A new portfolio of stocks I started building September 8, at a one stock per week pace for the next year, is named Vista. I will select its fourth 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 fourth of five energy sector stock candidates vying to be that fourth selection for the Vista portfolio.
My subject today is a small-cap thermal coal miner named, NACCO Industries Inc. Its trading ticker symbol is NC. This is my first ever report on NACCO Industries Inc for any of my six dog of the week portfolios.
NACCO Industries Inc is a holding company that operates primarily in the mining industry.
The company operates surface mines that supply coal primarily to power generation companies under long-term contracts and provide other value-added services to natural resource companies.
It mines coal in North Dakota, Texas, Mississippi, Louisiana, and on the Navajo Nation in New Mexico for power generation.
In addition, the company promotes the development of its oil, gas, and coal reserves that generates income primarily from royalty-based lease payments from third parties; and offers surface and mineral acquisition, and lease maintenance services.
NACCO Industries, Inc. was founded in 1913 and is headquartered in Cleveland, Ohio.
I use three key data points to gauge dividend equities or funds like NACCO Industries Inc:
(1) Price
(2) Dividends
(3) Returns
Those three basic keys best tell whether a company has made, is making, and will make money.
NC Price
NACCO's price per share closed at $18.20 yesterday. A year ago its price was $64.21. Price fell $46.01 or just over 71.66% last year.
If NACCO's stock trades in the range of $15 to $25 this next year, its recent $18.20 price might rise by $1.80 to reach $20.00 by October 1, 2021.
NC Dividends
NACCO's most recently declared quarterly dividend was $.1925 paid September 15th. It will total $0.77 annually and yield 4.29% at yesterday's $18.20 closing price.
NC Gains?
Adding the $0.77 annual anticipated dividend to my $1.80 optimistic estimate of NC's price upside shows a $2.57 potential gross gain, per share, to be reduced by any costs to trade the shares.
If we put little over $1,000.00 today in NACCO Industries Inc at $18.20, we would buy 55 shares of NC stock.
A $10 broker fee paid half at purchase and half at sale could cost us about $0.18 per share.
Subtract that $0.18 brokerage cost from my estimated $2.57 gross gain per share results in a net gain of $2.39 X 55 shares = $131.45 for a 13.125% net gain on a $1,001.00 investment.
So it goes that NACCO Industries Inc shows a possible 13.125% net gain including a 4.23% dividend yield. It could be more, it could be less.
All of the estimates above are speculation based on the past history of NACCO Industries Inc. Only time and money invested in this stock will determine its worth.
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