Foreword
As a 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 June collection of 53 Kings is too pricey to justify their skinny dividends, seven of the top-ten, by yield, and one more outside those ten, live up to the ideal of offering annual dividends (from a $1K investment) exceeding their single share prices, and this month there are eight more to watch. Note that two Kings failed to increase dividends in the past year and so departed from the list, Leggett and Platt (LEG), and 3M Company (MMM).
In the current market adjustment, it is now possible for these eight, Altria Group Inc (MO), Universal Corp (UVV), Canadian Utilities Ltd (OTCPK:CDUAF), Northwest Natural Holding Co (NWN), United Bankshares Inc (UBSI), Kenvue Inc (KVUE), Fortis Inc (FTS), (seven inside the top ten), and Hormel Foods Corp (HRL), (the one outsider) to stay fair-priced with their annual-yield (from $1K invested) meeting or exceeding their single-share prices.
The eight to watch are: Black Hills Corp (BKH); Federal Realty Investment Trust (FRT); Stanley Black & Decker (SWK); Archer Daniels Midland (ADM); Coca-Cola (KO); SJW Group (SJW); Middlesex Water Co (MSEX); California Water Service Group (CWT).
BKH is $2.60 over-priced, SWK is $25.53 overpriced, and FRT needs to lose $34.95 in price to join the ideal eight.
As we have passed the four-year mark of the 2020 Ides of March dip, the time to snap-up those eight lingering top-yield dividend King dogs may be 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.) To learn which (if any) of these Kings show “safer” dividends (with sufficient cash reserves to cover their payout) click on the last bullet point at the top 0f the article after June 15.
Actionable Conclusions (1-10): Analysts Predict 18.24% To 30.31% Top-Ten Kingly Net Gains To June 2025
Three of the ten top Kings by yield were 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 June 7 forecast (as graded by Brokers) was 30% 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 June 2025 were:
SJW Group was projected to net $303.06, based on the median of target price estimates from 5 analysts, plus dividends, less broker fees. The Beta number showed this estimate subject to risk/volatility 40% under the market as a whole.
Kenvue Inc was projected to net $256.99, based on the median of target price estimates from 14 analysts, plus dividends, less broker fees. A Beta number was not available for KVUE.
Northwest Natural Holding Co was projected to net $248.32, based on a median of target estimates from 9 analysts, plus dividends, less broker fees. The Beta number showed this estimate subject to risk/volatility 45% less than the market as a whole.
Target Corp (TGT) was projected to net $215.31, based on dividends, plus the median of target price estimates from 30 analysts, less broker fees. The Beta number showed this estimate subject to risk/volatility 21% over the market as a whole.
United Bankshares Inc was projected to net $206.78, based on the median of target price estimates from 6 analysts, plus the estimated annual dividend, less broker fees. The Beta number showed this estimate subject to risk/volatility 1% less than the market as a whole.
Middlesex Water Co was projected to net $203.36, 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 21% less than the market as a whole.
National Fuel Gas Co (NFG) was projected to net $201.77 based on dividends, plus the median of target price estimates from 3 analysts, less broker fees. The Beta number showed this estimate subject to risk/volatility 38% less than the market as a whole.
Johnson & Johnson (JNJ) was projected to net $191.09, based on dividends, plus the median of target price estimates from 22 analysts, less broker fees. The Beta number showed this estimate subject to risk/volatility 46% less than the market as a whole.
American States Water Co (AWR) netted $187.61 based on a median target price estimate from 2 analysts, plus dividends, less broker fees. The Beta number showed this estimate subject to risk/volatility 53% less than the market as a whole.
Sysco Corp (SYY) was projected to net $182.43 based on target price estimates from 15 analysts, plus annual dividend, less broker fees. The Beta number showed this estimate is subject to risk/volatility 17% greater than the market as a whole.
The average net gain in dividend and price was estimated to be 21.97% on $10k invested as $1k in each of these ten stocks. The average Beta ranking showed these estimates subject to risk/volatility 23% 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 53 Dividend Kings By Yield
Actionable Conclusions (11-20): Ten Top Stocks By Yield Are The June Dogs Of The Dividend Kings
The top ten King Dogs selected 6/7/24 by yield represented six of eleven Morningstar sectors.
The first of two consumer defensive representatives took first place, Altria Group Inc. [1], and the other placed second, Universal Corp [2].
Third through fifth and eighth places belonged to four utilities: Canadian Utilities Ltd [3], Northwest Natural Holding Co [4], Black Hills Corp [5], and Fortis Inc [8].
Sixth place was claimed by a lone financial services sector member, United Bankshares Inc [6], and seventh place went to the Healthcare spin-off, Kenvue [7].
Ninth place went to the lone real estate representative, Federal Realty Investment Trust [9]. Finally, the lone industrials sector representative placed tenth, Stanley Black & Decker [10] to complete these June top-ten Kings, by yield.
Actionable Conclusions: (21-30) Top Ten Kings Showed 16.43% To 28.35% Upsides Into June 2024; (31) No Downsiders Showed-up
To quantify top-yield rankings, analyst median price-target estimates made 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 12.61% Advantage For 5 Highest Yield, Lowest Priced, of Top-Ten Dividend Kings By June, 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, the top ten Kings selected 6/7/24 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 15.92% Vs. (33) 14.14% Net Gains by All Ten by June 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 12.61% more gain than $5,000 invested as $.5k in all ten. The very lowest-priced top-yield King stock, Kenvue, was projected to deliver the best net gain of 25.7%.
The five lowest-priced top-yield Dividend Kings as of June 7 were: Kenvue Inc; Canadian Utilities Ltd; United Bankshares Inc; Northwest Natural Holding Co; Fortis Inc, with prices ranging from $18.39 to $40.01
Five higher-priced top-yield Dividend Kings by the June 7 accounting were: Altria Group Inc; Universal Corp; Black Hills Corp; Stanley Black & Decker, and Federal Realty, whose prices ranged from $46.70 to $101.01.
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 eight stocks ripe for picking at the start of the article, here is a repeat of the list at the end:
The following 8 (as of 6/7/24) realized the ideal of offering annual dividends from a $1K investment exceeding their single share prices: seven of the top-ten, by yield, plus one out the top ten, live up to the ideal of offering annual dividends (from a $1K investment) exceeding their single share prices, and there are eight more to watch.
The eight to watch are: Black Hills Corp; Federal Realty Investment Trust; Stanley Black & Decker; Archer Daniels Midland; Coca-Cola; SJW Group; Middlesex Water Co; California Water Service Group.
BKH is $2.60 over-priced, SWK is $25.53 overpriced, and FRT needs to lose $34.95 in price to join the ideal eight.
As we have passed the four-year mark of the 2020 Ides of March dip, the time to snap-up those eight 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 seven 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. Note that three others are within $2.62 to $34.60 of being there. The middle chart compares the seven ideals with three at recent prices. Fair pricing (when all ten top dogs conform to the ideal) is displayed in the bottom chart.
June 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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