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 third of five consumer cyclical sector stocks this week striving to join my Volio folio. This could be my thirty-third pick for Volio!
That consumer cyclical sector includes twenty-eight industries ranging from Advertising Agencies to Apparel, Autos, Broadcasting, Department Stores, Gambling, Leisure, Lodging, Packaging, Personal Services, Shoes, Restaurants, Rubber, Plastics, Textiles, and all such consumer aimed enterprises.
My subject today is an apparel manufacturing company named Superior Group Of Companies Inc. Their trading ticker symbol is SGC. This is my third ever report on Superior Group Of Companies Inc. Most recently I discussed this stock on January 16th, for this Volio list. Time for another look...
Superior Group Of Companies Inc designs, manufactures and distributes uniforms to major domestic retailers, foodservice chains, transportation, and other service industries.
It provides customer-specific uniform eStores, custom Image apparel, corporate identity apparel, career apparel, and accessories including remote staffing solution and call center operations for the medical and health fields also for industrial, commercial, and leisure.
The three operating business segments are Uniforms and Related Product, Remote Staffing Solutions, and Promotional Products. The company markets its products under the brand names of Fashion Seal Healthcare, HPI Direct, Superior I.D., and UniVogue. Most of its revenue comes from Uniforms business.
The company was formerly known as Superior Uniform Group, Inc. and changed its name to Superior Group of Companies, Inc. in May 2018.
Superior Group of Companies, Inc. was founded in 1920 and is headquartered in Seminole, Florida.
I use three key data points to gauge dividend equities or funds like Superior Group Of Companies 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.
SGC Price
Superior's price per share closed at $7.90 yesterday. A year ago their price was $17.78. Market price has dropped $9.88 or over 55.5%.
Assuming Superior's stock trades in the range of $4 to $12 this next year, its recent $7.90 price might rise by $2.10 to reach $10.00 by April 15, 2021.
SGC Dividends
Superior's most recent declared quarterly dividend was $0.10 paid February 26th. That $0.10 Q dividend shows an annual payout of $0.40 to yield 5.06% at yesterday's $7.90 share price.
SGC Gains?
Adding the $0.40 annual estimated dividend to my $2.10 estimate of Superior Group Of Companies Inc price upside shows a $2.50 potential gross gain, per share, reduced by any costs to trade those shares.
Put a little over $1,000.00 today in Superior Group Of Companies Inc at the $7.90 share price, buys 127 SGC shares.
A $10 broker fee paid half at purchase and half at sale could cost about $0.08 per share.
Subtract that $0.08 brokerage cost from my estimated $2.50 gross gain per share results in a net gain of $2.42 X 127 shares = $307.34 or a 30.7% net gain on a $1,003.30 investment.
Therefore, Superior Group Of Companies Inc, whose trading ticker symbol is SGC shows a possible 30.7% net gain including a 5.06% 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 Superior Group Of Companies Inc is worth the expenditure.
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