CTRA - 9 Ideal November Fortune Fast Growers Out Of 100

2023-11-05 10:29:27 ET

Summary

• On October 25 2023 an on-line edition of Fortune Magazine revealed 100 Fastest Growing Public Companies. My Dogcatcher quest to sniff-out dividend-buys found 57 dividend-paying fast-growers using YCharts 11/1/23 data.
• The companies featured on the fastest-growing companies list, which ranks companies based on growth in revenue, profits, and stock returns, are worth a combined $4 trillion in market capitalization.
• 57 dividend yielding stocks highlighted those 100 fastest-growers and ranged 0.04% to 15.8% in annual-yield, while the 100 ranged -73.61% to 122.42% in broker-estimated one-year price-target-upsides by YCharts 11/1/23 reckoning.
• Top-ten 2023 F100-FGs boasted net gains from 35.41% to 99.9% per YChart data.
• $5k invested in the lowest-priced five of ten top-yield F100-FGs showed 26.06% more net-gain than from $5k invested in all ten. Little (lower-priced) stocks took their lead of this F100-FG pack at over two and one-half lengths into November.

Foreword

This article is based on Fortune magazine’s 2023 100 Fastest-Growing Companies list (F100-FG)

“The 38th year for Fortune’s annual Fastest-Growing Companies list ranks companies based on growth in revenue, profits, and stock returns; this year’s edition tracks those metrics over the three years through June 2023. The companies featured are worth a combined $4 trillion in market capitalization and, on average, delivered an annual 42% return to shareholders over the past three years. That significantly outperformed the S&P 500 index’s 15% annual return to shareholders over the same period." --Fortune.com

Any collection of stocks is more clearly understood when subjected to yield-based (dog catcher) analysis, this collection of F100-FG for 2023 is perfect for the dogcatcher process. Below are the November 1 data for the 57 dividend stocks populating those F100FG as parsed by YCharts.

The prices of 9 of those 57 fastest-grower dividend selections made the possibility of owning productive dividend shares from this collection a reality for first-time investors.

The 9 Dogcatcher ideal best to buy November F100FG Dividend stocks were:Sociedad Quimica Y Minera De Chile SA ( SQM ); Star Bulk Carriers Corp ( SBLK ); Civitas Resources Inc ( CIVI ); Cal-Maine Foods Inc ( CALM ); Pfizer Inc ( PFE ); Dime Community Bancshares Inc ( DCOM ); Tenaris SA ( TS ); A-Mark Precious Metals Inc ( AMRK ); Coterie Energy Inc ( CTRA ).

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.

Actionable Conclusions (1-10): Analysts Estimated 32.6% To 36.3% Net Gains From Ten F100-FG Dividend Stocks To November, 2024

Four of ten top F100-FG 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 November fast-growers was graded by Wall St. Wizards as 40% accurate.

Estimated dividends from $1000 invested in each of the highest yielding F100-FG stocks, added to the median of aggregate one-year target prices from analysts (as reported by YCharts), generated the following list. (Note that one-year target-prices by lone-analysts were not included.) Thus, ten probable profit-generating trades projected to November, 2024 were:

A-Mark Precious Metals Inc was projected to net $999.19, 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 94% less than the market as a whole.

Sociedad Quimica Y Minera De Chile SA was projected to net $879.62, based on dividends, plus the median of target price estimates from 17 analysts, less broker fees. The Beta number showed this estimate subject to risk/volatility 6% over the market as a whole.

AdvanSix Inc ( ASIX ) was projected to net $739.54 based on dividends, plus the median of target estimates from 3 brokers, less transaction fees. The Beta number showed this estimate subject to risk/volatility 86% greater than the market as a whole.

Freeport McMoRan Inc ( FCX ) was projected to net $695.73, based on dividends, plus the median of target price estimates from 19 analysts, less broker fees. The Beta number showed this estimate subject to risk/volatility 108% greater than the market as a whole.

Nutrient Ltd ( NTR ) was projected to net $410.10, based on the median of estimates from 21 analysts, plus dividends, less broker fees. The Beta number showed this estimate subject to risk/volatility 6% less than the market as a whole.

Star Bulk Carriers Corp was projected to net $404.98 based on the median of target estimates from 6 analysts, plus dividends, less broker fees. The Beta number showed this estimate subject to risk/volatility 3% less than the market as a whole.

Kulicke & Soffa Industries Inc ( KLIC ) was projected to net $385.70, 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 41% greater than the market as a whole.

Pfizer Inc was projected to net $384.34 based on the median of target price estimates from 22 analysts, plus annual dividend, less broker fees. The Beta number showed this estimate subject to risk/volatility 37% less than the market as a whole.

