CGBD - 48 Easy Pickin' Divvy Nifty 51 Stocks To Buy Now

2023-05-05 19:01:15 ET

Summary

• On a whim, I queried YCharts for U.S. dividend stocks yielding greater than 5% annually and only pegged “attractive” in their Y-ratings (ranging from “not-rated” to “avoid,” “neutral”, or “attractive”.).
• My query produced this list of May Divvy Nifty 51 stocks; of which, 48 measure up to the dogcatcher ideal: dividend payouts, from $1k invested, greater than their single-share prices.
• How’re they doin’ now? The top-ten of 48 top-dividend-stocks for May ranged 11.17% to 18.25% in annual-yield and ranged 38.83% to 94.16% in one-year price-target-upsides per brokers as-of 5/3/23.
• Top-ten May Divvy Nifty 51 stocks boasted net gains from 19.43% to 75.68% as of 5/3/23 YCharts data.
• $5k invested in the lowest-priced five of ten top-yield May Divvy Nifty 51 dogs showed 7.56% more net-gain than from $5k invested in all ten. Little (lower-priced) stocks took a three-quarter length lead on this May divvy nifty 51 pack.

Foreword

This article is based on YCharts Y-Ratings. The Y-Rating is a summary score that takes into account 3 key indicators: Value Score, Fundamental Score, and Valuation from Historical Multiples

In a glance, it gives a sense of both the value and the current strength of a stock.

The Y-Rating

Importance: High

Historical Predictive Power: Moderate

How it relates to returns: See individual components - Value Score, Fundamental Score, and Valuation from Historical Multiples.

What it is: A single summary score that takes into account 3 key indicators: Value Score, Fundamental Score, and Valuation from Historical Multiples.

How to use it: In a glance, it will give you a sense of the safety and return possibility of the stock.

Watch out for: It will often miss stocks with a huge potential for gains because big gains are correlated with high risk. Also, it sometimes misses the decline of industries which were profitable for long periods of time.

Detailed Calculation: Once the three scores of Value, Fundamentals, and the Historical Multiples are known, YCharts calculates a final score.

To receive an overall “Attractive” rating, a stock must:

• Receive a Value Score of 9 or 10
• Receive a Fundamental Score of 7 or higher
• Have a Historical Value greater than its current price.

To receive an overall “Avoid” rating, a stock only needs to have “Weak” fundamentals - a Fundamental Score of 4 or lower.

YCharts rates all other companies “Neutral,” since based on their testing there is no strong quantitatively-backed reason to believe they will underperform or outperform the market significantly as part of a portfolio.

Combine the top rating of “attractive” with annual dividend yields over 5% and your get this list of May Divvy Nifty 51 stocks of which 48 measure up to delivering dividend payouts for $1k invested greater than the single share price of the stock.

The May Divvy Nifty 51

(Alphabetically by Ticker Symbol)

Any collection of stocks is more clearly understood when subjected to yield-based (dog catcher) analysis, this collection of May Divvy Nifty 51 stocks is perfect for the dogcatcher process. Below are the May 3, 2023 data for 51 dividend stocks plus parsed by YCharts.

The prices of 48 of these May 51 stocks (listed by yield) made the possibility of owning productive dividend shares from this collection more viable for first-time investors.

All forty eight 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 11.29% To 53.00% Net Gains For Top Ten May Divvy Nifty 51 Stocks To May 2024

Four of ten top divvy nifty 51 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 dogs, as graded by Wall St. Wizards, was 40% accurate.

Estimated dividends from $1000 invested in each of the highest-yielding nifty 51 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 May, 2024 were:

Northrim BanCorp Inc ( NRIM ) was projected to net $756.76, based on dividends, plus the median of target price estimates from 2 analysts, less broker fees. The Beta number showed this estimate subject to risk/volatility 35% under the market as a whole.

Evolution Petroleum Corp ( EPM ) was projected to net $701.12 based on the median of target price estimates from 2 analysts, plus annual dividend, less broker fees. The Beta number showed this estimate subject to risk/volatility 4% less than the market as a whole.

Heritage Commerce Corp ( HTBK ) was projected to net $562.65, based on dividends, plus the median of target price estimates from 6 analysts, less broker fees. The Beta number showed this estimate subject to risk/volatility 7% less than the market as a whole.

Peyto Exploration and Development ( PEYUF ) was projected to net $490.46, based on the median of target estimates from 2 analysts, plus dividends, less broker fees. The Beta number showed this estimate subject to risk/volatility 98% greater than the market as a whole.

Hanmi Financial Corp ( HAFC ) was projected to net $459.80, based on dividends, plus the median of target price estimates from 5 analysts, less broker fees. less broker fees. The Beta number showed this estimate subject to risk/volatility 6% less than the market as a whole.

Viper Energy Partners LP ( VNOM ) was projected to net $427.13 based on the median of target price estimates from 5 analysts, plus annual dividend, less broker fees. The Beta number showed this estimate subject to risk/volatility 53% less than the market as a whole.

Coterra Energy Inc ( CTRA ) was projected to net $324.08, based on the median of estimates from 26 analysts, plus dividends, less broker fees. The Beta number showed this estimate subject to risk/volatility 75% less than the market as a whole.

