Daily Stock Analysis: Omnicom Group

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Omnicom Group Inc has the ticker symbol OMC and is a member of the Communication Services sector as an advertising agency company. This is my fourth report on Omnicom Group Inc for my Vista Portfolio. My most recent past report was on January 26th.

Omnicom is the world's second-largest advertising holding company, based on annual revenue. 

The American firm's services, which include traditional and digital advertising and public relations, are provided worldwide, with over 85% of its revenue coming from more developed regions such as North America and Europe.

The company was incorporated in 1944 and is based in New York, New York.

Three key data points gauge dividend equities or funds like Omnicom Group Inc:

(1) Price

(2) Dividends

(3) Returns

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

OMC Price

Omnicom Group Inc's price per share closed at $75.50 yesterday. One year ago its price was $49.51. Price per share has increased 52.5% from the midst of the COVID market slump. 

Should Omnicom Group Inc's stock trade in the range of $50 to $80 this year, its recent $75.50 price might fall by $5.50 to reach $70.00 by March 23, 2022. My estimate is $4.00 below that of thirteen analysts tracking OMC.

OMC Dividends

Omnicom Group Inc's most recently declared quarterly dividend was $0.70 payable on April 8th. Dividends are estimated to total $2.80 per share annually and yield 3.71% at yesterday's $75.50 closing price. OMC has paid annually increasing dividends for twelve years.

OMC Returns

Adding the $2.80 annual OMC anticipated dividend to my negative $5.50 price estimate shows a $2.70 potential gross loss, per share, to be further reduced by any costs to trade the shares.  

Put little under $1,000.00 today in Omnicom Group Inc at $75.50 per share and we'd buy 13 shares of OMC stock.

A $10 broker fee (if charged) would be paid half at purchase and half at a sale and might cost us about $0.77 per share.

Add that maybe $0.77 brokerage cost to my estimated $2.70 gross loss per share results in a net loss of $3.47 X 13 shares = $45.11 for a 4.5% net loss on a $981.50 investment.

Omnicom Group Inc shows a possible 4.5% net loss including a 3.71% dividend yield. 

Over the next year at this time, a $1000 investment in OMC could generate $37.10 in cash dividends. And a single share bought at yesterday's closing price was about $76! So, if OMC is your kind of communication services investment, their price is far greater than the annual dividend income from $1,000 invested. This suggests that you wait for OMC's price to drop below $50 before adding these shares to your portfolio.

All of the estimates above are speculation based on the past history of Omnicom Group Inc. Only time and money invested in this stock will determine its worth.