Foreword
As supplement to this article, please note that The Motley Fool, which sourced this latest list, and SureDividend both update their lists periodically.
While most of this February collection of 55 Kings is too pricey to justify their skinny dividends, seven of the top ten, by yield, and two more outside of the top ten, live up to the ideal of offering annual dividends (from a $1K investment) exceeding their single share prices, and this month there are three more to watch.
In the current market adjustment, it is now possible for these nine — Altria Group Inc (MO), Leggett & Platt Inc (LEG), Universal Corp (UVV), Canadian Utilities Ltd (OTCPK:CDUAF), Northwest Natural Holding Co (NWN), Fortis Inc (FTS), United Bankshares Inc (UBSI) (seven inside the top ten), and Kenvue Inc (KVUE), and Hormel Foods Corp (HRL) (the two outsiders) — to stay fair-priced with their annual-yield (from $1K invested) meeting or exceeding their single-share prices.
The three to watch are: Black Hills Corp (BKH); 3M Corp (MMM); Federal Realty Investment Trust (FRT). BKH is $1.84 over-priced, MMM is $16.93 overweight, FRT needs to lose $34.67 in price to join the ideal nine.
As we blog into the four-year mark of the 2020 Ides of March dip, the time to snap-up those nine lingering top-yield dividend King dogs is at hand… unless another big bearish drop in price looms ahead. (At which time your strategy would be to add to your position in any of those you then hold.)
Actionable Conclusions (1-10): Analysts Predict 14.3% To 28.7% Top-Ten Kingly Net Gains To February 2025
Five of the ten top Kings by yield were verified as being 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, this yield-based February 12 forecast (as graded by Brokers) was 50% accurate.
Estimated dividend returns from $1000 invested in each of these highest-yielding stocks and their aggregate one-year analyst median target-prices, as reported by YCharts, produced the following 2024-25 data points. (Note: target-prices from lone-analysts were not used.) Ten probable profit-generating trades projected to February, 2025 were:
Archer Daniels Midland Co (ADM) was projected to net $286.97, based on the median of target price estimates from 15 analysts, plus dividends, less broker fees. The Beta number showed this estimate subject to risk/volatility 24% less than the market as a whole.
Northwest Natural Holding Co was projected to net $281.05, based on a median of target estimates from 6 analysts, plus dividends, less broker fees. The Beta number showed this estimate subject to risk/volatility 42% less than the market as a whole.
Middlesex Water Co (MSEX) was projected to net $248.71, 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 23% less than the market as a whole.
Altria Group Inc was projected to net $245.78, based on dividends, plus the median of target price estimates from 14 analysts, less broker fees. The Beta number showed this estimate subject to risk/volatility 34% under the market as a whole.
National Fuel Gas Co (NFG) was projected to net $232.12 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 38% less than the market as a whole.
Kenvue Inc was projected to net $225.29, based on dividends, plus the median of target price estimates from 14 analysts, less broker fees. A Beta number is not available for KVUE.
3M Co netted $200.37 based on a median target price estimate from 17 analysts, plus dividends, less broker fees. The Beta number showed this estimate subject to risk/volatility 2% greater than the market as a whole.
SJW Group (SJW) was projected to net $190.12 based on target price estimates from 5 analysts, plus annual dividend, less broker fees. The Beta number showed this estimate is subject to risk/volatility 40% less than the market as a whole.
Federal Realty Investment Trust was projected to net $159.31, based on the median of target price estimates from 17 analysts, plus the estimated annual dividend, less broker fees. The Beta number showed this estimate subject to risk/volatility 23% greater than the market as a whole.
Black Hills Corp was projected to net $142.95, based on the median of target price estimates from 6 analysts, plus dividends, less broker fees. The Beta number showed this estimate subject to risk/volatility 35% under the market as a whole.
The average net gain in dividend and price was estimated to be 22.13% on $10k invested as $1k in each of these ten stocks. The average Beta ranking showed these estimates subject to risk/volatility 31% under 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,” even if they are “Kings.”
Top 50 Dividend Kings By Broker Targets
This scale of broker-estimated upside (or downside) for stock prices provides a measure of market popularity. Note: no broker coverage or single broker coverage produced a zero score on the above scale. These broker estimates can be seen as the emotional component (as opposed to the strictly monetary and objective dividend/price yield-driven report below). As noted above, these scores may also be regarded as contrarian.
