Reliable Retiree Stocks For March Serve Seven To Buy Now

Foreword

This article is based on two Kiplinger investing articles aimed at retirees:

20 Dividend Stocks to Fund 20 Years of Retirement, (yielding roughly 4% or higher), updated 5/7/21, by Brian Bollinger, “…should fund at least 20 years of retirement, if not more. They have paid uninterrupted dividends for more than 20 consecutive years, appear to have secure payouts and have the potential to collectively grow… dividends to protect investors’ purchasing power.”

10 Super-Safe Dividend Stocks by Deborah Yao, published 4/30/21, featured “every stock on this list earns the highest DIVCON rating of 5. We’ve further culled the list down to 10 stocks that offer a total dividend and buyback yield of at least 2%, and price-to-earnings (P/E) ratios in the trailing 12 months that are below, or on par, with the broader market.”

Any collection of stocks is more clearly understood when subjected to yield-based (dog catcher) analysis, these Kiplinger reliable dividend stocks for retirees are perfect for the dogcatcher process. Here is the February 24 data for the 30 stocks in the Kiplinger-sourced collection.

The Ides of March 2020 plunge in the stock market took its toll, yet most of these retiree selections bounded back beyond broker targets.

The following seven (as of February 24) continue to live up to the Dogcatcher ideal of delivering annual dividends from a $1K investment in excess of their single share prices: Enterprise Products Partners L.P. (EPD); Enbridge Inc. (ENB); Pembina Pipeline Corp (PBA); Ennis, Inc. (EBF); National Retail Properties, Inc. (NNN); Old Republic International (ORI); Monmouth Real Estate Investment (MNR). Many investors regard this condition as a “look closer to maybe buy” signal.

Actionable Conclusions (1-10): Analysts Estimated 16.75% To 37.79% Net Gains For Ten Top Reliable Retirement Dividend Dogs To March, 2023

Three of ten top Kiplinger reliable retirement stocks by yield were 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 January dogs was graded by Wall St. Wizards was 30% accurate.

Estimated dividends from $1000 invested plus their aggregated one-year analyst median target prices, as reported by YCharts, composed the metrics for the projections below. Note: target prices by lone analysts were not applied. Ten probable profit-generating trades projected to February 24, 2023 were:

Best Buy Co., Inc. (BBY) was projected to net $377.88, based on dividends, plus the median of the target price estimates from twenty-three analysts, less broker fees. The Beta number showed this estimate subject to risk/volatility 51% over the market as a whole.

Enterprise Products Partners L.P. was projected to net $282.73, based on the median of target price estimates from twenty-two analysts, plus annual dividend, less broker fees (if any). The Beta number showed this estimate subject to risk/volatility 27% more than the market as a whole.

National Retail Properties, Inc. was projected to net $217.25, based on the median of target price estimates from twelve analysts, plus annual dividend, less broker fees. The Beta number showed this estimate subject to risk/volatility 11% less than the market as a whole.

Old Republic international Corporation was projected to net $211.04, 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 18% under the market as a whole.

Texas Instruments Incorporated (TXN) was projected to net $190.52, based on the median of target estimates from twenty-six analysts, plus dividends, less broker fees. The Beta number showed this estimate subject to risk/volatility 8% under the market as a whole.

W. P. Carey Inc. (WPC) was projected to net $188.62, based on dividends, plus the median of target price estimates from eight analysts, less broker fees. The Beta number showed this estimate subject to risk/volatility 25% less than the market as a whole.

Quest Diagnostics Incorporated (DGX) was projected to net $179.42, based on dividends plus upside estimates from fifteen analysts, less broker fees. The Beta number showed this estimate subject to risk/volatility 34% less than the market as a whole.

Cboe Global Markets (CBOE) was projected to net $174.64, based on a median of target price estimates from thirteen analysts, plus dividends, less broker fees. The Beta number showed this estimate subject to risk/volatility 34% less than the market as a whole.

Apple Inc. (AAPL) was projected to net $169.67, based on dividends, plus median target price estimates from forty analysts, less broker fees. The Beta number showed this estimate subject to risk/volatility 19% over the market as a whole.

