Current Report: Build-A-Bear Workshop On Track To Grow 14.5% By 2027

Build-A-Bear Workshop is projected to deliver a 14.5% annual return, supported by a 2.67% dividend yield and historical gains.

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Source: DepositPhotos

The company was founded in 1997 and is headquartered in St. Louis, MO.

Build-A-Bear Workshop Inc (BBW) provides interactive retail-entertainment experiences through three divisions: Direct-To-Consumer (DTC), Commercial, and International Franchising.

Three key data points gauge BBW (or any dividend-paying entity):

(1) Price 

(2) Dividends

(3) Returns

Those three keys also indicate if any company has made, is making, and will make money.

BBW Price

Build-A-Bear’s single share price dropped $16.98 (or about 33%) from $51.40 to $34.42 in the past year, per Friday’s closing market report.

Four analysts cover the stock, and the median of the other one-year price targets projected a gain of $26.83 for the coming year.

However, the BBW past three-year price history shows an average $4.08 annual price gain, which I’ll use for its annual return after I discuss dividends.  

BBW Dividends

Build-A-Bear has paid quarterly dividends since April, 2024. The latest Q amount of  $0.23 was paid July 9th (to shareholders on record as of June 25th), yielding 2.67% annually (per Friday’s closing market report)

BBW Returns

Putting it all together, as of July 10th, a possible gross gain of $5.00 was projected. The $4.08 per share historic annual gain was added to the $0.92 forward-looking annual dividend to equal a $5.00 gross gain.

A little under $1000 invested in BBW at Wednesday’s $34.42 opening share price would buy 29 shares, which multiply the $5.00 gross gain to $145.00 for the coming year, or about 14.5%.

My dividend dogcatcher rule is to only buy initial shares of a dividend stock that pay an annual dividend (from $1000 invested) that is greater than the cost of one share.

BBWs projected annual dividend from $1K invested is $26.70. So BBW shows an annual dividend from $1,000 invested at a $34.42 price is less than its recent single share price.

Wait for BBW shares to drop to $30.30 as a buy point for dividend returns. 

The exact track of BBW’s future share price and dividend will entirely be determined by market action and company finances.  

Remember, the best way to track stock performance and dividend payments is through direct ownership of company shares.

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