This week, I'm looking for the fifth industrials representative of eight for my Ivy portfolio.
That industrials sector includes twenty-three industries all related to designing, fabricating and servicing stuff we want and use. The industrials industries range from aerospace and defense to waste management with all the transportation, business services, and equipment required in between.
Today I'm reviewing a Nano-cap security and protection services company named George Risk Industries Inc. It's trading ticker is RSKIA.
- George Risk Industries Inc manufactures security products. The company is engaged in the design, manufacture, and sale of various products which include magnetic reed switches as well as keyboards, keypads, pushbutton and keyboard switches, proximity sensors and engraved keycaps. These security products are used in alarm system installations in the residential, commercial, industrial, and government sectors.
George Risk Industries, Inc. sells its products to security alarm distributors, alarm installers, original equipment manufacturers, and distributors of off-the-shelf keyboards of proprietary design worldwide.
The company was incorporated in 1967 and is headquartered in Kimball, Nebraska.
I use three key data points to gauge the value of any dividend equity-like George Risk Industries Inc:
(1) Price
(2) Dividends
(3) Returns
Besides those three, several other keys will finally unlock an equity or fund in which to invest.
Those first three primary keys, however, best tell whether a company has made, is making, and will make money.
RSKIA Price
Risk's price per share closed at $8.40 yesterday. A year ago its price was $8.50. Price fell $0.10 or a little over 1% in the past year.
Assuming Risk's stock trades in the range of $8.00 to $9.00 this year, Risk's recent $8.40 price could rise by $0.10 and go to $8.50 by early-June, 2020.
RSKIA Dividends
Risk's most recent annual dividend was $0.38 declared September 27th and payable October 31st.
That $0.38 A payout produced a yield of 4.52% based on yesterday's $8.40 closing price.
Gains For RSKIA?
Adding the $0.38 annual estimated dividend to my $0.10 estimate of
George Risk Industries price upside shows a $0.48 potential gross annual gain, per share, which will be reduced by costs to trade those shares.
Say we pay a little under $1,000.00 today at the $8.40 recent stock price would buy us 119 of George Risk Industries Inc shares.
A $10 broker fee paid half at purchase and half at sale will cost us $0.08 per share.
Subtract that $0.08 brokerage cost from the estimated $0.48 gross annual gain leaves a net gain of $0.40 X 119 shares = $47.60 or a 4.76% net gain on a $999.60 investment.
Therefore, George Risk Industries Inc whose trading ticker symbol is RSKIA, now shows a possible net gain of 4.76% including a 4.52% dividend yield.
No brokers track George Risk Industries Inc stock:
I get no argument from the pros then.
Therefore, you can look at George Risk Industries Inc and see it has made money, is making money, and could net a 4.76% gain including a 4.52% 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 determine if George Risk Industries Inc is worth your time and money.
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