The portfolio of stocks I started building on September 8, at a one stock per week pace for the next year, is named Vista. I will select its twentieth stock this weekend. Vista is the sixth portfolio I've built (at a one dividend dog per-week pace) since 2014. Six portfolios = VI for Vista!
Vista is planned to Look Ahead for Outstanding, Proven, Dividend Winners. (Like Aristocrats)
Today we look at a mid-cap specialty chemical company named Cabot Corp. Its trading ticker symbol is CBT. This is my first report on Cabot Corp for Vista. However, I have reviewed it before for a couple of previous Portfolios.
Cabot Corp manufactures and sells a variety of chemicals, materials, and chemical-based products.
The company organizes itself into three segments based on the product type. The reinforcement materials segment, which generates more revenue than any other segment, sells rubber-grade carbon black products used in hoses and belts in automobiles.
The performance chemicals segment sells ink-jet colorants and metal oxides used in the automotive and construction industries.
The purification solutions segment sells carbon-based products used to purify the air, water, and food and beverages.
The company sells its products through distributors and sales representatives in the Americas, Europe, the Middle East, Africa, and the Asia Pacific.
Cabot Corporation was founded in 1882 and is headquartered in Boston, Massachusetts.
I use three key data points to gauge dividend equities or funds like Cabot Corp:
(1) Price
(2) Dividends
(3) Returns
Those three basic keys best tell whether a company has made, is making, and will make money.
CBT Price
Cabot's price per share closed at $47.89 yesterday. A year ago its price was $44.33. Price increased $3.56 or about 8% last year.
If Cabot's stock trades in the range of $20 to $55 this next year, its recent $47.89 price might rise by $2.11 to reach $50.00 by January 21, 2022.
CBT Dividends
Cabot's most recently declared quarterly dividend was $0.35 payable on March 12th. Dividends are estimated to total $1.40 per share annually and yield 2.92% at yesterday's $47.89 closing price.
CBT Gains?
Adding the $1.40 annual Cabot Corp anticipated dividend to my $2.11 optimistic price upside shows a $3.51 potential gross gain, per share, to be reduced by any costs to trade the shares.
Put little over $1,000.00 today in Cabot Corp at $47.89 per share and we'd buy 21 shares of CBT stock.
A $10 broker fee (if any) paid half at purchase and half at sale could cost us $0.48 per share.
Subtract that maybe $0.48 brokerage cost from my estimated $3.51 gross gain per share results in a net gain of $3.03 X 21 shares = $63.63 for a 6.35% net gain on a $1,005.69 investment.
Cabot Corp shows a possible 6.35% net gain including a 2.92% dividend yield. It could be more, it could be less.
All of the estimates above are speculation based on the past history of Cabot Corp. Only time and money invested in this stock will determine its worth.
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