4 Fortune 500 Industry Leaders Boast Perfect June Earnings

introduction

This article is based on Fortune’s 2023 survey of the 500 largest U.S. companies (F500-IL).

“Size matters: The 50 largest companies on this year’s list represent 49% of the Fortune 500’s total revenues and 45% of profits.” This article These cover 50 and another 18 as industry leaders. The 2024 list is scheduled to be released in June, assuming Fortune sticks to last year’s production schedules.

Any group of stocks is understood more clearly when subjected to yield-based (dog catcher) analysis, and this set of 2023 F500-IL is ideal for the dog catcher process. Below is May 30 data for the 58 dividend stocks that operate the F500IL as analyzed by YCharts.

Prices for 4 of 58 dividend picks make the possibility of owning dividend-producing stocks from this group a reality for first-time investors.

The 4 best Dogcatcher stocks to buy in May 2024 are: Energy Transfer LP (ET); Verizon Communications (VZ); Pfizer (PFE); Ford Motor (F).

All four of them live up to the ideal of having their annual profits from a $1,000 investment exceed their individual stock prices. Many investors see this condition as a “look closer to maybe buy” opportunity.

Actionable Conclusions (1-10): Analysts estimate net gains of 16.82% to 32.87% from ten F500-IL dividend stocks through June 2025

Four of the top ten F500-IL dividend stocks by yield were also among the top ten gainers for next year based on analysts’ one-year target prices. (It is colored gray in the chart below). Thus, the return-based forecast for this May favorite is rated by Wall St. Wizards as 50% accurate.

Estimated dividends from $1,000 invested in each of the top-yielding F500-IL stocks, combined with the average aggregate one-year price targets from analysts (as reported by YCharts), produced the following list. (Note: One-year target prices by the sole analysts are not included.) Thus, ten potential profit-generating trades, projected through May 2025, are:

CVS Health (CVS) was expected to reach $290.18 based on the average target estimate from 26 analysts, plus earnings and brokerage fees. The beta number showed that this estimate is subject to 44% lower risk/volatility than the market as a whole.

Energy Transfer LP was expected to net $281.48, based on the average price target estimates from 17 analysts, plus earnings, less broker fees. The beta number showed that this estimate is subject to 64% greater risk/volatility than the market as a whole.

Baker Hughes (BKR)’s net earnings were expected to be $259.74 based on the dividend, plus the average price target estimate from 25 analysts, less broker fees. The beta number showed that this estimate is subject to 44% greater risk/volatility than the market as a whole.

Ford Motor Co. was expected to have net earnings of $241.51, based on dividends, plus the average price target estimate from 25 analysts, less brokerage fees. The beta number showed that this estimate is subject to 62% greater risk/volatility than the market as a whole.

United Parcel Service (UPS) was expected to be valued at $224.94 based on the average price target estimates from 28 analysts, plus annual earnings, less broker fees. The beta number showed that this estimate is subject to 5% greater risk/volatility than the market as a whole.

Omnicom Group Inc. was expected to achieve (OMC) net $222.40, based on dividends, plus average price target estimates from 11 analysts, less broker fees. The beta number showed that this estimate is subject to 4% lower risk/volatility than the market as a whole.

Genuine Parts Company (GPC) was expected to net $211.18, based on the dividend, plus the average price target estimates from 11 analysts, less broker fees. The beta number showed that this estimate is subject to 6% lower risk/volatility than the market as a whole.

Cisco Systems Inc. was expected to achieve (CSCO) net of $204.23, based on the average estimate of 22 analysts, plus earnings and brokerage fees. The beta number showed that this estimate is subject to 13% lower risk/volatility than the market as a whole.

Sysco Corp. was expected to achieve (SYY) net $199.24 based on dividends, plus average target estimates from 15 brokers, less transaction fees. The beta number showed that this estimate is subject to 16% greater risk/volatility than the market as a whole.

MetLife (MET) was expected to net $198.78, based on the dividend, plus the average price target estimate from 125 analysts, less broker fees. The beta number showed that this estimate is subject to 25% risk/volatility in the market as a whole.

The average net gain in earnings and price was estimated at 23.34% on $10,000 invested as $1,000 in each of these 10 stocks. These earnings estimates were subject to an average risk/volatility of 15% greater than the market as a whole.

Dog Earnings Base

Stocks earned their “dog” nickname by displaying three traits: (1) they pay reliable and frequent dividends, (2) their prices have fallen to where (3) their yield (earnings/price) has risen higher than their peers. Thus, the highest-yielding stocks in any group became known as “dogs.” More precisely, these are actually what are best called “underdogs.”

65 F500-IL in May according to target analyst data

65 F500-IL may be produced

Actionable Conclusions (11-20): Top Ten F500-IL by Yield

The top ten F500-ILs by return in May represent eight of eleven Morningstar sectors. First place went to the soloist energy Representative of Energy Transmission Company LP (1).

the Telecommunications Services Runner-up member, Verizon Communications. Then third place went to the first of two health care Pfizer (3) represented (PFE), while the other, CVS Health Corp., took eighth place. (8).

