-Busters” as parsed by YCharts.

The prices of 9 of these 48 Kiplinger, and Barron’s dividend selections, made the possibility of owning productive dividend shares from this collection more viable for first-time investors.

Those 9 Dogcatcher ideal “Inflation Busting” stocks for July are: BHP Group Ltd. (BHP); Arbor Realty Trust Inc. (ABR); AllianceBernstein Holding (AB); Ares Capital Corp (ARCC); British American Tobacco p.l.c. (BTI); VICI Properties Inc. (VICI); Navient Corp. (NAVI); PacWest Bancorp (PACW); The AES Corp. (AES).

Those nine 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 9 are ‘safer’ dividend dogs? To find the answer find my ‘Safer’ July Dividend Dogcatcher follow-up detailing these Kiplinger, and Barron’s “Inflation Busting”, stocks for 2022 in the Seeking Alpha Marketplace appearing on or about July 16. Simply click on the link in the last Summary bullet point above.

Actionable Conclusions (1-10): Analysts Estimated 34.09% To 77.93% Net Gains For Ten Top ‘Inflation Busting’ Dividend Stocks To July 2023

Four of ten top “Inflation Buster” 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 July dogs was graded by Wall St. Wizards as 40% accurate.

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

Taiwan Semiconductor Manufacturing (TSM) was projected to net $779.29, based on the median of target estimates from eight analysts, plus dividends, less broker fees. The Beta number showed this estimate subject to risk/volatility 1% less than the market as a whole.

PacWest Bancorp was projected to net $651.28 based on the median of target price estimates from ten analysts, plus annual dividend, less broker fees. The Beta number showed this estimate subject to risk/volatility 44% greater than the market as a whole.

Arbor Realty Trust Inc. was projected to net $524.65, based on the median of target price estimates from five analysts, plus dividends, less broker fees. The Beta number showed this estimate subject to risk/volatility 77% greater than the market as a whole.

Broadcom Inc. (AVGO) was projected to net $400.33, based on dividends, plus the median of target price estimates from twenty-three analysts, less broker fees. The Beta number showed this estimate subject to risk/volatility 9% above the market as a whole.

Alexandria Real Estate Equities Inc. (ARE) was projected to net $387.76, based on dividends, plus the median of target price estimates from twelve analysts, less broker fees. The Beta number showed this estimate subject to risk/volatility 12% less than the market as a whole.

Fifth Third Bancorp (FITB) was projected to net $378.08, based on dividends, plus the median of target price estimates from twenty-one analysts, less broker fees. The Beta number showed this estimate subject to risk/volatility 33% greater than the market as a whole.

Discover Financial Services (DFS) was projected to net $372.75, based on dividends, plus the median of target price estimates from nineteen analysts, less broker fees. The Beta number showed this estimate subject to risk/volatility 48% over the market as a whole.

ConocoPhillips (COP) was projected to net $371.10, based on dividends, plus median target price estimates from twenty-five analysts, less broker fees. The Beta number showed this estimate subject to risk/volatility 41% greater than the market as a whole.

Navient Corp. was projected to net $355.53 based on dividends, plus the median of target estimates from nine brokers, less transaction fees. The Beta number showed this estimate subject to risk/volatility 85% greater than the market as a whole.

NexPoint Residential Trust (NXRT) was projected to net $340.92, based on the median of estimates from seven analysts, plus dividends, less broker fees. The Beta number showed this estimate subject to risk/volatility 3% greater than the market as a whole.

The average net gain in dividend and price was estimated at 45.62% on $10k invested as $1k in each of these ten stocks. These gain estimates were subject to average risk/volatility 33% 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”.

48 Inflation Busters For 2022 Per July Analyst Target Data

48 Inflation Busters 2022 Dividends By July Yields

Actionable Conclusions (11-20): Ten Top Inflation Busters By Yield For 2022

Top ten 2022 “Inflation Busting” stocks by yield in July represented four of eleven Morningstar sectors. First place went to the lone basic materials member, BHP Group Ltd.

