AMP - V&M Breakouts: Top Growth And Dividend Stocks For July 2022 Midyear Selections

• Releasing two top July stocks from the MDA Growth and Dividend Breakout long-term portfolio and ten top samples from prior portfolios.
• The current January dividend portfolio is down -9.11% in the first half of the year, beating the S&P 500 by +11.47% and the Nasdaq by +20.4% in the same period.
• The July 2022 1-year portfolio is down -16.4% and the July 2020 2-year portfolio is up +39.9% not including additional minimum 2%+ dividends.
• These mega cap dividend selections have consistently outperformed the S&P 500 on average over the past 3 years.
• 30 monthly portfolios have been formed since Jan 2020 and 20 portfolios are continuing to beat the respective S&P 500 yearly averages.

Introduction

The Top Dividend Growth stock model expands on my doctoral research analysis on multiple discriminant analysis ((MDA)) adding new complexities with these top picks. Research shows that the highest frequency of large price breakout moves is found among small cap stocks with low trading volumes, offering no dividends and delivering higher than average risk levels.

The challenge with the Top Dividend & Growth model is to deliver a combination toward optimal total return with characteristics that typically reduce the frequency and magnitude of price breakouts, but deliver more reliable growth factors for higher profitability longer term.

Market Conditions

2022 has delivered the worst half-year start to the stock market since 1970 and the worst start of the year returns for the Nasdaq in history. These terrible market results going back 52 years and longer have pared much of the strong initial gains in the prior portfolios, and the best approach is to follow the Momentum Gauges® as members have to avoid all major downturns .

The long term buy/hold Growth & Dividend mega cap portfolio from January is down -9.11% YTD for 2022 with the 2-year average return greatly reduced to +13.0%.

June marked the start of the Federal Reserve's first quantitative tightening event since 2018. The proposed liquidity reduction could have significant impact on markets as detailed in my recent article: How Markets May React To Fed's QT Program

Selection criteria this month has been adjusted towards higher yield stocks and less volatile growth candidates, as market conditions remain very poor. The Monthly Momentum Gauges continue negative from the November signal. The best return results are achieved by following the Momentum Gauge signals and avoiding the worst downturns.

Readers are free to buy/hold for the one-year measurement period of each portfolio, hold longer, or update your Growth & Dividend portfolios with newer selections.

Each monthly selection portfolio consists of 5 stocks above a minimum $10 billion market cap, $2/share price, 500k average daily volume and a minimum 2% dividend yield. The population of this unique mega cap segment is approximately 330 stocks out of over 7,800 stocks across the US stock exchanges. While these stocks represent less than 5% of available stocks, their market cap exceeds $19 trillion out of the approximately $33 trillion (57.6%) of the US stock exchanges. Efforts are made to optimize total returns on the key MDA price growth factors (fundamental, technical, sentiment) for the best results under these large cap constraints with high priorities for dividend growth and dividend yield.

2 Top Growth & Dividend Stocks For July 2022

• Campbell Soup Company ( CPB )
• Kellogg Company ( K )

Score Overview of the Growth & Dividend Stocks for July

Dividend Calendar

The factors shown above are not necessarily selection variables used in the MDA analysis and dividend algorithms for growth and strong total returns. Dividend yield for all these selections is well above 2% minimum for this portfolio and as high as 7.8% in the full July selections. These are among the highest dividend yielding mega cap stocks with strong growth and may attract strong net inflows if market conditions contribute toward more defensive positions. These additional financial perspectives and reports are included to enhance your investment decisions for total returns. The returns shown in all the annual measurements do not include any of these large dividend yields.

Campbell Soup Company

Campbell Soup Company, together with its subsidiaries, manufactures and markets food and beverage products the United States and internationally. The company operates through Meals & Beverages and Snacks segments. The Meals & Beverages segment engages in the retail and foodservice businesses in the United States and Canada. This segment provides Campbell's condensed and ready-to-serve soups; Swanson broth and stocks; Pacific Foods broth, soups, and non-dairy beverages; Prego pasta sauces; Pace Mexican sauces; Campbell's gravies, pasta, beans, and dinner sauces; Swanson canned poultry; Plum baby food and snacks; V8 juices and beverages; and Campbell's tomato juice.

(Source: Company Resources)

Kellogg Company

Kellogg Company, together with its subsidiaries, manufactures and markets snacks and convenience foods. The company operates through four segments: North America, Europe, Latin America, and Asia Middle East Africa. Its principal products include crackers, crisps, savory snacks, toaster pastries, cereal bars, granola bars and bites, ready-to-eat cereals, frozen waffles, veggie foods, and noodles.

(Source: Company Resources)

Prior Returns From January 2020

These selections are down significantly, but still outperforming the stock market and the major hedge fund averages since inception. Consider also the actively managed ARK Innovation fund down -56.4% YTD and the Barclay Hedge fund index -10.51 YTD.

The current 2-year returns to date on the MDA Growth & Dividend selection model, not including any of the large % dividend total returns from all stocks:

Returns through May:

Returns through June have declined sharply in stock market selling from the prior month above:

The 2-year average returns are +13.0% down significantly YTD but still beating the benchmark indices over the same time period, not including large dividends from each of the selections.

Prior Long Term Gainers To Consider

This section is a brief review of strong prior selections that have delivered on the long term growth forecast YTD. From the start of the year across all the long term Growth & Dividend MDA selections, the following stocks have significantly outperformed on price alone, not including dividends. Many of these stocks are in more than one monthly selection portfolio, as high variable standard criteria often produce a small pool of strong candidates with frequent overlap.

These selections are significantly outperforming major Hedge Funds in 2022 and the hedge fund benchmarks since inception.

The 2021 Year End Report Card for the Growth & Dividend MDA breakout stocks is available here .

*Returns to date on the MDA Growth & Dividend selection model do not include large dividends from each stock:

Conclusion

These stocks continue a live forward-testing of the breakout selection algorithms from my doctoral research applied to large cap, strong dividend growth stocks. None of the returns listed above include the high dividend yields as part of the performance, and would further increase total returns for each stock. These monthly top Growth & Dividend stocks are intended to deliver excellent long-term total return strategies, leveraging key factors in the MDA breakout models used in the small cap weekly breakout selections.

These selections are being tracked on the V&M Dashboard Spreadsheet for members and enhancements will continue to optimize dividend, growth, and higher breakout frequency variables throughout the year. The best return results are achieved by following the Momentum Gauge signals and avoiding the worst downturns.

All the very best to you!!

JD Henning, PhD, MBA, CFE, CAMS

For further details see: