99 September 10%+Yield Dividend Dogs, Show 95 To Buy

Foreword

A reader of August 2019’s version of this high-yield, low priced dividend dog list called it “dangerous advice.” Hence, this information is to be used at your own risk.

I have always advised that high dividends portend high risk. Combine that signal with a low-price offer and you have the stuff of legends and horror stories. Especially in light of Y Charts’ declaration that YCharts allows a dividend yield to persist for 365 days after the most recent reported dividend if a dividend is cut. Therefore, a few line items you see calculated here could be totally inaccurate. (Most of the time Y-Charts withholds forward yield projections when a dividend is cut, however… not always.)

These 99 September selected stocks reported total annual returns ranging from 3.16% to 451.84%. Any candidates this month showing yields greater than 25% were removed because their dividends are the most likely to be cut or curtailed. I did nothing about Chinese-based high yielders but China has announced a preference for home-grown investors and could ban Chinese corporations from international stock market listings in the future.

Another caveat holds for Russian listings. With Vladimir Putin’s war with Europe raging, the price drop in Russian stocks sent yields over 25% and thus off this list since August. Raising the market cap from $100M to $200M, and not listing stocks with negative price returns, kept the list just under 100 this month, and kept ARR and AGNC and other regulars off this listing.

This September list is at 99 and October will generate a new list. Maybe those missing will become positive in price returns and rejoin the pack. The healthiest of sickly dogs will collect here.

Happy hunting, and beware of the numbers put up from the top ten by yield on this list of 99. In short, this is risky business. These are Dogs of the Low, not of the Dow. These dogcatcher metrics are set to snag the most unloved and unpopular curs as a contrarian stock selection strategy.

Meanwhile, all but five of the 99 stocks on this list show dividends from a $1K investment greater than their single share prices. Some investors find this condition to be an invitation to at least look closer, or maybe, buy.

Actionable Conclusions (1-10): Brokers Calculated 18.35% To 394.67% Net Gains For The Top Ten 10%+Yield Stocks As Of September 14, 2023

Six of those ten top-yield 10%+Yield stocks (tinted in the list below) were among the top-ten gainers for the coming year, based on analyst 1-year targets. Thus, this forecast, as graded by Wall St. Brokers, was 60% accurate.

Dividends from $1000 invested in the highest-yielding stocks and the median of analyst-estimated one-year target prices, as reported by YCharts, created the 2022-23 data points for the following estimates. Note: one-year target prices from lone analysts were not applied (n/a). Ten estimated profit-generating trades to September 14, 2023 were:

Braskem SA (BAK) was projected to net $1,001.93 based on dividends plus the median of target estimates from 8 analysts, less broker fees. The Beta number showed this estimate subject to risk/volatility 67% over the market as a whole.

Himax Technologies Inc (HIMX) netted $779.66 based on dividends plus the median of target estimates from 4 brokers, less broker fees. The Beta number showed this estimate subject to risk/volatility 87% over the market as a whole.

MFA Financial Inc (MFA) was projected to net $753.76 based on dividends, plus the median of target estimates from 6 analysts less broker fees. The Beta number showed this estimate subject to risk/volatility 70% over the market as a whole.

Eagle Bulk Shipping Inc (EGLE) was projected to net $747.30, based on dividends plus the median of target estimates from 7 brokers, less broker fees. The Beta number showed this estimate subject to risk/volatility 38% greater than the market as a whole.

United Breweries Co Inc [Compañía Cervecerías Unidas S.A. in SA] (CCU) was projected to net $604.62, based on dividends plus the median of target estimates from 6 brokers, less broker fees. The Beta number showed this estimate subject to risk/volatility 14% under the market as a whole.

Chimera Investment Corp (CIM) was projected to net $317.57 based on dividends plus the median of target estimates from 4 brokers, less broker fees. The Beta number showed this estimate subject to risk/volatility 10% over the market as a whole.

Grupo Aeroportuario del Centro Norte SAB (OMAB) was projected to net $311.80, based on dividends plus the median of target estimates from eight brokers, less broker fees. The Beta number showed this estimate subject to risk/volatility 25% greater than the market as a whole.

SITC International Holdings Co. Ltd. (OTCPK:SITIY) was projected to net $202.50, based on dividends, less broker fees. A Beta number was not available for SITIY.

Loma Negra Compañía Industrial Argentina Sociedad Anónima (LOMA) was projected to net $193.53, based on dividends plus the median of prices estimated by 5 analysts, less broker fees. A Beta number was not available for LOMA.

BP Prudhoe Bay Royalty Trust (BPT) was projected to net $183.50, based on dividends less broker fees. The Beta number showed this estimate subject to risk/volatility 1% opposite the market as a whole.

