Daily Stock Pick: Corning

A portfolio of stocks I've been building since September 3, 2019, named Volio, 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 first of five industrials sector stocks poised to join my Volio folio this week. One could be my forty-second pick for Volio!

That industrials sector includes 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 large-cap electronic components outfit named, Corning Inc. Its trading ticker symbol is GLW. This is my fourth report this year on Corning Inc for this Volio portfolio. My previous reports on Corning were aired on February 13, March 31, and April 28.

Corning is a leading supplier of advanced glass substrates used in LCDs, optical fiber, ceramic substrates, and a variety of other materials science products.

Corning operates in five segments: display technologies, optical communications, environmental technologies, specialty materials, and life sciences. Although headquartered in New York, the company’s operations and geographic reach span the globe, with most of Corning’s revenue generated in Asia-Pacific.

Corning Incorporated has a strategic collaboration with Intel Corporation to accelerate the availability of 5G in buildings.

The company was formerly known as Corning Glass Works and changed its name to Corning Incorporated in April 1989.

Corning Incorporated was founded in 1851 and is headquartered in Corning, New York.

I use three key data points to gauge dividend equities or funds like Corning Inc:

(1) Price

(2) Dividends

(3) Returns

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

GLW Price

Corning's price per share closed at $26.93 Friday. A year ago their price was $30.91. Price dropped $4.02 or about 13% last year.

Assuming Corning's stock trades in the range of $10 to $35 this next year, its recent $26.93 price might rise by $3.07 to reach $30.00 by June 15, 2021.

GLW Dividends

Corning's most recent declared quarterly dividend was $0.22 payable, June 30th. That $0.22 Q dividend equates to $0.88 annually and yields 3.27% at Friday's $26.93 share price.

GLW Gains?

Adding the $0.88 annual estimated dividend to my $3.07 optimistic estimate of Corning Inc's price upside shows a $3.95 potential gross gain, per share, to be reduced by any costs to trade the shares.

If we put little under $1,000.00 today in Corning Inc shares at their $26.93 price, we'd buy 37 shares of GLW stock.

A $10 broker fee paid half at purchase and half at sale could cost us about $0.27 per share.

Subtract that $0.27 brokerage cost from my estimated $3.95 gross gain per share results in a net gain of $3.68 X 37 shares = $136.16 for a 13.6% net gain on a $996.41 investment.

Corning Inc shows a possible 13.6% net gain including a 3.27% dividend yield. It could be more, it could be less.

The above speculation is based on past performance and supposition. Only time and money invested will tell if Corning Inc is worth it.