Daily Stock Analysis: John Wiley & Sons - Wednesday, December 16

opened book

Source: Unsplash

The portfolio of stocks I started building on September 8, at a one stock per week pace for the next year, is named Vista. I will select its fifteenth stock this weekend. Vista is the sixth portfolio I've built (at a one dividend dog per-week pace) since 2014. Six portfolios = VI for Vista!

Vista is planned to Look Ahead for Outstanding, Proven, Dividend Winners. (Like Aristocrats)

Today I'll review the third of five communication services sector stock candidates vying to be that fifteenth selection in Vista.

Today we look at a mid-cap publishing company named John Wiley & Sons Inc. Its trading ticker symbol is JW-A. This is my second report on Wiley for Vista. I last reviewed this company on November 20.

John Wiley & Sons is one of the foremost global providers of academic journals, books, pre-and post-hire assessments and training, test preparation materials, and online education program management solutions. 

'Wiley derived nearly 80% of its total fiscal 2020 revenue from digital products and tech-enabled services, with just over half of the total top line coming from its research publishing and platforms segment, 36% from its academic and professional learning effort, and 13% from its education services unit. 

Of fiscal 2020 revenue, 52% was derived in the United States, 10% in the United Kingdom, and 6% in Germany, with no other country accounting for more than 5% of sales.

The company was founded in 1807 and is headquartered in Hoboken, New Jersey.

I use three key data points to gauge dividend equities or funds like John Wiley & Sons Inc:

(1) Price

(2) Dividends

(3) Returns

Those three basic keys best tell whether a company has made, is making, and will make money. 

JW-A Price

Wiley's price per share closed at $45.06 yesterday. A year ago its price was $48.75. Price is down $3.69 or nearly 7.57% on the year.

If Wiley's stock trades in the range of $30 to $50 this next year, its recent $45.06 price might rise by $2.94 to reach $48.00 by December 16, 2021. 

JW-A Dividends

Wiley's most recently declared quarterly dividend was $0.3425 paid October 21st. Dividends are estimated to total $1.37 per share annually and yield 3.04% at yesterday's $45.06 closing price.

IPG Gains?

Adding the $1.37 annual anticipated dividend to my $2.94 optimistic estimate of Wiley's price upside shows a $4.31 potential gross gain, per share, to be reduced by any costs to trade the shares.  

Put little under $1,000.00 today in John Wiley & Sons Inc at $23.70 and we would buy 22 shares JW-A stock.

A $10 broker fee (if any) paid half at purchase and half at sale could cost us  about $0.45 per share.

Subtract that maybe $0.45 brokerage cost from my estimated  $4.31 gross gain per share results in a net gain of $3.86 X 22 shares = $84.92 for an 8.5% net gain on a $991.32 investment.

So it goes that John Wiley & Sons Inc shows a possible 8.5% net gain including a 3.04% dividend yield. It could be more, it could be less. 

All of the estimates above are speculation based on the past history of  John Wiley & Sons Inc. Only time and money invested in this stock will determine its worth.

Disclaimer: This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a solicitation, ...

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