Daily Stock Analysis: Harvey Norman Holdings

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Harvey Norman Holdings Ltd is known by the trading ticker symbol, HNORY. It is listed in the consumer cyclical sector as a department stores company. This is my first ever report on Harvey Norman Holdings Ltd for Vista or any of my other five stock portfolios.

Harvey Norman Holdings Limited is the franchisor of Harvey Norman, a leading Australia-based retailer that sells goods from the electrical, computer, furniture, entertainment, and bedding sectors. The majority of earnings are generated in Australia, with international divisions gradually growing in significance.

The company has 195 franchised complexes under the Harvey Norman, Domayne, and Joyce Mayne brands in Australia; and 96 company-operated stores under the Harvey Norman brand in New Zealand, Singapore, Malaysia, Slovenia, Croatia, Ireland, and Northern Ireland. 

It is also involved in property investment and media placement activities, as well as provides consumer finance and other commercial loans and advances. The company was founded in 1982 and is based in Homebush West, Australia.

Three key data points gauge dividend equities or funds like Harvey Norman Holdings Ltd:

(1) Price

(2) Dividends

(3) Returns

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

HNORY Price

Harvey Norman's price per share was $21.41 as of yesterday's market close. One year ago its price was $13.86. So HNORY share price has increased just under 54.5% in the past year. 

If Harvey Norman's stock trades in the range of $10.00 to $25.00 this next year, its recent $21.41 price might rise by $0.99 to reach $22.40 by August 24, 2022. My estimate is $0.03 under the average annual price upside for the past 6 years.

HNORY Dividends

Harvey Norman's most recent regular semi-annual dividend payout of  $0.77 was paid on June 14. Their annual estimated forward-looking payout of $1.41 yields 6.57% based on yesterday's $21.41 closing price. HNORY has paid variable semi-annual dividends for 5 years.

HNORY Returns

Adding the $1.41 annual HNORY forward-looking dividend to my $0.99 price upside estimate shows a $2.40 potential gross gain, per share, to be reduced by any costs to trade HNORY shares.  

At yesterday's $21.41 price per share, a little over $1000 would buy 47 shares.

A $10 broker fee (if charged) would be paid half at purchase and half at a sale and might cost us about $0.21 per share.

Subtract that maybe $0.21 brokerage cost from my estimated $2.40 gross gain per share results in a net gain of $2.19 X 47 shares = $102.93 for a 10.29% net gain on a $1,006.27 investment.

So it is that Harvey Norman Holdings LTD Ltd shows a possible 10.29% net gain including a 6.57% forward estimated dividend yield. 

Over the next year at this time, a $1000 investment in Harvey Norman Holdings Ltd could generate $65.70 in cash dividends alone. And a single share bought at yesterday's closing price was $21.41! Thus, HNORY share price is now over three times under the dividend income from $1K invested. So, according to my dogcatcher ideal, now is the time to pick up HNORY  shares. The dividend from $1k invested is three times the single share price.  Consider yourself alerted.  

All of the estimates above are speculation based on the past history of Harvey Norman Holdings Ltd. Only time and money invested in this stock will determine its market value.