A portfolio of stocks I've been building since September 3 is named Volio. 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 Consumer cyclical sector stocks striving to join my Volio folio. This could be the twentieth pick for Volio!
That 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 a small-cap apparel manufacturing company named, Superior Group of Companies Inc. Their trading ticker symbol is SGC. This is my second report on SGC. I last reported on them back on September 18, 2019, for this same Voliio portfolio. Time for another look.
Superior Group Of Companies Inc is engaged in designing, manufacturing, and distributing service 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 fields.
The 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-paying 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 $14.03 yesterday. A year ago its price was $18.06. So, in the past year, its price dropped by $4.03, or just about 22.3%.
Assuming Superior's stock trades in the range of $12 to $20 this next year, its recent $14.03 price could rise by $3.97 to reach $18.00 by January 16, 2021, assuming upward price momentum continues.
SGC Dividends
Superior's latest declared quarterly dividend was $0.10 per share paid November 27th
That $0.10 Q dividend equates to $0.40 annually and yields 2.85% based on yesterday's $14.03 closing price.
SGC Gains?
Adding the $0.40 annual estimated dividend to my $3.97 estimate of Superior Group Of Companies Inc price upside shows a $4.37 potential gross gain, per share, which will be reduced by any costs to trade these shares.
As for costs, if we put a little under $1,000.00 today in Superior Group Of Companies Inc at its recent $14.03 price, would buy 71 shares of SGC.
A $10 broker fee paid half at purchase and half at sale could cost us about $0.14 per share.
Subtract that $0.14 brokerage cost from the estimated $4.37 gross estimated gain per share leaves a net gain of $4.23 X 71 shares = $300.33 or a 30% net gain on a $996.13 investment.
Therefore, Superior Group Of Companies Inc, whose trading ticker symbol SGC shows a possible 30% net gain including a 2.85% 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 Superior Group Of Companies Inc, is worth your time and money.
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