Fredrik Arnold Investing Group Leader
Summary
Eight of the fourteen highest-yield 'Safer' Big BBB Dogs, including Suburban Propane, Verizon, and Realty Income, currently meet the dogcatcher ideal for buyable dividend value.
Analyst 1-year targets project average net gains of 23.91% for the top ten BBB stocks, with risk/volatility 26% below the market average.
Dividend safety is highlighted by positive free cash flow yields exceeding dividend yields for the 'safer' group, while eight names show negative free cash flow margins and are considered unsafe.
Market corrections or dividend increases could bring all top Big BBB Dogs to 'fair price' levels, enhancing yield parity for income-focused investors.
In an interview with Barron’s, Steven Wieting, strategist at Citi Wealth, noted that a growing dividend is a tangible benefit for shareholders and a hallmark of companies with strong balance sheets.“Nobody can fake a dividend,” he said.
Looking for a portfolio of ideas like this one?…