Stock Analysis: Zhuzhou CCRC Times Electric May Gain 10.75% A Year

The electric company was founded in 2005 and is headquartered in Zhuzhou, China.

Zhuzhou CCRC (ZHUZY) sells and manufactures propulsion and control systems for trains and electric vehicles, signaling systems, power supply solutions, platform screen doors, rail maintenance vehicles, marine engineering equipment, and electrical components.

Three key data points gauge ZHUZY (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.

ZHUZY Price

Zhuzhou CCRC’s single share price rose $2.80 (or about 14%) from $19.70 to $22.50 in the past year, per Wednesday’s opening market report.

No analysts cover the stock. However, the average of a past six year price progression shows an average annual gain of about $1.04. Which I’ll average with the $2.80 past year gain to determine $1.92 as an average annual return, after I discuss ZHUZY dividends.  

ZHUZY Dividends

Zhuzhou CCRC Times Electric Co has paid variable Annual dividends since August 2016. The most recent Annual dividend of $0.50 is to be paid August 27 (to shareholders of record July 2nd, yielding 4.46% annually (per Wednesday’s opening market report.)

ZHUZY Returns

Putting it all together, as of August 19th, a possible gross gain of $2.42 was projected. The $1.92 per share average annual gain was added to the $0.50 forward looking annual dividend to make that $2.42 gross gain.

A little over $1000 invested in Zhuzhou CCRC Times Electric Co at Wednesday’s $22.50 opening share price would buy 44.4 shares which multiply the $2.42 gross gain to $107.55 for the coming year, or 10.75%.

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.

ZHUZY’s  projected annual dividend from $1K invested is $44.60 and that annual dividend proves to be just about 2 times more than the recent $22.50 single-share price.

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