South32 Limited Mines Many 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 the latest portfolio I'm building (my Safari To Sweet Success portfolio) seeks a high-yield and growing stock in the basic materials sector. That sector includes thirteen industries all tied to mined or manufactured commodities. Basic Materials 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 Large Cap Australian-based industrial metals and minerals firm operating in Australia, Southern Africa, and South America. I  previously reported on this company January 25th.

The company's name is South32 Limited. Its trading ticker symbol is SHTLF.

South32 Limited has a portfolio of assets producing alumina, aluminum, bauxite, energy and metallurgical coal, manganese ore and alloy, ferronickel, silver, lead, and zinc. It also exports its products.

The company was formerly known as BHP Coal Holdings Pty Limited and changed its name to South32 Limited in March 2015. 

South32 Limited was incorporated in 2000 and is headquartered in Perth, Australia.

I use three key data points gauge the value of any dividend equity or fund like South32 (SHTLF): 

(1) Price

(2) Dividends

(3) Returns

After those three, four more keys will finally unlock an equity or fund in which to invest.

However, it's those first three primary traits that best tell whether a company has made, is making, and will make money. 

SHTLF Price

South32's price was $2.71 per share at yesterday's market close.  A year ago its price was $2.05 for a gain of $0.66 per share in the past year.  

Assuming SHTLF's price will trade between the range of $2.00 to $4.00 next year, its price could grow another $0.66 from $2.71 to $3.37 by May, 2019. 

SHTLF Dividends

South32's most recent variable semi-annual dividend was $0.073 declared in February and paid April 5th. The total annual dividend for 2018 is estimated at $0.115 per share for a yield of 4% at yesterday's $2.71 stock price.

Gains For SHTLF?

The $0.66 estimated year over year price gain plus an anticipated dividend of  $0.115 makes a projected gross annual gain of $0.775 per share, which will be reduced by costs to trade those shares.  

$1,000.00 invested today at the $2.71 price buys 369 shares. 

A $10 broker fee paid half at purchase and half at sale subtracts about $0.025 per share. Taking that $0.025 brokerage cost out of the estimated $0.775 gross gain leaves a net gain of $0.75 X 369 shares = $276.75 or a 27.7% potential net gain on a $999.99 investment.

Therefore, South32 Limited (whose ticker symbol is SHTLF), now shows a possible 27.7% net gain including a 4% dividend yield. 

No analysts cover this stock. Furthermore, Y Charts shows "insufficient data"to rate the stock for value, fundamentals or historical valuation.

However, you could look at all the numbers like this: South32 Limited (SHTLF ) has made money, is making money, and could net a  27.7% net gain next year including  4% dividend yield. It could be more, it could be less.

Those forward-looking numbers were conjecture based on past year performance. Actual results remain to be seen.  They could turn out to be far higher or lower. More study is required for you to determine if South32 Limited (SHTLF) is worth your time and money.