Colgate-Palmolive Company (CL) was projected to net $167.54 based on dividends, plus the median of target estimates from twenty-one brokers, less transaction fees. The Beta number showed this estimate subject to risk/volatility 37% less than the market as a whole.

The average net gain in dividend and price was estimated at 21.59% on $10k invested as $1k in each of these ten stocks. These gain estimates were subject to average risk/volatility 7% under 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. So, (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”.

26 Kiplinger Reliable Retirement Dividend Stocks Show March Target Gains

30 Kiplinger Reliable Retirement Dividend Stocks Anticipate Positive March Yields

Actionable Conclusions (11-20): 10 Top Kiplinger Reliable Retirement Dividend Stocks By Yield For March

Top ten Reliable Retirement Dividend stocks represented five of eleven Morningstar sectors.

Three energy stocks occupied first through third places: Enterprise Products Partners L.P. [1], Enbridge Inc. [2], Pembina Pipeline Corporation [3].

Fourth place went to the first of four real estate sector representatives, W. P. Carey Inc. [4]. The others placed sixth, eighth, and tenth, National Retail Properties, Inc. [6], Universal Health Realty Income Trust (UHT) [8], and Realty Income Corporation (O) [10].

One lone industrials entity placed fifth, Ennis, Inc. [5], and a lone utilities representative, placed seventh, Pinnacle West Capital Corporation (PNW) [7].

Finally, ninth place was claimed by the single communication services representative, Verizon Communications Inc. (VZ) [9], to complete the reliable retirement top ten dividend dogs, by yield, entering March.

Actionable Conclusions: (21-30) Ten Top Reliable Retirement Dividend Dogs Showed 14.28%-35.73% Upsides While (31) Two Poor Down-siders Slumped -3.24% and -5.59% Into March

To quantify top dog rankings, analyst mean 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 16.07% Advantage For The 5 Highest Yield, Lowest Priced Of Top Ten Reliable Retirement Dividend Stocks Come March, 2023

Yield (dividend/price) results provided by YCharts sourced the ranking for these ten top reliable retirement dividend dogs.

As noted above, top ten Kiplinger reliable retirement dogs screened 2/24/22 showed the highest dividend yields and represented five of eleven in the Morningstar sector scheme.

Actionable Conclusions: Analysts Predicted 5 Lowest-Priced Of The Top-Ten Highest-Yield Reliable Retirement Dividend Dogs (32) Delivering 13.34% Vs. (33) 11.5% Net Gains by All Ten Come March, 2023

$5000 invested as $1k in each of the five lowest-priced stocks in the top ten reliable retirement dividend kennel by yield were predicted by analyst 1-year targets to deliver 16.07% more gain than $5,000 invested as $.5k in all ten. The second lowest-priced selection, Enterprise Products Partners L.P., was projected to deliver the best net gain of 28.27%.

The five lowest-priced top-yield Kiplinger most-reliable retiree dividend dogs as of February 24 prices were: Ennis, Inc.; Enterprise Products Partners L.P.; Pembina Pipeline Corporation; Enbridge Inc.; National Retail Properties, Inc., with prices ranging from $18.48 to $41.98.

Five higher-priced Kiplinger top yield reliable retirement dividend dogs as of February 24 were: Verizon Communications Inc.; Universal Health Realty Income Trust; Realty Income Corporation; Pinnacle West Capital Corporation; W. P. Carey Inc., whose prices ranged from $52.59 to $75.89.

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 20% 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

If somehow you missed the suggestion of the seven stocks ripe for picking at the start of this article, here is a reprise of the list at the end:

Seven Ripe for Picking

The 7 above (as of January 26) lived up to the Dogcatcher ideal of having annual dividends from a $1K investment exceed their single share prices. Many investors regard this condition as a “look closer to maybe buy” signal.

Current vs Fair Prices

Since five of the top ten Reliable Retiree shares are now priced less than the annual dividends paid out from a $1K investment, the above charts compare those five plus five 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.

Kiplinger Retirees By Author

Stocks listed above were suggested only as possible reference points for your Retirement stock 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. Open source dog art from dividenddogcatcher.com