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 ninth 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 financial services sector stock candidates vying to be that ninth selection and first financial member of the Vista portfolio.
My subject today is a mid-cap diversified insurance company, named Old Republic International Corp. Its trading ticker symbol is ORI. This is my first report on Old Republic for this Vista portfolio but I reported on it and selected it for Volio my fifth portfolio., as the eighth selection in September 2019.
Old Republic International Corp offers a diverse range of specialized insurance products to individuals and institutions.
The firm's property-casualty business, which accounted for more than half of premium in 2012, and almost 80% of pretax operating income, offers commercial liability products for risks that include workers' compensation, autos, and general liability.
The title insurance business composes most of the remaining premium, with a minor assist from a tiny life insurance presence.
A Republic Financial Indemnity Group Run-off Business segment offers private mortgage insurance coverage that protects mortgage lenders and investors from default-related losses on residential mortgage loans made primarily to homebuyers.
Old Republic International Corporation is headquartered in Chicago, Illinois.
I use three key data points to gauge dividend equities or funds like Old Republic International Corp:
(1) Price
(2) Dividends
(3) Returns
Those three basic keys best tell whether a company has made, is making, and will make money.
ORI Price
Old Republic's price per share closed at $16.53 yesterday. A year ago its price was $22.58. Price fell $6.05 or about 268% last year.
If Old Republic's stock trades in the range of $12 to $22 this next year, its recent $16.53 price might rise by $3.47 to reach $20.00 by November 5, 2021.
ORI Dividends
Old Republic's most recently declared quarterly dividend was $0.21 paid September 15th. Dividends are estimated to total $0.84 per share annually and yield 5.08% at yesterday's $16.53 closing price.
ORI Gains?
Adding the $0.84 annual anticipated dividend to my $3.47 optimistic estimate of Old Republic's price upside shows a $4.31 potential gross gain, per share, to be reduced by any costs to trade the shares.
Put little under $1,000.00 today in Old Republic International Corp at $16.53 and we would buy 60 shares of ORI stock.
A $10 broker fee (if any) paid half at purchase and half at sale could cost us about $0.17 per share.
Subtract that $0.17 brokerage cost from my estimated $4.31 gross gain per share results in a net gain of $4.14 X 60 shares = $248.40 for a 24.9% net gain on a $991.80 investment.
So it goes that Old Republic International Corp shows a possible 24.9% net gain including a 5.08% dividend yield. It could be more, it could be less.
All of the estimates above are speculation based on the past history of Old Republic International Corp. Only time and money invested in this stock will determine its worth.
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