Metcash Delivers The Goods Down Under

Every New York stock exchange trading day I'm posting a daily dividend stock or fund review. I'll share the three chief qualities of just one equity or fund that could be selected for a dividend stock portfolio I've named the Safari to Sweet Success.

This week my Safari portfolio is adding a company from the consumer defensive sector, which includes thirteen industries all related to those conveniently packaged goods we've just gotta have. The industries are: beverages, brewed, soft, or distilled;  confectioners; discount stores; education & training; farm products; food distribution; grocery stores; household & personal products; packaged foods; pharmaceutical retailers; tobacco.

Today I'm reviewing a wholesale distribution representative, a mid cap stock, Metcash Limited. Its trading ticker symbol is MHTLY

Metcash Ltd is a wholesale distribution and marketing company. The company specializes in grocery, fresh produce, liquor, hardware, and other fast-moving consumer goods in Australia and New Zealand.

It serves independent retailers and other businesses across the food and grocery, liquor, and hardware industries. Metcash Limited was founded in 1920 and is based in Macquarie Park, Australia.

Three key data points measure dividend equities or funds like Metcash Limited (MHTLY): 

(1) Price

(2) Dividends

(3) Returns

MHTLY Price

Metcash's price at yesterday's market close was $15.95 per share.  A year ago its price was $9.75. Thus, it gained $6.20 per share in the past year.  

Assuming Metcash's price keeps gaining in price at the same pace. its price will grow from $15.95 to $22.15 in the next year..

MHTLY Dividends

Metcash's's most recent semi-annual dividend was $0.29 declared in December and paid January 26, 2018.

The Metcash annual dividend for 2018 is estimated at $0.58 paid in two semi-annual installments July (or August)  and January.

The yield from that $0.58 annual dividend is 3.6% at yesterday's $15.95 share price.

Gains For MHTLY?

Adding the $0.58 annual dividend to the $6.20 estimated price gain makes $6.78 the projected gross annual gain, which will absorb the cost to trade those shares.  

A $1,000.00 invested at yesterday's $15.95 price bought 63 shares. 

The $10 broker fee paid as $5 at purchase and $5 at sale equals about $0.16 per share Subtracting that $0.16 brokerage cost from the estimated $6.78 gross gain leaves a net gain to next year of $6.62 X 63 shares = $417.06 or a 41.5% net gain on a $1.004.85 investment.

Therefore, Metcash Limited (whose ticker symbol is MHTLY), now shows a possible 41.5% net gain including a 3.6% dividend yield. 

No analysts cover this stock. There is low trading volume on the stock. But the price has been climbing since August, 2015.

These forward-looking numbers are conjecture based on past year performance. The actual results remain to be seen. They could turn out to be far higher or lower. More study is required for you to determine if Metcash Limited (MHTLY) is worth your time and money.

Disclaimer: This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a solicitation, ...

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