Top 55 Dividend Kings By Yield
Actionable Conclusions (11-20): Ten Top Stocks By Yield Are The February Dogs Of The Dividend Kings
Top ten King Dogs selected 2/12/24 by yield represented six of eleven Morningstar sectors. In first place was Altria Group Inc. [1], the tops of two consumer defensive representatives in the top ten. The other placed fourth, Universal Corp [4]. Then, one consumer cyclical representative took second place, Leggett & Platt Inc [2].
In third place, was the lone industrials sector representative 3M Co [3].
Fifth pace belonged to first of four utilities, Canadian Utilities Ltd [5]. Thereafter, in sixth, seventh, and eighth places, were Northwest Natural Holding Co [6], Black Hills Corp [7], and Fortis Inc [8].
Finally, ninth place was claimed by the lone real estate representative, Federal Realty Investment Trust [9], and tenth place went to the lone financial services sector member, United Bankshares Inc [10], to complete these February top-ten Kings, by yield.
Actionable Conclusions: (21-30) Top Ten Kings Showed 10.61% To 33.61% Upsides Into February 2tect024; (31) No Downsiders Were Detected
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 16.67% Disadvantage For 5 Highest Yield, Lowest Priced, of Top-Ten Dividend Kings By February, 2025
Ten top Kings were culled by yield for their monthly update. Yield (dividend/price) results verified by YCharts did the ranking.
As noted above, top ten Kings selected 2/12/24 showing the highest dividend yields represented six of eleven in the Morningstar sector scheme.
Actionable Conclusions: Analysts Estimated The 5 Lowest-Priced Of Ten Highest-Yield Dividend Kings (32) Delivering 11.42% Vs. (33) 13.7% Net Gains by All Ten by February, 2025
$5000 invested as $1k in each of the five lowest-priced stocks in the top ten Dividend Kings kennel by yield were predicted by analyst 1-year targets to deliver 16.67% LESS gain than $5,000 invested as $.5k in all ten. The fourth lowest-priced top-yield King stock, Northwest Natural Holding Co, was projected to deliver the best net gain of 28.1%.
The five lowest-priced top-yield Dividend Kings as of February 12 were: Leggett & Platt Inc; Canadian Utilities Ltd; United Bankshares, Inc; Northwest Natural Holding Co; Fortis Inc, with prices ranging from $20.89 to $39.45
Five higher-priced top-yield Dividend Kings by the February 12 accounting were: Altria Group Inc; Universal Corp; Black Hills Corp; 3M Co, and Federal Realty Investment Trust, whose prices ranged from $40.55 to $100.71.
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, however, 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 nine stocks ripe for picking at the start of the article, here is a repeat of the list at the end:
The following 9 (as of 2/12/24) realized the ideal of offering annual dividends from a $1K investment exceeding their single share prices: seven of the top-ten, by yield, plus two out on those top ten, live up to the ideal of offering annual dividends (from a $1K investment) exceeding their single share prices, and there are three more to watch.
The three to watch are: Black Hills Corp; 3M Corp; Federal Realty Investment Trust. BKH is $1.84 over-priced, MMM is $16.93 overweight, FRT needs to lose $34.67 in price to join the ideal nine.
As we blog into the four-year mark of the 2020 Ides of March dip, the time to snap up those nine lingering top-yield dividend King dogs is at hand… unless another big bearish drop in price looms ahead. (At which time your strategy would be to add to your position in any of those you then hold.)
Price Drops or Dividend Increases Could Get All Ten Top Dividend Kings Back to “Fair Price” Rates For Investors
Since six of the top ten Dividend King shares are now priced less than the annual dividends paid out from a $1K investment, the top chart shows the dollar and percentage differences between recent and fair prices. Note that three others are within $1.84 to $34.67 of being there. The middle chart compares the six ideals with three at recent prices. Fair pricing (when all ten top dogs conform to the ideal) is displayed in the bottom chart.
February Dividend Kings by Years Increasing Dividends
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 Dividend Kings dog stock purchase or sale research process. These were not recommendations.
Editor’s Note: This article discusses one or more securities that do not trade on a major U.S. exchange. Please be aware of the risks associated with these stocks.
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