Daily Stock Pick: Weyco Group (WEYS)

I'm now looking for a third consumer cyclical sector representative for my new Ivy portfolio.

That cyclicals 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.

Today I'm reviewing a small-cap footwear and accessories company, named Weyco Group Inc Its trading ticker symbol is WEYS.

Weyco Group Inc is a US based company, engaged in the manufacture, design distribution of quality and innovative footwear for men, women, and children. It offers mid-priced leather dress shoes and casual footwear composed of man-made materials or leather.

The company operates through two segments, North American Wholesale, and North American Retail. It engages in the design and marketing footwear for men, women, and children under the Florsheim, Nunn Bush, Stacy Adams, BOGS, Rafters, and Umi brand names.

It is involved in the wholesale distribution of its products to footwear, department, and specialty stores primarily in the United States and Canada.

As of December 31, 2017, the company had 10 brick and mortar retail stores in the United States; and an Internet business. It also has licensing agreements with third parties, who sell its branded apparel, accessories, and specialty footwear in the United States, as well as its footwear in Mexico and certain markets internationally.

The company was formerly known as Weyenberg Shoe Manufacturing Company and changed its name to Weyco Group, Inc. in April 1990.

Weyco Group, Inc. was founded in 1896 and is based in Milwaukee, Wisconsin.

I use three key data points to gauge the value of any dividend equity like Weyco Group Inc:

(1) Price

(2) Dividends

(3) Returns

Besides those three, several other keys will finally unlock an equity or fund in which to invest.

Those first three primary keys, however, best tell whether a company has made, is making, and will make money.

WEYS Price

Weyco's price per share closed at $26.99 Yesterday. A year ago its price was $33.61. So price dropped $6.62 per share last year, or about 20%.

Assuming Weyco's stock trades in the range of $20 to $40 next year,  Weyco's recent $26.99 price could pick up by $1.01 and go to $28.00 by late-January, 2020.

WEYS Dividends

Weyco's most recent Quarterly dividend was $0.23 paid January 2nd.

That $0.23 quarterly payout equates to a  $0.92 annual payout and a yield of 3.4% at yesterday's $26.99 closing price.

Gains For WEYS?

Adding the $0.92 annual estimated dividend to my estimated  $1.01annual price estimate for Weyco Group Inc shows a $1.93 potential gross annual gain, per share, which will be reduced by costs to trade those shares.

Say we put a little under $1,000.00 today at the $26.99 recent stock price would buy us 37 Weyco Group Inc shares.

A $10 broker fee paid half at purchase and half at sale costs $0.27 per share.

Subtract that $0.27 brokerage cost from the estimated $1.93 gross annual gain leaves a net gain of $1.66 X 37 shares

= $61.42

for a 6.15% net gain on a $998.63 investment.

Therefore, Weyco Group Inc whose trading ticker symbol is WEYS now shows a possible net gain of 6.15% including its estimated 3.4% dividend yield.

One broker covers this stock:

She says "Hold" your WEYS shares

Therefore, you can look at Weyco Group Inc and see it has made money, is making money, and could make 6.15% over the next year including its 3.4% estimated 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 determine if Weyco Group Inc is worth your time and money.