70 All-Star & Graham Value Stocks: 57 Fit To Buy In June

Foreword

About Large Cap Value

A Value ranking for large cap stocks from YCharts puts together complementary strategies found during their stock research. As a value ranking, it looks at the price of a stock relative to a number of measurements that determine intrinsic firm value. Only the largest 10% of companies based on market cap are allowed in this portfolio.

What it is: The Value Score is a composite score. It tells you how much you are getting in terms of profits, cash flows, assets, sales, etc. for the stock price that you pay. It is a relative measurement, so it says nothing about the overall level of the market. Rather, it answers the question: “Given the current market level, which stocks give you the most current value for your dollar of investment?” Tens are the most value, and 1s are the least.

How to use it: Use it to find companies that are selling at a low price relative to their assets and profits.

Limitations of the Value Score: Watch out for companies with a lot of uncertainty or bad prospects for the future (e.g., Pharma companies with expiring patents, industries on the decline, etc.).

About the Ben Graham Formula

The Ben Graham Formula strategy contains ultra-stable stocks that will infrequently lose money if held over a long period of time. It was developed based on a screen in Graham’s book, “The Intelligent Investor.” For those who have the book, it is the “Defensive Investor” screen. It selects stocks that are large in terms of sales and total assets, have a strong track record of earnings and dividend payments, have a reasonable current ratio and level of long term debt, and have a low valuation given by PE Ratios and Price to Book Value ratios. -YCharts

While 13 out of this collection of 70 All-Star-Value Dividend stocks are too pricey to justify their skinny dividends, the remaining 57 of them, by yield, live up to the ideal of offering annual dividends (from a $1K investment) exceeding their price per share.

57 Ideal Value Graham Dogs for June

In the current market, the dividends from $1k investments in 57 of the 70 stocks listed above, met or exceeded their single share prices as of 6/19/24.

As we are now past the fourth anniversary of the 2020 Ides of March dip, the time to snap up some of the 57 ideal top-yield All-Star-Value Graham dogs is now… unless another big bearish drop in price looms ahead. (At which time, your strategy could be to add to your position in any of these you then hold.)

Actionable Conclusions (1-10): Analysts Estimate 33.421% To 57.79% Top Ten All-Star-Value Graham Net Gains To June 2025

Four of the ten top-picks by yield were verified as also being 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 forecast for All-Star-Value derived dividend dogs (as graded by Brokers) was 40% accurate.

Estimated dividend-returns from $1000 invested in each of the highest-yielding stocks and their aggregate one-year analyst median target-prices, as reported by YCharts, created these 2024-25 data-points. (Note: target prices by lone-analysts were not used.) Ten probable profit-generating trades projected to June 2025 were:

Vale S.A. (VALE) netted $577.93 based on the median of target price estimates from 24 analysts, plus dividends, less broker fees. The Beta number showed this estimate subject to risk/volatility 3% under the market as a whole.

Ternium S.A. (TX) was projected to net $431.35, based on dividends, plus the median of target price estimates from 11 analysts, less broker fees. The Beta number showed this estimate subject to risk/volatility 68% greater than the market as a whole.

Provident Financial Services, Inc. (PFS) was projected to net $420.92, based on the median of target price estimates from 5 analysts, plus the estimated annual dividend, less broker fees. The Beta number showed this estimate subject to risk/volatility 3% greater than the market as a whole.

Granite Ridge Resources, Inc. (GRNT) was projected to net $418.14, based on the median of target price estimates from 5 analysts, plus the estimated annual dividend, less broker fees. A Beta number was not available for GRNT.

TORM plc (TRMD) was projected to net $392.70, based on the median of target price estimates from 2 analysts, plus dividends, less broker fees. The Beta number showed this estimate subject to risk/volatility 73% under the market as a whole.

Frontline plc (FRO) was projected to net $383.04, based on dividends, plus the median of target price estimates from 5 analysts, less broker fees. The Beta number showed this estimate subject to risk/volatility 7% greater than the market as a whole.

Eagle Bancorp, Inc. (EGBN) was projected to net $373.82 based on the median of target price estimates from 3 analysts, plus dividends, less broker fees. The Beta number showed this estimate subject to risk/volatility 7% more than the market as a whole.

International Seaways, Inc. (INSW) was projected to net $356.54, based on a median of target estimates from 8 analysts, plus dividends, less broker fees. The Beta number showed this estimate subject to risk/volatility -0.05% opposite the market as a whole.

Petroleo Brasileiro Petrobras (PBR) was projected to net $337.94, based on dividends, plus the median of target price estimates from 14 analysts, less broker fees. The Beta number showed this estimate subject to risk/volatility 42% greater than the market as a whole.

DHT Holdings, Inc. (DHT) was projected to net $332.11, based on dividends, plus the median of target price estimates from 7 analysts, less broker fees. The Beta number showed this estimate subject to risk/volatility 68% less than the market as a whole.

