Acadian Timber Corp Has Good Wood

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's slot in the Safari portfolio is reserved for the basic materials sector.

That sector includes thirteen industries all related to mining or making commodities. Industries include: agricultural inputs, aluminum; building materials, chemicals, coal, copper, gold, industrial metals, lumber & wood, paper, silver, specialty chemicals, and steel. 

Today we're reviewing a lumber & wood firm that owns and manages timberlands in New Brunswick and Maine, and operates a forest nursery. The company's name is Acadian Timber Corp. It's trading ticker symbol is ACAZF.

The company organizes its operations in two segments, namely: New Brunswick Timberlands and Maine Timberlands. Its products include softwood and hardwood sawlogs, pulpwood, and biomass by-products. Acadian Timber Corp. is headquartered in Vancouver, Canada.

I use three keys to measure dividend equities or funds like Acadian Timber Corp: 

(1) Price

(2) Dividends

(3) Returns

Besides those three main keys, I'll use four more to finally unlock an equity or fund in which to invest.

ACAZF Price

Acadian Timber Corp.'s price at Tuesday's market close was $15.69 per share. The company has positive momentum. Just a year ago its price was $13.73. That's a gain of $1.96 in the past year. Can ACAZF do as well in the coming year? If it does, its price will increase from $15.69 to $17.65, or 11.74%.

ACAZF Dividends

The company's most recent quarterly dividend was $0.2174 declared in October, payable January 15th. The dividend equates to $0.2174 x 4 or $0.87 annually.

At Tuesday's closing price of $15.69 per share, the annual yield from $0.87 showed as 5.5%.

Are Gains Ahead For ACAZF?

Adding the dividend of $0.87 to the $1.96 potential upside from a repeat of 2017's price performance projects a possible $2.83 gross gain.  

Calculating potential net gains for ACAZF depends on how many shares are bought. A $1,000.00 budget to buy shares at ACAZF's last $15.69 closing price would let us purchase 64 shares. 

Those 64 shares will be hit with a broker fee of about $5 at purchase and another $5 at sale (for a total of $10 to get any gains). Each share then has a brokerage cost of about $0.16.

Subtracting the $0.16 brokerage cost from the estimated $2.83 gross gain shows a net gain to 2019 of $2.67

X 64 shares 

= $170.88

or about a 17% net on our $1,004.16 investment.

Therefore, Acadian Timber Corp. (whose ticker symbol is ACAZF), shows a possible 17% gain by my simple year over year calculation and included in the take is a 5.5% annual dividend yield.

These forward-looking numbers are conjecture based on past year performance. The actual results remain to be seen. They could turn out to move lower. More study is required for you to determine if Acadian Timber Corp is worth your time and money.