The basic materials sector includes thirteen industries all related to mining, making and delivering essential commodities. The basic material industries are: agricultural inputs; aluminum; building materials; chemicals; coal; copper; paper; silver; specialty chemicals; steel.
Today I'm reviewing an agricultural inputs company, Israel Chemicals Ltd. It's trading ticker symbol is ICL.
Israel Chemicals Ltd is a specialty minerals company that develops, manufactures, markets and sells fertilizers. Its business segments are two: Essential Minerals, and Specialty Solutions.
The company sells its products through marketing companies, agents, and distributors.
Israel Chemicals Ltd. was founded in 1968 and is headquartered in Tel Aviv, Israel.
Three primary keys are used to gauge dividend equities or funds like Israel Chemicals Ltd.:
(1) Price
(2) Dividends
(3) Returns
Beside those three, four more keys 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.
ICL Price
Israel Chemicals's price at yesterday's (Tuesday) market close was $4.40 per share. A year ago its price was $4.30. Indeed, it gained $.10 per share in the past year.
ICL stock last year traded in about a one dollar range from a low of $3.85 to a high of $4.85
Assuming Israel Chemicals price trends up $0.10 this coming year its value will increase from $4.40 to $4.50, or about 2%.
ICL Dividends
Israel Chemicals's most recent annualized dividend was $0.16 paid quarterly in January, April, June, December.
The annual dividend for 2018 is estimated at $0.17 payable in quarterly beginning in March
The yield from that $0.17 annual dividend was 3.9% at Tuesday's $4.40 price.
Gains For ICL?
Adding the $0.17 dividend to the hypothetical $0.10 estimated year over year price gain shows a potential $0.17 gross gain for the coming year.
Subtract the cost to trade Israel Chemicals shares, say, $1,000.00 invested at yesterday's $4.40 price bought 227 shares.
Those 227 shares cost broker fees of $10 ($5 at purchase and another $5 at sale) or about $0.044 per share
Subtracting that $0.044 brokerage cost from the estimated $0.27 gross gain leaves a net gain to next year of $0.226
X 227 shares
= $51.30
or a 5% net gain on a $998.80 investment.
Therefore, Israel Chemicals Ltd. (whose ticker symbol is ICL), now shows a possible 5% gain by my simple year over year calculation with a 3.9% dividend included.
Three analysts cover this stock. All three say Hold.
The three analyst median target price for next year is $4.42 which is $0.08 lower than my year over year estimate.
These forward-looking numbers are conjecture based on past year performance. The actual results remain to be seen. They could turn out to be far lower. More study is required for you to determine if Israel Chemicals Ltd. is worth your time and money.
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