Russell Has Good Metals

Every New York stock exchange trading day I'm posting a daily dividend stock or fund review. I'll share the three chief qualities of just one equity or fund that could be selected for a dividend stock portfolio I've named the Safari to Sweet Success.

This week's slot in the Safari portfolio is reserved for the basic materials sector.

That sector includes thirteen industries all related to mining or making commodities. Industries include: agricultural inputs, aluminum; building materials, chemicals, coal, copper, gold, industrial metals, lumber & wood, paper, silver, specialty chemicals, and steel. 

Today I'm reviewing a Canada-based supplier of steel and other metal products in North America 

The company's name is Russell Metals Inc. It's trading ticker symbol is RUSMF.

The company operates in three segments, namely: Metals Service Centers, Energy Products, and Steel Distributors. 

The Metals Service segment sells plates and flat-rolled products, tubing, and structural metals. 

Energy Products are oil country staple pipes, valves, and fittings.

The Steel Distribution segment serves other steel service centers and large manufacturers

Russell Metals Inc. was founded in 1929 and located in Mississauga, Ontario, Canada.

I use three primary keys to measure dividend equities or funds like Russell Metals Inc:

(1) Price

(2) Dividends

(3) Returns

Besides those three main keys, I'll use four more to finally unlock an equity or fund in which to invest.

These first three keys test whether the company has made, is making, and will continue to make money.

RUSMF Price

Russell Metals Inc.'s price at Wednesday's market close was $23.65 per share. The company has positive momentum. Just a year ago its price was $19.73. That's a gain of $3.92 in the past year. Can RUSMF do as well in the coming year?  If it does, its price will increase from $23.65 to $27.57, or 16.6%.

RUSMF Dividends

The company's most recent variable quarterly dividend was $0.2989 declared in November and paid December 15th. The dividend multiplied x 4 is $1.1956 annually.

At Wednesday's closing price of $23.65 per share, the annual yield from $1.1956 showed as 5%.

Are Gains Ahead For RUSMF?

Adding the dividend of $1.1956 to the $3.92 potential upside from a repeat of 2017's price performance projects a possible $5.12 gross gain.  

Net gains for RUSMF depends on how many shares are bought. A $1,000.00 budget to buy shares at RUSMF's last $23.65 closing price would let us purchase 42 shares. 

Those 42 shares will be hit with a broker fee of about $5 at purchase and another $5 at sale (for a total of $10 to get any gains). Each share then has a brokerage cost of about $0.24.

Subtracting the $0.24 brokerage cost from the estimated $5.12 gross gain shows a net gain to 2019 of $4.88

X 42 shares 

= $204.96

or about a 21% net on our $993.30 investment.

Therefore, Russell Metals Inc. (whose ticker symbol is RUSMF), shows a possible 21% gain by my simple year over year calculation and included in the take is a 5% annual dividend yield.

These forward-looking numbers are conjecture based on past year performance. The actual results remain to be seen.  They could turn out to move lower. More study is required for you to determine if Russell Metals Inc. is worth your time and money.