The average net-gain in dividend and price was estimated to be 40.24% on $10k invested as $1k in each of these ten stocks. The average Beta showed these estimates subject to risk/volatility 25% 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.”

Top 50 All-Star-Value Graham Picks By Broker 1Yr Price Targets

This scale of broker-estimated upside (or downside) for stock prices provides a scale of market popularity. Note: no broker coverage or 1 broker coverage produced a zero score on the above scale. This scale can be taken as an emotional component as opposed to the strictly monetary and objective dividend/price yield-driven report below. As noted above, these scores may also be taken as contrarian.

Top 50 All-Star-Value Graham Picks By Annual Dividend Yield

Actionable Conclusions (11-20): Ten Top Stocks By Yield Are The June Dogs of The All-Star-Value Graham Pack

Top ten All-Star-Value stocks selected 6/19/24 by yield represented just three of eleven Morningstar sectors. First place was secured by the first of five energy sector representatives, BW LPG Ltd. (BWLP) [1]. The other four Energy members placed second and fifth through seventh: TORM PLC [2], Okeanis Eco Tankers Corp. (ECO) [5], Flex LNG Ltd. (FLEX) [6], and Petroleo Brasileiro S.A. Petrobras (PBR) [7].

Then third place was nabbed by the lone materials sector member, Vale SA [3].

Thereafter, four financial services sector members placed fourth, and eighth to tenth: FS KKR Capital Corp (FSK) [4], Eagle Bancorp Inc. [8], Blue Owl Capital Corp. (OBDC) [9], and Bancolombia S.A. (CIB) [10], to complete this All-Star-Value Graham top ten, by yield, for June.

Actionable Conclusions: (21-30) Ten All-Star-Value Graham Dividend Stocks Showed 13.9% To 26.1% Upsides To May, 2025, With (31) Four Losers Sagging 0.61 to 31.56%

To quantify top-yield rankings, analyst median-price target estimates provided 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 26.54% Advantage For 5 Highest Yield, Lowest Priced of Top-Ten All-Star-Value Graham Dogs To June 2025

Ten top All-Star-Value Graham stocks were culled by yield for this monthly update. Those (dividend/price) results provided by YCharts did the ranking.

As noted above, top-ten All-Star-Value Graham Dogs selected 6/19/24, showing the highest dividend yields, represented three of eleven sectors in the Morningstar scheme.

Actionable Conclusions: Analysts Estimated 5 Lowest-Priced Of Ten Highest-Yield All-Star-Value Graham Dividend Stocks (33) Delivering 32.78% Vs. (34) 25.89% Net Gains from All Ten by June, 2025

$5,000 invested as $1k in each of the five lowest-priced stocks in the top ten All-Star-Value dividend pack, by yield, were predicted by analyst 1-year targets to deliver 26.54% more gain than $5,000 invested as $.5k in all ten. The very lowest-priced All-Star-Value top-yield stock, Vale SA, was projected to deliver the best net gain of 57.79%.

The five lowest-priced top-yield All-Star-Value Graham dividend stocks for June were: Vale SA; ;Petroleo Brasileiro SA Petrobras; Blue Owl Capital Corp; Eagle Bancorp; BW LPG Ltd, with prices ranging from $11.18 to $18.01

The five higher-priced top-yield All-Star April leaders were: FSK KKR Capital Corp; Flex LNG; Okeanis Eco Tankers; Bancolombia SA (CIB); TORM PLC, whose prices ranged from $19.40 to $35.16.

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, 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 57 stocks ripe for picking at the start of the article, here is a repeat of the list at the end:

57 Ideal Value All-Star Dogs

In the current market bounce, dividends from $1K invested in the fifty-seven stocks listed above met or exceeded their single share prices as of 6/19/24

As we are well-beyond four years since the 2020 Ides of March dip, the time to snap up some top-yield All-Star-Value dogs is now… unless another big bearish drop in price looms ahead. (At which time your strategy would be to add to your holdings.)

Recent vs. Break-Even Top-Ten All-Star-Value Stock Prices

Since all of the top-ten All-Star-Value Dividend shares are now priced less than the annual dividends paid out from a $1K investment, the following top chart shows the dollar and percent variants to all ten top dogs conforming to (but not exceeding) the dogcatcher ideal.

Those at recent prices are the subject of the middle chart, with the breakeven pricing of all ten delivered in the bottom chart.

You could look at the top chart as an indicator of how high each stock might rise in the coming year or two. However, it also shows how much the price could rise (in either dollars or percentage) before it exactly conforms to the standard of dividends from $1K invested, equaling the current single share price.

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 All-Star-Value Graham Dividend dog stock purchase or sale research process. These were not recommendations.

Open source dog art from Dividend Dog Catcher; Source data from YCharts.com.