Current Report: Skanska May Gain Near 22% This Year

The company was founded in 1887 and is headquartered in Stockholm, Sweden.

Skanska AB with the stock ticker symbol (SKBSY), provides construction and project development.

It operates through four segments: Construction, Residential Development, Commercial Property Development, and Investment Properties.

Three key data points gauge SKBSY (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.

SKBSY Price

Skanska’s single share price rose $2.55 (or about 10.9%) from $23.42 to $25.97 in the past year, per Wednesday’s opening market report.

No analysts cover the stock. However, the past three year price history shows an average $4.21 annual price gain which I’ll use for its annual return; after I discuss dividends.  

SKBSY Dividends

Skanska has paid annual dividends since May, 2011 but delayed one Covid year payout in 2020. The recent A dividend of $1.50 was paid April 23rd (to shareholders on record as of April 2nd) and that annual payout yields  5.77% (per Wednesday’s opening market report.}

SKBSY Returns

Putting it all together, as of June 24th, a possible gross gain of $5.70 was projected. The $4.20 per share historic annual gain was added to the $1.50 forward looking annual dividend to equal a $5.70 gross gain.

A little under $1000 invested in SKBSY at Wednesday’s $25.97 opening share price would buy 38.5 shares which multiply the $5.70 gross gain to $219.48 for the coming year, or about 21.95%.

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.

SKBSY’s projected annual dividend from $1K invested is $57.70. So Skanska AB shows a dividend from $1,000 invested over 2.2 times greater than its $25.97 single share price.

The exact track of SKBSY’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.