The average net-gain in dividend and price was estimated to be 50.62% on $10k invested as $1k in each of these ten stocks. This gain estimate was subject to average risk/volatility 4% less 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.”

50/99 Broker Price Target Up/Dn-sides

50/99 10%+Yield Top-Dogs By Yield

Actionable Conclusions (11-20) Top Ten 10%+Yield August Stock Yields Ranged 17.76%-25.19%

Top ten 10%+Yield dogs selected 9/14/22 by yield represented seven of eleven Morningstar sectors.

First place was earned by the lone basic materials stock, Braskem SA [1]. Second place went to the first of two technology members, Himax Technologies Inc. [2]. The other placed seventh, Kingboard Laminates Holdings Ltd. (OTCPK:KGBLY)[7].

Then third place went to the lone financial services member, KBC Group NV (OTCPK:KBCSY) [3], while fourth place was occupied by the consumer defensive representative, United Breweries Co. Inc. [4].

Three Industrials sector stocks in the top ten placed fifth, eighth, and tenth: SITC International Holdings Co. Ltd. [5], Eagle Bulk Shipping Inc [8], and Hapag-Lloyd AG (OTCPK:HPGLY) [10].

Thereafter, a single energy representative placed sixth, BP Prudhoe Bay Royalty Trust (BPT) [6].

Finally, a single consumer cyclical stock nailed down ninth place, Persimmon PLC (OTCPK:PSMMF) [9], to complete the 10%+Yield top ten for September 2022-23.

Actionable Conclusions: (21-30) Ten 10%+Yield Stocks Showed 0% To 77.58% Upsides To September 14, 2023 and (31) No Down-siders Hit Negative Notes

10%+Yield (5)UP/DN SIDES SEP22-23

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 30.08% Advantage For 5 Highest Yield, Lowest Priced, Of Ten 10%+Yield Dogs To September 14, 2023

Ten top 10%+Yield dogs were culled by yield for this September update. Yield (dividend/price) results verified by Yahoo Finance did the ranking.

As noted above, top ten 10%+Yield dogs selected 9/14/22 showing the highest dividend yields represented seven of eleven sectors in the Morningstar scheme.

Actionable Conclusions: Analysts Estimated 5 Lowest-Priced Of Top Ten Highest-Yield 10%+Yield Dogs (31) Delivering 55.37% Vs. (32) 42.57% Net Gains From All Ten By September 14, 2023

$5000 invested as $1k in each of the five lowest-priced stocks in the top ten 10%+Yield dogs collection was predicted by analyst 1-year targets to deliver 30.08% more net gain than $5,000 invested as $.5k in all ten. The third lowest priced, Braskem SA was projected by analysts to deliver the best net gain of 100.17%.

The five lowest-priced top 10%+Yield stocks as of September 14 were: Himex Technologies Inc., United Breweries Co. Inc., Braskem SA, Persimmon PLC, Bp Prudhoe Bay Royalty Trust, with prices ranging from $5.56 to $16.24.

Five higher-priced >10%Yield dogs from September 14 were: Kingboard Laminate Holdings Ltd., SITC International Holdings Co. Ltd., KBC Group NV, Eagle Bulk Shipping Inc., Hapag-Lloyd AG, whose prices ranged from $22.33 to $104.03.

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

Below is the listing (alphabetically by ticker symbol), of all 99 10%+Yield stocks from YCharts as of 9/14/22.

99 10%+Yield Dogs For September

Note: 95 of the 99 stocks on this list show dividends from a $1K investment greater than their single share prices. Some investors find this condition to be an invitation to buy or, at least, look closer.

Stocks listed above were suggested only as possible reference points for your 10%Yield-Priced dividend dog 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.

In addition my YCharts data supplier makes no warrants regarding their forward looking dividend accuracy. Here is their dividend yield statement: “2) We allow a dividend yield to persist for 365 days after the most recent reported dividend if a dividend is cut. Hence, this data should not be used for backtesting purposes. For true historical testing purposes, one would need the date the company announced a cut or increase in the dividend to get the proper expected dividend yield as of a given date.”

“The forward yield won’t catch changes as there is not an automated method for turning those announcements into that kind of data. A specific use case would require additional over-site after the screening had taken place to catch these instances. I wish there was an easier way, and I will submit feedback, but as of yet this has been how we’ve always done things for lack of a better method.”

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 art from dividenddogcatcher.com.

Editor’s Note: This article discusses one or more securities that do not trade on a major U.S. exchange. Please be aware of the risks associated with these stocks.