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 technology sector stocks striving to join my Volio folio this week. This could be my thirty-fifth pick for Volio!
That technology 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 computer hardware company named, NetApp Inc. Its trading ticker symbol is NTAP. This is my first ever report on NerApp Inc.
NetApp is a leading provider of enterprise data management and storage solutions. The company's three operating business units are products, software maintenance, and hardware maintenance.
NetApp transitioned from a data center storage firm to a company with software data management solutions for multicloud environments. The California-headquartered company sells globally and has approximately 10,000 employees.
It serves the energy, financial services, government, high technology, Internet, life sciences, healthcare services, manufacturing, media, entertainment, animation, video post-production, and telecommunications through a direct sales force and an ecosystem of partners.
NetApp, Inc. was founded in 1992 and is headquartered in Sunnyvale, California.
I use three key data points to gauge dividend equities or funds like NetApp, Inc:
(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.
NTAP Price
NetApp's price per share closed at $43.06 Friday. A year ago their price was $71.90. Market price dropped $28.84 or just over 40%.
Assuming NetApp's stock trades in the range of $30 to $50 this next year, its recent $43.06 price might rise by $4.94 to reach $48.00 by April 27, 2021.
NTAP Dividends
NetApp's most recent declared quarterly dividend was $0.48 paid April 22nd. That $0.48 Q dividend equates to $1.92 annually and yields 4.46%.
NTAP Gains?
Adding the $1.92 annual estimated dividend to my $4.94 optimistic estimate of NetApp's price upside shows a $6.86 potential gross gain, per share, reduced by any costs to trade those shares.
A little under $1,000.00 today put into NetApp Inc shares at their $43.06 price, buys 23 shares of NTAP.
A $10 broker fee paid half at purchase and half at sale could cost about $0.43 per share.
Subtract that $0.43 brokerage cost from my estimated $6.86 gross gain per share results in a net gain of $6.43 X 23 shares = $147.89 or a 14.79% net gain on a $990.38 investment.
Therefore, NetApp Inc, whose trading ticker symbol is NTAP shows a possible 14.79% net gain including a 4.46% 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 NetApp Inc is worth the expenditure.
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