Daily Stock Analysis: Douglas Dynamics

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 eighth stock this coming 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'll review the fifth of five industrial sector stock candidates vying to be that eighth selection and second industrial member of the Vista portfolio.

My subject today is a small cap auto parts company, Douglas Dynamics Inc. Its trading ticker symbol is PLOW. This is my first report on Douglas Dynamics Inc for this Vista and any of my dog of the week portfolios. 

• Douglas Dynamics Inc is a manufacturer and upfitter of commercial vehicle attachments and equipment. 
• The product line includes snow plows, sand and salt spreaders for light trucks, and turf-care equipment. The products are sold under the Blizzard, Fisher, Snowex, Western, Turfex, and Sweepex brands. 
• The clients include professional snowplowers who are contracted to remove snow and ice from commercial, municipal, and residential areas. The majority of Douglas Dynamics' operations are focused in the snow-belt regions in North America.

Douglas Dynamics, Inc. was founded in 1948 and is headquartered in Milwaukee, Wisconsin.

I use three key data points to gauge dividend equities or funds like Douglas Dynamics Inc. (PLOW):

(1) Price

(2) Dividends

(3) Returns

Those three basic keys best tell whether a company has made, is making, and will make money. 

PLOW Price

Douglas Dynamics' price per share closed at $34.79 yesterday. A year ago its price was $47.46. Price fell $12.67 or over 26.6% last year.

If Douglas Dynamics' stock trades in the range of $26 to $46 this next year, its recent $34.79 price might rise by $4.21 to reach $39.00 by October 30, 2021. 

PLOW Dividends

Douglas Dynamics' most recently declared quarterly dividend was $0.28 paid September 30th. Dividends are estimated to total $1.12 per share annually and yield 3.22% at yesterday's $34.79 closing price.

PLOW Gains?

Adding the $1.12 annual anticipated dividend to my $4.21 optimistic estimate of Douglas Dynamics' price upside shows a $5.33 potential gross gain, per share, to be reduced by any costs to trade the shares.  

Put little over $1,000.00 today in Douglas Dynamics Inc. at $34.79 and we would buy 29 shares of PLOW stock.

A $10 broker fee paid half at purchase and half at the sale would cost us $0.34 per share.

Subtract that $0.34 brokerage cost from my estimated $5.33 gross gain per share results in a net gain of $4.99 X 29 shares = $144.71 for a 14.45% net gain on a $1,008.91 investment.

So it goes that Douglas Dynamics Inc. (PLOW) shows a possible 14.45% net gain including a 3.22% dividend yield. It could be more, it could be less.  

All of the estimates above are speculation based on the past history of Douglas Dynamics Inc. (PLOW). Only time and money invested in this stock will determine its worth.