Summary
- Kiplinger Today, a "daily digest of timely, trusted advice" regularly lists stocks and funds for investors online. This list of 50 Billionaire Picks curated by James Brumley appeared on 4/18/19.
- Brumley says, "Rich people. get richer for a reason, so it could be worthwhile to study the top stocks that billionaires and high-asset hedge-funds are plowing long-term capital into."
- 31 of 50 billionaire-selected stocks paid dividends. The top 10 ranged from 3.03%-6.95% by annual yield and ranged from -19.16%-43.33% by annual price target upsides per brokers.
- 10 top net gain Kiplinger billionaire picked dividend stocks boasted net gains from 13.48% to 43.46%.
- $5k invested in the lowest-priced five top-yield Kiplinger's billionaire preferred dividend dogs showed 17.88% more net gain than from $5k invested in all 10. Little low-priced Kiplinger billionaire select dogs ruled the pack.
Actionable Conclusions (1-10): Analysts Estimated 15.26% To 49.62% Net Gains For 10 Top Kiplinger Billionaire Choice Dogs Come 2020
Four of 10 top Kiplinger billionaire class dividend stocks by yield were among the top 10 gainers for the coming year based on analyst one-year target prices. (They are tinted gray in the chart below). Thus, this yield-based forecast for these billionaire dogs was graded by Wall St. Wizards as 40% accurate.
Projections were based on estimated dividends from $1k invested in each of the highest yielding stocks and their aggregate one-year analyst median target prices, as reported by YCharts. Note: One-year target prices by lone analysts were not applied. 10 probable profit-generating trades projected to April 22, 2020 were:
Fiat Chrysler Automobiles (FCAU) was projected to net $496.22, based on a median of target price estimate from four analysts, plus dividends, less broker fees. The Beta number showed this estimate subject to risks 89% more than the market as a whole.
CVS Health Corp. (CVS) netted $424.25 based on a median of estimates from 27 analysts, plus dividends. The Beta number showed this estimate subject to volatility, 6% less than the market as a whole.
Allergan Plc (AGN) was projected to net $329.37, based on the median of target estimates from 23 analysts, plus dividends, less broker fees. The Beta number showed this estimate subject to risks 34% more than the market as a whole.
Vistra Energy Corp. (VST) was projected to net $238.11, based on dividends, plus the median of target price estimates from 12 analysts, less broker fees. A Beta number was not available for VST.
The Brink's Co. (BCO) was projected to net $225.00, based on dividends, plus the median of target price estimates from six analysts, less broker fees. The Beta number showed this estimate subject to volatility 58% more than the market as a whole.
Extended Stay America (STAY) was projected to net $222.98, based on dividends, plus a mean target price estimate from 12 analysts, less broker fees. The Beta number showed this estimate subject to risk 25% above the market as a whole.
General Motors Co. (GM) was projected to net $213.31, based on a median of target price estimates from 22 analysts plus annual dividend, less broker fees. The Beta number showed this estimate subject to risk 27% more than the market as a whole.
Royal Caribbean Cruises (RCL) was projected to net $194.27, based on the median of target price estimates from 23 analysts, plus annual dividend, less broker fees. The Beta number showed this estimate subject to risks 52% more than the market as a whole.
Activision Blizzard Inc. (NASDAQ:ATVI) was projected to net $182.58, based on dividends, plus the median of target price estimates from eight analysts, less broker fees. The Beta number showed this estimate subject to risk 17% less than the market as a whole.
American International Group (AIG) was projected to net $152.58 based on dividends, plus the median of target estimates from 14 brokers, less transaction fees. The Beta number showed this estimate subject to risk 37% more than the market as a whole.
The average net gain in dividend and price was estimated at 26.79% on $10k invested as $1k in each of these 10 stocks. These gain estimates were subject to average risks 20% more than the market as a whole.
Actionable Conclusions (11-13): (Bear Alerts) Analysts Predicted Three Kiplinger Billionaire Top Yielders To Show 3.79%-4.94% Losses to April 2020
The probable losing trades revealed by Y-Charts for 2020 were:
Apple Inc. (AAPL) projected a loss of $37.89 based on dividend and a median of the target price estimates from 41 analysts including broker fees. The Beta number showed this estimate subject to risks 14% more than the market as a whole.