Pioneer Natural Resources Co ( PXD ) was projected to net $305.80, based on dividends, plus the median of target price estimates from 29 analysts, less broker fees. The Beta number showed this estimate subject to risk/volatility 42% greater than the market as a whole.

Black Stone Minerals LP ( BSM ) was projected to net $294.87, based on dividends, plus the median of target price estimates from 4 analysts, less broker fees. The Beta number showed this estimate subject to risk/volatility 4% over the market as a whole.

Banco Santander Mexico SA ( BSMX ) was projected to net $194.29, based on dividends, plus the median of target price estimates from 2 analysts, less broker fees. The Beta number showed this estimate subject to risk/volatility 7% over the market as a whole.

The average net gain in dividend and price was estimated at 45.17% on $10k invested as $1k in each of these ten stocks. These gain estimates were subject to average risk/volatility 2% 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."

51 May Divvy Nifty 50 Stocks Per Analyst Targets

51 May Divi Nifty 50 Stocks Per Yield Data

Actionable Conclusions (11-20): Ten Top May Divvy Nifty 50 By Yield

Top ten May Divvy Nifty 50 stocks by yield represented just three of eleven Morningstar sectors. The first place was held by one of seven energy representatives in the top ten, PT Bukit Adam Tbk [1].

The other six energy members placed third, fifth, sixth, and eighth to tenth: Dorchester Minerals LP ( DMLP ) [3]; PT Adaro Energy Indonesia Tbk ( ADOOY )[5]; Black Stone Minerals[6]; Sabine Royalty Trust ( SBR ) [8]; Peyto Exploration & Development Corp [9]; Pioneer Natural Resources Co [10].

Then, second place went to the lone industrial member, BW LPG Ltd ( BWLLF ) [2].

Finally, two financial services representatives placed fourth and seventh, Carlyle Secured Lending Inc ( CGBD ) [4], and Banco Santander Mexico SA [7] to complete the top ten May Divvy Nifty 51 pack.

Actionable Conclusions: (21-30) Ten Top May Divvy Nifty 51 Stocks Showed 18.20%-70.10% Upsides While (31) Three Downsiders Fell -0.18% To -30.81 Per Analyst Estimates to 2024

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, the median of analysts target price estimates, became another tool to dig out bargains.

Analysts Forecast A 7.56% Advantage For 5 Highest Yield, Lowest Priced, of 10 May Divvy Nifty 51 Stocks To May 3, 2024

Ten-top May Divvy Nifty 51 stocks were culled by yield for this update. Yield (dividend / price) results provided by YCharts did the ranking.

As noted above, Ten-top May Divvy Nifty 50 stocks screened 5/3/23, showing the highest dividend yields, represented three of eleven in the Morningstar sector scheme.

Actionable Conclusions: Analysts Predicted 5 Lowest-Priced Of The Top-Ten Highest-Yield May Nifty 51 2023 Dividend Stocks (32) Delivering 24.65% Vs. (33) 22.92% Net Gains by All Ten Come May, 2024

$5000 invested as $1k in each of the five lowest-priced stocks in the top ten May Divvy Nifty 51 kennel by yield were predicted by analyst 1-year targets to deliver 7.56% more gain than $5,000 invested as $.5k in all ten. The fourth lowest-priced selection, Peyto Exploration & Development Corp showed the best analyst-estimated net gain of 49.05%.

The five lowest-priced top-yield Mighty Divvy Nifty 51 Dogs as of May 3 were: Banco Santander Mexico SA; PT Bukit Asam Tbk ; BW LPG Ltd; Peyto Exploration Development Corp; PT Adaro Energy Indonesia Tbk, with prices ranging from $5.33 to $10.47.

Five higher-priced May Divvy Nifty 51 dogs as of May 3 were: China Carlyle Secured Lending Inc; Black Stone Minerals LP; Dorchester Minerals LP; Sabine Royalty Trust; Pioneer Natural Resources Co, whose prices ranged from $13.65 to $207.79.

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 15% to 85% 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 51 Mighty Divvy Nifty 50 Stocks and with all but three paying dogcatcher-ideal dividends. The article focuses on the top 30. Thus, nearly half the original list of companies is neglected. Therefore, below is the complete list of 50 stocks grouped alphabetically by ticker symbol.

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 48 of these May Divvy Nifty 51 (listed by yield) made the possibility of owning productive dividend shares from this collection more viable for first-time investors.

48 May Divvy Nifty 51 Ideal Stocks by Yield

All 48 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.

See How Far Nine of Ten Top May Divvy Nifty 50 Stocks Must Jump To Cease Being Fair Priced Dogs

Since all but one top ten New Divvy Nifty 50 shares are now priced less than the annual dividends paid out from a $1K investment, the dollar and percentage difference between the recent and break-even pricing are shown in the top chart above. Recent prices are detailed in the middle chart; with the break-even pricing of all ten top dogs showing in the bottom chart.

It would take upside market pressure to 436%, for all ten highest-yield May Divvy Nifty 50 stocks, to become break-even with their annual yield (from $1K invested) no longer meeting or exceeding their single share prices. These dogs have plenty of room to run.

Stocks listed above were suggested only as possible reference points for your purchase or sale research process. These were not recommendations.

For further details see: