BWLLF - Did You Go Away In May? Here's A Nifty 50 Divvy Dog Cure

2023-06-04 05:16:37 ET

Summary

• Months ago, I first queried YCharts for U.S. dividend stocks yielding greater than 5% annually and solely pegged “attractive” in Y-ratings (ranging from “not-rated” to “avoid”, “neutral”, or “attractive”).
• My recent query revealed June's divvy nifty 53 stocks; of which, 50 measure up to the dogcatcher-ideal of promising dividend payouts, from $1k invested, greater-than their single-share prices.
• How’re they doin’ now? The top ten ranged 12.08% to 43.78% in annual yield and ranged 37.59% to 53.11% in one-year price-target-upsides per brokers as of 6/1/23.
• Top-ten June divvy nifty 50 stocks boasted net gains from 27.9% to 59.01% as of 6/1/23 YCharts data.
• $5k invested in the lowest-priced five of ten top-yield June divvy nifty 50 dogs showed 15.3% more net gain than from $5k invested in all ten. Little (lower-priced) stocks took a one and one-half length lead on this June divvy nifty 50 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 our 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 you get this list of June divvy nifty 53 stocks of which 50 measure up to delivering dividend payouts for $1k invested greater than the single share price of the stock.

The June Divvy Nifty 53

(Alphabetically by Ticker Symbol)

Any collection of stocks is more clearly understood when subjected to yield-based (dog catcher) analysis; this collection of June divvy nifty 53 stocks is perfect for the dogcatcher process. Below are the June 1, 2023 data for 53 dividend stocks parsed by YCharts.

The prices of 50 of these June 53 stocks (listed by yield) made the possibility of owning productive dividend shares from this collection more viable for first-time investors.

All fifty 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 June Divvy Nifty 50

Five of ten top divvy nifty 50 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 June dogs, as graded by Wall St. Wizards, was 50% accurate.

Estimated dividends from $1000 invested in each of the highest-yielding nifty 50 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 June, 2024 were:

Peyto Exploration and Development ( PEYUF ) was projected to net $590.10, 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.

DHT Holdings Inc ( DHT ) was projected to net $584.50, 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 20% opposite the market as a whole.

Viper Energy Partners LP ( VNOM ) was projected to net $492.47 based on the median of target price estimates from 11 analysts, plus annual dividend, less broker fees. The Beta number showed this estimate subject to risk/volatility 92% greater than the market as a whole.

BW LPG Ltd ( BWLLF ) was projected to net $427.80 based on annual dividend, less broker fees. The Beta number showed this estimate subject to risk/volatility 60% greater than the market as a whole.

Coterra Energy Inc ( CTRA ) was projected to net $404.87, based on the median of estimates from 25 analysts, plus dividends, less broker fees. The Beta number showed this estimate subject to risk/volatility 74% less than the market as a whole.

Western Midstream Partners ( WES ) was projected to net $391.50, based on dividends, plus the median of target price estimates from 13 analysts, less broker fees. The Beta number showed this estimate subject to risk/volatility 177% greater than the market as a whole.

Pioneer Natural Resources Co ( PXD ) was projected to net $351.02, based on dividends, plus the median of target price estimates from 28 analysts, less broker fees. The Beta number showed this estimate subject to risk/volatility 43% greater than the market as a whole.

Civitas Resources Inc ( CIVI ) was projected to net $328.92, based on dividends, plus the median of target price estimates from 7 analysts, less broker fees. less broker fees.The Beta number showed this estimate subject to risk/volatility 73% less than the market as a whole.

PT United Tractors Tbk ( PUTKY ) was projected to net $305.80, based on dividends, less broker fees. The Beta number showed this estimate subject to risk/volatility 28% under the market as a whole.

Black Stone Minerals, L.P. ( BSM ) was projected to net $279.14, 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.

The average net gain in dividend and price was estimated at 41.58% on $10k invested as $1k in each of these ten stocks. These gain estimates were subject to average risk/volatility 32% 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".

50 June Divvy Nifty 50 Stocks Per Analyst Targets

50 June Divvy Nifty 50 Stocks By Yield

Actionable Conclusions (11-20): Ten Top June 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 the lone industrial member, BW LPG Ltd [1]. Then, second place went to a lone basic materials representative, PT United Tractors Tbk [2]

Finally, the remaining eight slots (from 3 to 10) were filled by energy sector representatives, Avance Gas Holding Ltd ( AVACF ) [3]; PT Adaro Energy Indonesia Tbk ( ADOOY ) [4]; PT Bukit Asam TBK ( TBNGY ) [5]; Dorchester Minerals LP ( DMLP ) [6]; Western Midstream Partners LP [7]; Sabine Royalty Trust ( SBR ) [8]; Black Stone Minerals [9]; Peyto Exploration & Development Corp [10], to complete the top ten of the June Divvy Nifty 50 pack.

Actionable Conclusions: (21-30) Ten Top June Divvy Nifty 50 Stocks Showed 7.58%-48.01% Upsides While (31) No Downsiders Fell 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 15.3% Advantage For 5 Highest Yield, Lowest Priced, of 10 Divvy Nifty 50 Stocks To June 1, 2024

Ten-top June divvy nifty 50 stocks were culled by yield for this update. Yield (dividend / price) results provided by YCharts did the ranking.

As noted above, ten-top June divvy nifty 50 stocks screened 6/1/23, 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 June Nifty 50 Dividend Stocks (32) Delivering 33.09% Vs. (33) 28.70% Net Gains by All Ten Come 2024

$5000 invested as $1k in each of the five lowest-priced stocks in the top ten June divvy nifty 50 kennel by yield were predicted by analyst 1-year targets to deliver 15.3% more gain than $5,000 invested as $.5k in all ten. The third lowest-priced selection, Peyto Exploration & Development Corp., showed the best analyst-estimated net gain of 59.01%.

The five lowest-priced top-yield divvy nifty 50 Dogs as of June 1 were: PT Bukit Asam Tbk; PT Adaro Energy Indonesia Tbk; Peyto Exploration & Development Corp; Avance Gas holding Ltd; BW LPG Ltd, with prices ranging from $5.64 to $8.68.

Five higher-priced divvy nifty 50 dogs as of June 1 were: Black Stone Minerals LP; Western Midstream Partners LP; Dorchester Minerals LP; PT United Tractors Tbk; Sabine Royalty Trust, whose prices ranged from $15.67 to $69.53.

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

June Divvy Nifty 50 Ideal Stocks by Yield

All 50 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 Ten Top June Divvy Nifty 50 Stocks Must Jump To Cease Being Fair Priced Dogs

Since all top ten 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 -610% for all ten highest-yield June 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.

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. Dog image: Open source dog art from dividenddogcatcher.com.

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