A portfolio of stocks I've been building since September 3 is named Volio Folio. 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 materials stocks striving to be picked to join my Volio folio. This could be the twelfth pick for Volio!
That materials sector has thirteen industries all related to mining, making, and delivering essential commodities. They are: agricultural inputs; aluminum; building materials; chemicals; coal; copper; industrial metals; gold; paper; silver; specialty chemicals; steel.
My subject today is a mid-cap Chemical company named, Methanex Corp Their trading ticker symbol is MEOH. This is my first report on Methanex Corp (MEOH).
Methanex Corp manufactures and sells methanol. Methanex's customers use methanol as a feedstock to produce end-products including adhesives, foams, solvents, and windshield washer fluids.
The firm also sells its products to the oil refining industry, where the methanol is blended with gasoline to produce a high-octane fuel or blended as a component of biodiesel. Methanex distributes its products through a global supply chain that includes the operation of port terminals, tankers, barges, rail cars, trucks, and pipelines.
Europe generates the most revenue of any geographical segment.
The company was founded in 1968 and is headquartered in Vancouver, Canada.
I use three key data points to gauge dividend-paying equities or funds like Methanex 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.
MEOH Price
Methanex's price per share closed at $37.38 yesterday. A year ago its price was $56.69. So, in the past year, its price dropped $19.31 or just over 34%.
Assuming Methanex's stock trades in a range of $30 to $50 this next year, it's recent $37.38 price could rise by $5.00 and might hit $42.38 by mid-November, 2020, assuming upward price momentum returns.
MEOH Dividends
Methanex's latest declared quarterly dividend was $0.36, paid September 30th.
That $0.36 Q dividend equates to $1.44 annually and yields 3.85% based on yesterday's $37.38 closing price.
MEOH Gains?
Adding the $1.44 annual estimated dividend to my $5.00 estimate of Methanex's price upside shows an $6.44 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 Methanex Corp at its recent $37.38 price, we'd buy 27 shares of MEOH.
A $10 broker fee paid half at purchase and half at sale could cost us about $0.37 per share.
Subtract that $0.37 brokerage cost from the estimated $6.44 gross estimated gain per share leaves a net gain of $6.07 X 27 shares = $164.16 or a 16.4 % net gain on a $1,09.26 investment.
Therefore, Methanex Corp, whose trading ticker symbol is MEOH shows a possible 16.4% net gain including a 3.85% 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 Methanex Corp is worth your time and money.
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