A portfolio of stocks I've been building since September 3 is named Volio. It will eventually hold 52 dividend dogs. Volio is the fifth portfolio I've built (at a one dividend dog per-week pace) since 2014. Five portfolios = V for Volio!
Today I'm reviewing the fourth of five technology sector stocks striving to join my Volio folio. This could be the sixteenth pick for Volio!
That technology sector has nineteen industries ranging from communication equipment, computers, consumer electronics, and contract manufacturing, to health, information technology, and services, to internet, scientific instruments, software, solar, and all such techno-marvels.
My subject today is a mid-cap electronic components firm, named, AVX Corp. Their trading ticker symbol is AVX. This is my third report on AVX. I reported on this company on July 16, 2018, and again on September 10th this year.
AVX Corp is a manufacturer and supplier of electronic components to original-equipment manufacturers, distributors, and electronic manufacturing service providers.
The firm operates in three segments: Electronic components, which sells ceramic and tantalum capacitors, film capacitors, and filters; Electronic Devices, which sells ceramic capacitors, sensor products, actuators, and connectors produced by Kyocera, a majority shareholder, and resold by AVX; and Interconnect, which sells Interconnect automotive, telecom, and memory connectors.
A majority of the firm's revenue is generated in Asia, and rest in the Americas and Europe.
It markets its products through its direct sales force and independent manufacturers' representatives to multi-national original equipment manufacturers, independent electronic component distributors, and electronic manufacturing service providers.
The company was founded in 1972 and is headquartered in Fountain Inn, South Carolina. AVX Corporation is a subsidiary of Kyocera Corporation.
I use three key data points to gauge dividend-paying equities or funds like AVX Corp:
(1) Price
(2) Dividends
(3) Returns
Besides those three, several other keys will finally unlock an equity or fund in which to invest, or not.
Those three basic keys, however, best tell whether a company has made, is making, and will make money.
AVX Price
AVX's price per share closed at $20.33 yesterday. A year ago its price was $15.46. So, in the past year, its price moved up $4.87, or just over 19%.
Assuming AVX's stock trades in the range of $14 to $28 this next year, it's recent $20.33 price could rise by $1.67 to reach $22.00 by mid-December, 2020, assuming upward price momentum kicks in.
AVX Dividends
AVX's latest declared quarterly dividend was $0.115 per share paid November 22nd.
That $0.115 Q dividend equates to $0.46 annually and yields 2.26% based on yesterday's $20.33 closing price.
AVX Gains?
Adding the $0.46 annual estimated dividend to my $1.67 optimistic estimate of AVX's price upside shows a $2.13 potential gross gain, per share, which will be reduced by any costs to trade these shares.
As for costs, if we put a little under $1,000.00 today in AVX Corp at its recent $20.33 price, would buy 49 shares of AVX.
A $10 broker fee paid half at purchase and half at sale could cost us about $0.20 per share.
Subtract that $0.20 brokerage cost from the estimated $2.13 gross estimated gain per share leaves a net gain of $1.93 X 49 shares = $94.59 or a 9.5% net gain on a $996.17 investment.
Therefore, AVX Corp, whose trading ticker symbol is AVX shows a possible 9.5% net gain including a 2.26% dividend yield. It could be more, it could be less.
The above speculation is based on past year performance. The actual results remain to be seen to learn if AVX Corp, is worth your time and money.
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