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 my Safari portfolio seeks a company in the basic materials sector.
That sector has companies that mine or manufacture basic commodities, specifically: agricultural inputs, aluminum; building materials, chemicals, coal, copper, gold, industrial metals, lumber & wood, paper, silver, specialty chemicals, and steel.
Today I'm reviewing another industrial metal and minerals firm. This one is named South 32 Limited. Its trading ticker symbol is SHLTF.
South 32 Limited is a metals and mining company. It has a portfolio of assets producing alumina, coal, manganese, nickel, silver, lead and zinc.
The company works primarily in Australia, Southern Africa, and South America. It was formerly known as BHP Coal Holdings Pty Limited and changed its name to South32 Limited in March 2015. The company was incorporated in 2000 and is headquartered in Perth, Australia.
I use three primary keys to gauge dividend equities or funds like South 32 Limited (SHTLF):
(1) Price
(2) Dividends
(3) Returns
The first three keys, though, best test whether a company has made, is making, and will make money.
SHTLF Price
South 32 Limited's price at Wednesday's market close was $3.07 per share. The company has made money. One year ago its price was $2.13. So it's a gained$0.94 per share in the past year. If SHTLF does as well in 2018 its price will increase from $3.07 to $4.01 per share or about 31 %.
SHTLF Dividends
South 32 Limited's most recent semi-annual dividend was $0.0637 declared in August and paid out October 12th.
The semi-annual dividend for 2018 is estimated as $0.12 payable in portions paid out in April and October.
The yield from a $0.12 dividend would be 3.9% at yesterday's $3.07 price
Gains For VEDL?
Adding the $0.12 dividend to my $0.94 estimated year over year price gain shows a potential $1.06 gross gain for the coming year.
But there are costs to trade South 32 Limited shares. A$1,000.00 at Wednesday's $3.07 closing price would fund a purchase of 326 shares.
Those 326 shares will be hit with a broker fee of $5 at purchase and another $5 at sale for a brokerage cost of about $0.03 per share
Subtracting that $0.03 brokerage cost from the estimated $1.06 gross gain shows a net gain to 2019 of $1.03 X 326 shares = $335.78 or about a 34% net gain on our $1,000.82 investment.
Therefore, South 32 Limited (whose ticker symbol is SHTLF), shows a possible 34% gain by my simple year over year calculation with a 3.9% dividend baked in.
No analysts cover this stock but its price trajectory over the past two years has been upward.
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 Vendanta Limited (VEDL) is worth your time and money.
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