That portfolio of stocks I've been building since September 3, 2019, named Volio will, by August 28, 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 fifth of five technology sector stocks primed to join Volio as the ninth of nine representing the sector. One of the stocks I discuss this week could become the fifty-first overall selection for Volio!
My subject today is a mid-cap computer hardware company named, NetApp inc. Its trading ticker is NTAP. This is my second report on NetApp Inc. (NTAP) for this portfolio. The last one was on April 28.
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 multi-cloud environments. The 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 postproduction, and telecommunications through a direct sales force and an ecosystem of partners.
NetApp has a strategic partnership with Fujitsu for data management infrastructure. 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. (NTAP):
(1) Price
(2) Dividends
(3) Returns
Those three basic keys best tell whether a company has made, is making, and will make money.
NTAP Price
NetApp's price per share closed at $41.42 yesterday. A year ago its price was $46.89. Price fell $5.47 or about 12% last year.
Assuming NetApp's stock trades in the range of $35 to $50 this next year, its recent $41.42 price might rise by $3.58 to reach $45.00 by August 21, 2021.
NTAP Dividends
NetApp's most recently declared quarterly dividend was $0.48, paid July 29th. That Q dividend equates to $1.92annually and yields 4.64% at yesterday's $41.42 share price.
NTAP Gains?
Adding the $1.92 annual estimated dividend to my $3.58 optimistic estimate of NetApp's price upside shows a $5.40 potential gross gain, per share, to be reduced by any costs to trade the shares.
If we put little under $1,000.00 today inThe NetApp Inc. at $41.42, we would buy 24 shares of (NTAP) stock.
A $10 broker fee paid half at purchase and half at sale could cost us about $0.42 per share.
Subtract that $0.43 brokerage cost from my estimated $5.40 gross gain per share results in a net gain of $4.97 X 24 shares = $119.28 for an 11.93% net gain on a 994.08 investment.
Thus, NetApp Inc. (NTAP)shows a possible 11.93% net gain including a 4.64% 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. (NTAP) is worth it.
Comments
Log in or sign up to join the conversation.