Second, and seventh places were claimed by real estate sector representatives, Arbor Realty Trust Inc. [2], Vici Properties Inc. [7].

Positions three, four, and eight through ten were claimed by financial services sector members: AllianceBernstein Holding L.P. [3]; Ares Capital Corp. [4]; Navient Corp. [8]; PacWest Bancorp [9]; Fifth Third Bancorp [10].

Finally, consumer defensive stocks took the fifth and seventh slots on this list, British America Tobacco p.l.c. [5], and Philip Morris International Inc. (PM) [7], to complete the top ten “Inflation Busters” for 2022 dividend pack as of July.

Actionable Conclusions: (21-30) Ten Top “Inflation Busters” For 2022 Dividend Payers Showed 32.33%-76.69% Upsides While (31) No Down-siders Stumbled In July

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 30.21% Advantage For 5 Highest Yield, Lowest Priced, of 10 Inflation Busting Stocks for 2022

Ten top Kiplinger, and Barron’s dividend selections, aimed at finding the “Inflation Busters” for 2022 were culled by yield for this update. Yield (dividend / price) results provided by YCharts did the ranking.

As noted above, top ten Kiplinger, and Barron’s dividend selections, aimed at finding the best Inflation Buster stocks for 2022 screened 7/7/22, showing the highest dividend yields, represented four of eleven in the Morningstar sector scheme.

Actionable Conclusions: Analysts Predicted 5 Lowest-Priced Of The Top Ten Highest-Yield Best Bets for 2022 Dividend Stocks (32) Delivering 39.46% Vs. (33) 30.31% Net Gains by All Ten Come July 2022

$5000 invested as $1k in each of the five lowest-priced stocks in the top ten Kiplinger, Barron’s, and Dogs of the Dow dividend selections, aimed at finding the “Inflation Busters” for 2022 by yield were predicted by analyst 1-year targets to deliver 30.31% more gain than $5,000 invested as $.5k in all ten. The fourth lowest-priced selection, PacWest Bancorp, was projected to deliver the best net gain of 65.13%.

The five lowest-priced top-yield Kiplinger, and Barron’s dividend selections, aimed at finding the “Inflation Busters” for 2022 as of July 7 were: Arbor Realty Trust Inc.; Navient Corp.; Ares Capital Corp.; PacWest Bancorp; VICI Properties Inc., with prices ranging from $13.76 to $30.97.

Five higher-priced Kiplinger, and Barron’s dividend selections, aimed at finding the “Inflation Busters” for 2022 as of July 7 were: Fifth Third Bancorp; British American Tobacco p.l.c.; AllianceBernstein Holding L.P.; BHP Group Ltd.; Philip Morris International Inc., whose prices ranged from $33.92 to $94.99.

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 48 Kiplinger, and Barron’s “Inflation Buster“ selections for 2022. The article focuses on the top 30 so dividend payers. Thus, nearly one third of the original list of companies is neglected. Therefore, below is the complete list of 48 stocks grouped by source.

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 9 of these 48 Kiplinger, and Barron’s dividend selections, as “Inflation Buster”, stocks for 2022 made the possibility of owning productive dividend shares from this collection more viable for first-time investors.

Those 9 Dogcatcher ideal “inflation Busting” dividend stocks for July are:

Those nine 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 9 are ‘safer’ dividend dogs? To find the answer find my ‘Safer’ July Dividend Dogcatcher follow-up detailing these Kiplinger, and Barron’s Inflation Busting, stocks for 2022 in the Seeking Alpha Marketplace appearing on or about July 16. Simply click on the link in last Summary bullet point at the top of this article.

How All Ten Top “Inflation Buster” 2022 Stocks Could Become Ideal Fair Priced Dogs

Since nine of the top ten Kiplinger, and Barron’s “Inflation Buster”, 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 one at recent prices (top chart) with the fair pricing of all ten top dogs conforming to 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 26%, it is possible for all ten highest-yield Kiplinger & Barron’s Inflation Busting Dividend 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 nine 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