NWG - 50 Large-Cap High-Yield Stocks For November

2023-10-31 17:54:26 ET

Summary

• We recently published this list of 50 large-cap high-dividend stocks as of 10/27/23 per data from YCharts.
• The list targeted investors who “don’t want to simply focus on a high dividend yield only to discover that the stock price has plunged or that the corporation went belly-up.”.
• Investors reduce volatility/risk by limiting high-dividend search to large-well-established companies.
• Ten top November YCharted large-cap high-yield dividends ranged 9.09% to 27.7% from WBA; WES; MPLX; ET; BTI; MO; ARCC; VOD; PBR; EC.
• $5k invested October 27 in the top-five high-yield, lowest-priced, large-cap stocks showed 0.28% LESS net gain than from $5k invested all top ten. Big (higher-priced) equities led these top-ten November high-yield large-cap dividend dogs by a whisker.

Foreword

This article is based on an October 27, 2023, list of high-yield large-cap stocks published by DogsOfTheDow.com entitled,

Highest Dividend Paying Large-Cap Stocks .

Yields for those top big dog 50 were all greater than 5.60% to close October. In late May the minimum yield was at 4.49%; June bottomed out at 5.9%; in late August the bottom yield was 5.30%; September was no lower than 5.8%! The list changes daily at its source.

“The advantage of focusing on large-cap stocks is that these companies tend to be less volatile and also tend to have more resources (e.g. strong management, access to credit, etc.) to maintain their dividend payments over the long-term.” —Dogs of the Dow.

Any collection of stocks is more clearly understood when subjected to this yield-based (dog catcher) analysis, these high-dividend large -cap stocks are perfect for the dogcatcher process. Below is October 27 data for 50 dividend paying stocks including 46 living-up to the dogcatcher "ideal" in this one-source collection.

The Ides of March 2020 plunge in the stock market took its toll on stocks over three and one half years ago. However, the sudden recovery in prices after the plunge by these fifty dividend stocks made the possibility of owning productive dividend shares from this collection more remote for first-time investors.

November, 2023 shows a glimmer of light from forty-six large-cap and high-yield stocks emerging as dogcatcher ideal candidates. They are:

Actionable Conclusions (1-10): Brokers Estimated Top-Ten November High-Dividend Large-Cap Stocks Might Net 32.25% to 66.49% Gains By 2024

Five of the top-yield high-dividend large-cap Stocks (tinted in the chart below) were also the top gainers for the coming year based on analyst 1-year targets. Thus, the top yield dog strategy for this group, as graded by analyst estimates for this month, proved 50% accurate.

Estimated dividend-returns from $1000 invested in each of the highest-yielding stocks and their aggregate one-year analyst median-target prices, as reported by YCharts, created the 2023-24 data points. (However, one year target-prices by lone analysts were not counted.) The resulting ten probable best profit-generating highest-dividend large-cap stocks projected to November, 2024, by that reckoning, were:

NatWest Group plc ( NWG ) netted $684.93 based on the median of target prices estimated by 3 analysts, plus estimated dividends, less broker fees. The Beta number showed this estimate subject to risk/volatility 21% greater than the market as a whole.

British American Tobacco p.l.c. ( BTI ) netted $629.68 based on the median of target estimates from 2 analysts, less broker fees. The Beta number showed this estimate subject to risk/volatility 43% less than the market as a whole.

Vodafone Group PLC ( VOD ) netted $616.19 based on estimates from 4 analysts, plus dividends, less broker fees. The Beta number showed this estimate subject to risk/volatility 79% less than the market as a whole.

Citizens Financial Group, Inc. ( CFG ) netted $462.71 based on dividends plus a median target price estimate from 16 analysts, less broker fees. The Beta number showed this estimate subject to risk/volatility 34% greater than the market as a whole.

Telefonica, S.A. ( TEF ) netted $409.73 based on the median of target estimates from 3 analysts, less broker fees. The Beta number showed this estimate subject to risk/volatility 59% over the market as a whole.

Energy Transfer LP ( ET ) netted $404.90 based on the median of target estimates from 18 analysts, less broker fees. The Beta number showed this estimate subject to risk/volatility 34% less than the market as a whole.

Walgreens Boots Alliance ( WBA ) netted $377.63 based on the median of target estimates from 13 analysts, less broker fees. The Beta number showed this estimate subject to risk/volatility 28% less than the market as a whole.

Altria Group, Inc. ( MO ) netted $333.97 based on the median of target prices estimated by 17 analysts, plus estimated dividends, less broker fees. The Beta number showed this estimate subject to risk/volatility 41% less than the market as a whole.

Bank of Nova Scotia ( BNS ) netted $327.10 based on the median of target estimates from 3 analysts, less broker fees. The Beta number showed this estimate subject to risk/volatility 2% greater than the market as a whole.

BCE Inc. ( BCE ) netted $322.52 based on the median of target price estimates from 4 analysts plus dividends less broker fees. The Beta number showed this estimate subject to risk/volatility 38% less than the market as a whole.

