Current Report: INDUS Holding On Track To Grow 14% Next Year

INDUS Holding AG targets a 14% total return next year, driven by a solid 4.99% dividend yield.

Source: DepositPhotos

The company was founded in 1989 and is based in Bergisch Gladbach, Germany.

INDUS Holding AG (INDHF) is a private equity firm specializing in growth capital mergers and acquisitions and corporate spin-offs.  

The firm seeks to take a majority stake in its portfolio companies initially and build it up to 100 percent. It prefers to acquire mainly owner-managed companies. 

Three key data points gauge INDHF (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.

INDHF Price

UNDUS’s single share price rose $6.20 (or about 25.8%) from $24.00 to $30.20 in the past year, per Friday’s closing market report.

No analysts cover the stock. However, the average of the past three-year price progression shows an average annual gain of about $2.73. Which I’ll use as an annual return, after I discuss INDHF dividends.  

INDHF Dividends

INDUS Holding has paid variable Annual dividends since July 2002. The most recent Annual dividend of $1.508 was paid June 9 (to shareholders of record June 5th, yielding 4.99% annually (per Friday’s closing market report)

INDHF Returns

Putting it all together, as of August 14th, a possible gross gain of $4.24 was projected. The $2.73 per share average annual gain was added to the $1.508 forward-looking annual dividend to make that $4.24 gross gain.

A little over $1000 invested in UNDUS Holding AG at Friday’s $30.20 closing share price would buy 33 shares, which multiply the $4.24 gross gain to $140.40 for the coming year, or 14.04%.

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.

INDHF’s projected annual dividend from $1K invested is $65.00, and that annual dividend proves to be just about 7.67 times more than the recent $8.47 single-share price.

The exact track of INDHF’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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