He got fourth place Consumer defensiveness Representative of Philip Morris International (PM) (4). a Consumer cyclical The member, Ford Motor (5), came in fifth place.

One Basic materials The sector member ranked sixth, the Dow Jones (6). The first of two Industries Members ranked seventh, United Parcel Service (UPS) (7). The other place was occupied by ManpowerGroup Inc. in ninth place. (MAN) (9).

Finally, the tenth place was awarded the only position technology International Business Machines Corporation (IBM) representative (10), completing the F500-IL Top 10 dividend package in May.

Actionable Conclusions: (21-30) Ten of the top F500-ILs in May showed increases of 17.95% to 25.55%, and (31) two -2.02% and -4.70%

To determine the top dog rankings, analysts’ median price target estimates provided a “market sentiment” measure of upside potential. In addition to simple high-return metrics, average analyst price target estimates have become another trade-mining tool.

Analysts expect a 17.14% advantage for the five highest- and lowest-yielding stocks out of the 10 F500-IL stocks as of May

The top ten Fortune F500-IL scores (dividends/price), provided by YCharts, produced the following ranking.

As noted above, the top ten F500-IL stocks shown on 05/30/24, showing the highest dividend yields, represent eight of the eleven stocks in the Morningstar sector chart.

Actionable conclusions: Analysts expect the 5 lowest-priced F500-ILs (32) among the top 10 with the highest productivity (32) to yield 23.68% vs. (33) 18.63% net gains for all ten come May 2025

$5,000 invested $1,000 in each of the five lowest-priced stocks in the top 10 F500-IL stocks by return, and analysts’ one-year targets predicted a gain of 27.11% greater than a $5,000 investment of $0.5,000. In all ten stocks. The fifth-lowest-priced pick, CVS Health Corp., was expected to post the best net gain of 29.02%.

The five lowest-priced top-yielding F500-ILs for the 2023 Dividend Dogs as of May 30 were: Ford Motor; LP power transfer; Pfizer; Verizon Communications; CVS Health, with prices ranging from $11.77 to $56.04.

The five highest-priced F500-IL dividend dogs as of May 30 are: Dow Inc; ; Philip Morris International; United Parcel Service; International Business Machines, which ranged in price from $57.39 to $165.63.

The distinction between five low-priced dividend dogs and the general field of ten reflects Michael B. O’Higgins’ “basic method” for beating the Dow Jones. The size of expected gains based on analyst targets has added a unique component, “market sentiment,” which measures upside potential. You’ve saved the here and now the equivalent of waiting a year to see what might happen in the market. Caution is advised, since analysts have historically been only 15% to 85% accurate with respect to the direction of change and only 0% to 15% accurate with respect to the degree of change.

The above net profit/loss estimates did not take into account any foreign or domestic tax issues arising from the distributions. Consult your tax advisor regarding the source and consequences of “dividends” from any investment.

Conclusion

This article examines the industry leaders in the Fortune 500 and focuses on the top 30 companies for March. Therefore, nearly half of the original list of 58 dividend-paying companies was neglected. To treat this condition, the following is provided

Complete list of 68 Fortune 500 industry leaders

(Stocks are grouped alphabetically by index, in ascending order.) Stocks colored bluish-green are sector leaders. The three wine-colored listings are privately owned, or FX-listed stocks not listed on YCharts.

If you somehow missed the suggestion of which stocks are ready to pick at the beginning of this article, here’s a duplicate of the list at the end:

The May prices of 4 of these 68 F500-ILs make the possibility of owning dividend-producing stocks from this group more viable for first-time investors.

All four of them live up to the ideal of having annual dividends from a $1,000 investment that equal or exceed their individual stock prices. Many investors see this condition as a “look closer to maybe buy” opportunity.

How All Top 10 F500-IL Stocks Can Become Fairly Priced Perfect Dogs

Four of the top ten F500-IL stocks in May 2024 were priced at less than the annual dividend paid from a $1,000 investment. The dollar and percentage differences between recent and fair prices are detailed in the top chart. Four ideal, fair-priced stocks plus the six at current prices are shown in the middle chart. Finally, fair pricing for all of the top ten companies that fit this ideal is the subject of the bottom chart.

With renewed downside market pressure to 50.7%, it is possible for all 10 of the top-yielding F500-IL stocks to become fair priced as their annual returns (from $1K invested) meet or exceed their individual stock prices. This package got off to a good start with four out of ten at a really fair price.

The above stocks are suggested only as potential reference points for your buying or selling research process. These were not recommendations.

Charts and graphs were compiled by Rydlun & Co., LLC from data sourced from www.indexarb.com; YCharts.com; Yahoo Finance – Live stock market, quotes, and business news; Analyst mean price target by YCharts. Dog Portrait: Open source dog art from Dividend Dog Catcher.