Inter Parfums Inc ( IPAR ) was projected to net $360.04, based on dividends, plus the median of target price estimates from 5 analysts, less broker fees. The Beta number showed this estimate subject to risk/volatility 7% over the market as a whole.

Civitas Resources Inc was projected to net $354.17, based on dividends, plus median target price estimates from 10 analysts, less broker fees. The Beta number showed this estimate subject to risk/volatility 71% greater than the market as a whole.

The average net gain in dividend and price was estimated at 56.13% on $10k invested as $1k in each of these ten stocks. These gain estimates were subject to average risk/volatility 31% 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".

60 F100-FG In November Per Analyst Target Data

60 F100-FG Per November Yields

Actionable Conclusions (11-20): Ten Top F100-FG By Yield For November

Top ten F100-FG by yield for November represented six of eleven Morningstar sectors. First place was held by one of two basic materials sector members, Sociedad Quimica Y Minera De Chile SA. The other materials company placed ninth, Arch Resources Inc ( ARCH ) [9]. Then, one industrials member placed second, Star Bulk Carriers Corp [2].

Third place was claimed by the first of four energy representatives, Civitas Resources Inc [3]. The other three placed fifth, sixth, and tenth, Pioneer Natural Resources Inc ( PXD ) [5], ONEOK Inc ( OKE ) [6], and Chevron Corp ( CVX ) [10].

Fourth place went to the lone consumer defensive representative, Cal-Maine Foods Inc [4]. Down the line, seventh place went to the healthcare representative, Pfizer Inc [7]. Finally, in eighth place was the financial services member, Dime Community Bancshares Inc [8], to complete the top ten F100-FG of 2023 dividend pack for November.

Actionable Conclusions: (21-30) Ten Top F100-FG For November Showed 29.75% to 97.85% Upsides While (31) Two Down-siders Sagged -0.11% & -3.81%

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 26.06% Advantage For 5 Highest Yield, Lowest Priced, of 10 F100-FG Dividend Stocks For November

Ten top F100-FG yield (dividend / price) results provided by YCharts produced the following ranking.

As noted above, top ten Kiplinger, F100-FG stocks for 2023 screened 11/1/23, showing the highest dividend yields, represented six of eleven in the Morningstar sector scheme.

Actionable Conclusions: Analysts Predicted 5 Lowest-Priced Of The Top Ten Highest-Yield F100-FG for 2023 (32) Delivering 40.39% Vs. (33) 32.04% Net Gains by All Ten Come November, 2024

$5000 invested as $1k in each of the five lowest-priced stocks in the top ten F100-FG for 2023 by yield were predicted by analyst 1-year targets to deliver 26.06% more gain than $5,000 invested as $.5k in all ten. The fourth lowest-priced selection, Sociedad Quimica Y Minera De Chile SA, was projected to deliver the best net gain of 87.96%.

The five lowest-priced top-yield F100-FG for 2023 Dividend Dogs as of November 1 were: Star Bulk Carriers Corp; Dime Community Bancshares Inc; Pfizer Inc; Quimica Y Minera De Chile SA; Cal-Maine Foods Inc, with prices ranging from $18.41 to $47.82.

Five higher-priced F100-FG for 2023 Dividend Dogs as of November 1 were: ONEOK Inc; Civitas Resources Inc; Chevron Corp; Arch Resources Inc; Pioneer Natural Resources Corp, whose prices ranged from $64.54 to $237.87.

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 Fortune100-Fastest Growing Stocks for 2023 and focuses on the top 30 by yield for November. Therefore, more than half the original list of 100 dividend paying companies is neglected. To remedy this condition, the following is provided

A Complete List of The Fortune 100 Fastest Growing Stocks for 2023

(Stocks are grouped alphabetically by ticker, in ascending order.)

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 100 F100-FG for 2023 made the possibility of owning productive dividend shares from this collection more viable for first-time investors.

Those nine all live up to the ideal of having their annual dividends from a $1K investment equal or exceed their single share prices. Many investors see this condition as "look closer to maybe buy" opportunity.

How All Ten Top F100-FG For 2023 Stocks Could Become Ideal Fair Priced Dogs

Six of the top ten F100-FG stocks for 2023 are recently priced less than the annual dividends paid out from a $1K investment. The dollar and percentage differences between recent and fair prices are detailed in the top chart. Six ideal fair-priced stocks plus the four at current prices are shown in the middle chart. Finally, the fair pricing of all ten top dogs conforming to that ideal are the subject of the bottom chart.

With renewed downside market pressure to 46.1%, it is possible for all ten highest-yield F100-FG for 2023 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 six of ten already fair priced.

F100-FG 2023 Stocks by Rank

Stocks listed above were suggested only as possible reference points for your 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; Yahoo Finance - Stock Market Live, Quotes, Business & Finance News; analyst mean target price by YCharts. Dog image:Open source dog art from Dividend Dog Catcher

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