Intel Corp. (INTC) projected a loss of $40.28 based on dividend and a median of the target price estimates from 40 analysts including broker fees. The Beta number showed this estimate subject to risks 21% less than the market as a whole.
Campbell Soup Co. (NYSE:CPB) projected a loss of $49.43 based on dividend and a median of the target price estimates from 16 analysts including broker fees. The Beta number showed this estimate subject to volatility 58% less than the market as a whole.
The average net loss in dividend and price was estimated at 4.25% on $3k invested as $1k in each of these three stocks. These loss estimates were subject to average volatility 22% less than 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 Kiplinger Billionaire Picks By Target Gains
50 Kiplinger Billionaire Picks By Yield
Actionable Conclusions (11-20): 10 Top Kiplinger Billionaire Dividend Stocks By Yield
Top 10 Kiplinger billionaire loved stocks selected 4/22/19 by yield represented six of 11 Morningstar sectors. One from the energy sector placed first, CVR Energy Inc. (CVI) [1].
Second place was claimed by the lone real estate sector representative in the top 10, VICI Properties Inc (VICI) [2]. That selection was followed by four consumer cyclical representatives in third, fourth, fifth, and tenth places:
Extended Stay America Inc. [3], Fiat Chrysler Automobiles NV [4], General Motors Co. [5], and Restaurant Brands International Inc. (QSR) [10].
The lone healthcare representative emerged in sixth place, CVS Health Corp. [6]. That was followed in seventh by the lone consumer defensive representative, Campbell Soup Co. [7].
Finally, two technology firms placed eighth and ninth, Broadcom Inc. (AVGO) [8], and Qualcomm Inc. (QCOM) [9], to complete the Kiplinger Billionaire top 10 by yield.
Actionable Conclusions: (21-30) Top 10 Kiplinger April Billionaire Loved Dogs Showed 13.48%- 43.46% Upsides While (31) Four Lowly Downsiders Ranged -4.78% To -7.50%.
To quantify top dog rankings, analyst mean price target estimates provide a "market sentiment" gauge of upside potential. Added to the simple high-yield metrics, analyst mean price target estimates became another tool to dig out bargains.
Analysts Forecast A 17.88% Advantage For 5 Highest Yield, Lowest Priced Kiplinger Billionaire Loved Dividend Stocks To 2020
10 top Kiplinger billionaire dividend dogs were culled by yield for this update. Yield (dividend/price) results provided by YCharts did the ranking.
As noted above, top 10 Kiplinger billionaire choice dividend dogs selected 4/22/19 showing the highest dividend yields represented six of 11 in the Morningstar sector scheme.
Actionable Conclusions: Analysts Predicted Five Lowest-Priced Of The Top 10 Highest-Yield Kiplinger Billionaire Choice Dogs (32) Delivering 17.96% Vs. (33 ) 15.35%Net Gains by All 10 Come April 2020
$5k invested as $1k in each of the five lowest-priced stocks in the top 10 Dividend Kiplinger Billionaire picked kennel by yield were predicted by analyst one-year targets to deliver 17.88% more gain than $5k invested as $.5k in all 10. The very lowest priced selection, Fiat Chrysler Automobiles NV, was projected to deliver the best net gain of 46.92%.
The five lowest-priced top-yield Kiplinger Billionaire Picked dividend dogs as of April 22 were: Fiat Chrysler Automobiles NV, Extended Stay America Inc., VICI Properties Inc., Campbell Soup Co., General Motors Co., with prices ranging from $16.52 to $39.50.
Five higher-priced Kiplinger Billionaire Picked dividend dogs as of April 22 were: CVR Energy Inc., CVS Health Corp., Restaurant Brands International Inc., Qualcomm Inc., Broadcom Inc., whose prices ranged from $43.15 to $315.00.
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 20% to 80% accurate on the direction of change and just 0% to 20% 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.
Stocks listed above were suggested only as possible reference points for your Kiplinger Billionaire Picks stock purchase or sale research process. These were not recommendations.
