E Wiz Dogs: Do You Buy?

It's that most wonderful time of the investing year. Pundits offer tidbit tips to tempt traders to their tallies. These tempting trades I call "WizDogs" because Wall St. wizards wrought them.

The Wiz list below reveals fifty-five of those pundit favorites.47 tinted greenish show "WizDogs" with free cash flow yield exceeding dividend yield (so their cash income margin covers anticipated dividends). 

Top ten safe WizDogs, KHC, PEP, VFC, PG, SLF, LB, IBM, KO, EMR, & SPG dividend yields ranged 2.83%-3.52%. Cash yields ranged 3.32%-12.65%.

For comparison, top ten Dow Dogs and SPY (S&P500) Dogs were listed. Dow: INTC; MRK; MCD; PG; CAT; IBM; KO; CSCO; PFE; VZ. S&P500: HST; VZ; F; PM; PBI; SPLS; T; HCP; STX; CTL .

Wizards credited 5 top yield safe "WizDogs" with 31.76% LESS, Safe Dow dogs with 68.60% more, and safe SPY dogs with 9.75% more gains from $5k invested in the lowest-priced five than from $5K invested in ten.

The Dividend Dogs Rule

The "dog" moniker was earned by stocks 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, "underdogs".

(Click on image to enlarge)

(Click on image to enlarge)

Do "WizDogs Cover All Sectors?

The top 30 of 47safe "WizDogs" came from 9 of 11 business sectors. These were: real estate (1); industrials (3); consumer defensive (6); technology (4); consumer cyclical (4); financial services (7); healthcare (2); basic materials (2); energy (1). Two sectors were not represented: communication services; utilities.

Safe WIZ, DOW, & SPY Dogs Have Cash Margins to Cover Dividends

 

 

Periodic Safety Check

Three previous articles discussed the attributes of these 30 WIZDOW, & SPY dividend dogs from which these "safest" were sorted. You see above the green tinted lists that passed the dividend "stress" test. These 30 WIZ, DOW, & SPY dogs report sufficient annual cash flow yield to cover their anticipated annual dividend yield. 

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Disclosure: The net gain estimates mentioned above did not factor in any foreign or domestic tax problems resulting ...

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Chee Hin Teh 4 years ago Member's comment

Thanks for sharing and merry christmas

Chee Hin Teh 4 years ago Member's comment

Thanks fr sharing