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 third of five communication services sector stocks striving to constitute my Volio folio. This could be the fourteenth pick for Volio!
Now the communications services sector includes seven industries all related to delivering messages to and from us. Communication services industries are: advertising agencies; broadcasting; electronic gaming and multimedia; entertainment; internet content and information; publishing; telecom services.
My subject today is a small-cap broadcasting company named, Entravision Communications Corp. Their trading ticker symbol is EVC. This is my first-ever report on EVC.
Entravision Communications Corp is a global media company. Its operations encompass integrated marketing and media solutions, comprised of television, radio and digital properties and data analytics services. The company owns and operates Spanish-language radio stations in the United States. It owns and operates around 49 radio stations in 16 U.S. markets. The radio stations consist of approx 38 FM and 11 AM stations located in Arizona, California, Colorado, Florida, Nevada, New Mexico, and Texas. It also provides digital advertising solutions that allow advertisers to reach primarily online Hispanic audiences worldwide. The company generates revenue primarily from sales of national and local advertising time on television stations, radio stations, and digital media platforms.
Entravision Communications Corporation was founded in 1996 and is headquartered in Santa Monica, California.
I use three key data points to gauge dividend-paying equities or funds like Entravision Communications 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.
EVC Price
Entravision's price per share closed at $2.74 yesterday. A year ago its price was $3.02. So, in the past year, its price fell $0.28, or 9.2%.
Assuming Entravision's stock trades in a range of $2 to $4 this next year, it's recent $2.74 price could rise by $0.26 to reach $3.00 by early-December, 2020, assuming upward price momentum returns.
EVC Dividends
Entravision's latest declared quarterly dividend was $0.05 payable December 31st.
That $0.05 Q dividend equates to $0.20 annually and yields 7.3% based on yesterday's $2.74 closing price.
EVC Gains?
Adding the $0.20 annual estimated dividend to my $0.26 estimate of Entravision's price upside shows an $0.46 potential gross gain, per share, which will be reduced by any costs to trade these shares.
Say, for costs, we put a little over $1,000.00 today into Entravision Communications Corp. at its recent $2.74 price, we'd buy 365 shares of EVC.
A $10 broker fee paid half at purchase and half at sale could cost us about $0.03 per share.
Subtract that $0.03 brokerage cost from the estimated $0.46 gross estimated gain per share leaves a net gain of $0.43 X 365 shares = $156.95 or a 15.67% net gain on a $1,000.10 investment.
Therefore, Entravision Communications Corp, whose trading ticker symbol is EVC shows a possible 15.67% net gain including a 7.3% 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 Entravision Communications Corp is worth your time and money.
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