The average net-gain in dividend and price was 45.69% on $10k invested as $1k in each of these ten high-dividend large-cap stocks. This gain estimate was subject to average risk/volatility 9% less than the market as a whole.

The Dividend Dogs Rule

The "dog" moniker was earned by stocks 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 specifically, these are, in fact, best called, "underdogs."

Top 50 High-Dividend Large-Cap November Stock Picks By Broker Targets

This list of broker-estimated upside (or downside) for stock prices provides a scale of market popularity. Note: no broker coverage or one broker coverage produced a zero score on the above scale. This scale can be taken as an emotional component as opposed to the strictly monetary and objective dividend/price yield-driven report below. As noted above, these scores may also be taken as contrarian.

Top 50 High-Dividend Large-Cap November Stock Picks By Yield

Actionable Conclusions (11-20): Ten Top Stocks By Yield Are The November Dogs of High-Dividend Large-Cap Collection

Top ten High-Dividend Large-Cap Stocks selected 10/27/23 by yield represented five of eleven Morningstar sectors.

First and second places were secured by the first two of five energy outfits, Ecopetrol S.A. ( EC )[1] and Petroleo Brasleiro S.A.- Petrobras ( PBR ) [2];. The others placed seventh, eighth, and ninth: Energy Transfer LP [7]; MPLX LP ( MPLX ) [8]; Western Midstream Partners ( WES ) [9].

Third place went to the lone communication services member, Vodafone Group PLC [3].

Fourth place was captured by the first of two financial services representatives in the top ten, Banco de Chile ( BCH ) [4], and sixth place went to Ares Capital Corp ( ARCC ) [6].

Then two consumer defensive sector members placed fifth and sixth, Altria Group [5] and British American Tobacco PLC [6].

Finally, a lone healthcare sector representative placed tenth, Walgreens Boots Alliance ((WBA)) [10], to complete the top ten Dogs of the high-dividend large-cap collection for November.

Actionable Conclusions: (21-30) Ten High-Dividend Large-Cap Stocks Showed 25.51% to 60.63% Upsides To November, 2024, With (31) One -8.87%% Loser

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 26.63% Advantage For 5 Highest Yield, Lowest Priced of Top-Ten High-Dividend Large-Cap Stocks To November, 2023

Ten top high-dividend large-cap stocks were culled by yield for this monthly update. Yield (dividend/price) results verified by YCharts did the ranking.

As noted above, top-ten high-dividend large-cap stocks selected 10/27/23, showing the highest dividend yields, represented five of eleven sectors in the Morningstar scheme.

Actionable Conclusions: Analysts Estimated The 5 Lowest-Priced Of Ten High-Yield Large-Cap Stocks (33) Delivering 35.53% Vs. (34) 35.63% Net Gains by All Ten by November 2024

$5000 invested as $1k in each of the five lowest-priced stocks in the top ten high-dividend large-cap stocks by yield were predicted by analyst 1-year targets to deliver 0.28% LESS gain than $5,000 invested as $.5k in all ten. The eighth lowest-priced high-dividend large-cap top-yield stock, British American Tobacco p.l.c. ((BTI)), was projected to deliver the best net gain of 62.97%.

The five lowest-priced top-yield high-dividend large cap stocks for October 27 were: Vodafone Group PLC; Ecopetrol SA; Energy Transfer LP; Petrol Brasileiro SA Petrobras; Ares Capital Corp, with prices ranging from $9.21 to $18.67

Five higher-priced top-yield high-dividend large cap stocks for October 27 were: Walgreens Boots Alliance; Western Midstream Partners LP; British American Tobacco PLC; MPLX LP; Altria Group Inc, whose prices ranged from $21.13 to $39.30.

This 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.

Afterword

If somehow you missed the suggestion of the forty-four stocks ripe for picking at the start of the article, here is a repeat of the list at the end:

In the current market advance, dividends from $1K invested in the forty-five stocks listed above met or exceeded their single share prices as of 10/27/23.

As we are over three and one half years past the 2020 Ides of March dip, the time to snap up some those forty-six top yield high-dividend large-cap stocks is now... unless another big bearish drop in price looms ahead. (At which time your strategy would be to add to your holdings.)

To learn which of these ideally-priced opportunities are "safer" to buy (namely which have ready cash to pay their dividends). Use the last bullet in the Summary above to navigate to my dividend dogcatcher follow-up article after November 7 under the SA Investing Groups tab.

Recent vs Break-Even Top Ten High-Dividend Large-Cap Stock Prices

Since all ten of the top-ten high- dividend large-cap stocks are priced less than the annual dividends paid out from a $1K investment, the following top chart shows the dollar and percentage shift required to create break-even pricing for all ten. Starting with the dollar and percent variants to all ten top dogs conforming to (but not exceeding) the dogcatcher ideal in the top chart, the recent prices are documented in the middle chart, and the break-even prices are revealed in the bottom chart.

The top chart is an indicator of how high the ideal stocks must arise to become equally-priced. Which means barely conforming the standard of dividends from $1K invested exceeding the current single share price.

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 2023 top-yield high-dividend large cap stock purchase or sale research process. These were not recommendations.

For further details see: