Top Dividend Monthly Pays Give 37.81% Edge To 5 Highest-Yield, Lowest-Priced Dogs Of April 17
Apr. 21, 2015 12:01 AM
- $5k invested in the lowest-priced five of ten top yield monthly-paid dividend stocks showed 37.81% more net gain than from $5k put in all ten.
- Annual dividends divided by closing stock prices as of April 17 determined yields. Analyst 1-year net targets were used to calculate gains one year out.
- Five lowest-priced highest-yield stocks of the MoPay SML Team are: ARR, FSC, PSEC, ARP, and FSIC.
- The five higher-priced stocks completing the ten are: LNCO, SCM, LINE, VNR, and AGNC.
- Consider these stocks as reference points for your Mid-April MoPay SML stock investment research.
Top Ten For the Money
This article refines and distinguishes an earlier report that revealed monthly-paying (MoPay ) small, medium, and large (SML) cap bargain stocks to buy and hold for one year. S mall cap firms were valued at $200M(illion) to $2B(illion); M id cap firms were worth $2B to $10B; L arge caps were valued above $10B.
See the Dow 30 article for an explanation of the term "dogs" for stocks as reported, based on Michael B. O'Higgins ' book "Beating The Dow " (HarperCollins, 1991), now named Dogs of the Dow. O'Higgins' system works to find bargain dogs in any collection of dividend-paying stocks. Utilizing analyst price upside estimates expanded the stock universe to include popular growth equities, as desired.
Dog Metrics Extracted Bargains
Ten dividend-paying stocks as of market closing April 17 were culled from the 46 equities that constitute the MoPay SML kennel. Yield (dividend / price) results verified by Yahoo Finance did the ranking.
Ten monthly pay SML Cap dividend equities showing top yields included four basic materials and six financial firms covering just two of a possible nine Yahoo market sectors.
The top dog came from the financials sector: ARMOUR Residential REIT Inc. (NYSE:ARR ) . Five remaining financials took the third through fifth, seventh, and tenth positions: American Capital Agency (NASDAQ:AGNC ) ; Prospect Capital Corporation (NASDAQ:PSEC ) ; Stellus Capital Investment Corporation (NYSE:SCM ) ; Fifth Street Finance (NASDAQ:FSC ) ; and FS Investment Corporation (NYSE:FSIC ) , respectively.
In second place, Atlas Resource Partners L.P. (NYSE:ARP )  led the basic materials representatives. The remaining three basic materials firms placed sixth, eighth, and ninth: LinnCo LLC (NASDAQ:LNCO ) , Linn Energy LLC. (NASDAQ:LINE ) , and Vanguard Natural Resouces, LLC. (NASDAQ:VNR ) , respectively, to complete the April 17 MoPay SML top-yield dog list.
A ctionable Conclusion: (1) Analysts Estimated the 5 Lowest-Priced of The Top Ten Highest-Yield MoPay SML Dogs Would Deliver
26.66% Vs. (2) 19.34 % Net Gains by All Ten As Of April 17 , 2016
$5000 invested as $1k in each of the five lowest-priced stocks in the top ten MoPay SML kennel by yield were predicted by analyst 1-year targets to deliver 37.81% more net gain than $5,000 invested as $.5k in each of all ten. The fourth lowest-priced MoPay SML dog, Atlas Resource Partners L.P. was projected to deliver the best net gain of 49.95%.
The five lowest-priced MoPay SML dogs for April 17 were: ARMOUR Residential REIT Inc.; Fifth Street Finance; Prospect Capital Corporation; Atlas Resource Partners, L.P.; and FS Investment Corporation, with prices ranging from $3.17 to $10.25.
The five higher-priced MoPay SML dogs completing the top ten yield list for April 9 were: LinnCo LLC; Stellus Capital Investment Corporation; Linn Energy, LLC.; Vanguard Natural Resouces, LLC; and American Capital Agency, whose prices ranged from $12.13 to $21.60.
That distinction between the 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 could happen in the market. Analysts are historically 20% to 80% accurate on the direction of change and about 0% to 20% accurate on the degree of the change.
The stocks listed above were suggested only as reference points for a monthly pay SML Cap dividend dog stock purchase/sale research process for mid-April, 2015. These were not recommendations.
The gains/declines as reported do not factor in any tax problems resulting from dividend, profit, or return of capital distributions. Consult your tax advisor regarding the source and consequences of "dividends" from any investment.
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.dividend.com ; finance.yahoo.com ; analyst mean target price by Thomson/First Call in Yahoo Finance.
Disclosure: The author is long ARR, FSC.
The author wrote this article themselves, and it expresses their own opinions. The author is not receiving compensation for it (other than from Seeking Alpha). The author has no business relationship with any company whose stock is mentioned in this article.