Stock Analysis: Poste Italiane Might Grow 16.67% In A Year

The company was founded in 1925 and is headquartered in Rome, Italy.

Poste Italiane SpA (PITAF) provides postal services. It operates through four segments: (1) Mail, Parcels, and Distribution, (2) Payments, Mobile and Digital, (3) Financial Services, and (4) Insurance Services.

Three key data points gauge PITAF (or any dividend paying entity):

(1) Price 

(2) Dividends

(3) Returns

Those three keys also indicate if any company has made, is making, and will make money.

PITAF Price

Poste Italiane’s single share price increased $1.77 (or about 8.2%) from $21.68 to $23.45 in the past year,  per Thursday’s opening market report.

No analysts cover the stock. 

However, the average of the past five year price progressions shows an average annual gain of $1.97, which I’ll use for the annual return, after I discuss dividends.  

PITAF Dividends

Poste Italiane has paid variable Semi-Annual dividends since June 2020. Its most recent SA dividend of $0.97 was paid June 24 (to shareholders of record June 23rd, yielding 8.26% annually (per Thursday’s opening market report.)

PITAF Returns

Putting it all together, as of August 6th, a possible gross gain of $3.91 was projected. The $1.97 per share average annual Gain was added to the $1.94 forward looking annual dividend to make that $3.91 gross gain.

A little over $1000 invested in PITAF at Thursday’s $23.45 opening share price would buy 43 shares which multiply the $3.91 gross gain to $166.74 for the coming year, or 16.67%.

My dividend dogcatcher rule is to only buy initial shares of a dividend stock that pay an annual dividend (from $1000 invested) that is greater than the cost of one share.

Poste Italiane projected an annual dividend from $1K invested of $82.60. PITAF shows an annual dividend which proves to be over 3.5 times  the recent $23.45 single-share price.

The exact track of PITAF’s future share price and dividend will entirely be determined by market action and company finances.  

Remember the best way to track stock performance and dividend payments is through direct ownership of company shares.