Daily Stock Analysis: Matthews International (MATW)

The new portfolio of stocks I started building September 8, at a one stock per week pace for the next year, is named Vista. I will select its third stock this coming 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 we'll review the fourth of five industrials sector stock candidates vying to be that third selection in the Vista portfolio.

My subject today is a small cap industrial conglomerate named, Matthews International Corp. Its trading ticker symbol is MATW. This is my first ever report on Matthews International Corp. for this Volio dog of the week portfolio. I did review it for Volio, also. 

Matthews International Corp is a personal services company that primarily provides brand solution services, memorialization products, and industrial products in the United States and Europe. 

The majority of Matthews' revenue is derived from its SGK Brand Solutions business, which provides brand development services, printing equipment, creative design services, and embossing tools to the consumer packaged goods and packaging industries. 

The company's Memorialization segment, which sells bronze and granite memorials, caskets, and cremation equipment to the cemetery and funeral home industries, also contributes a significant amount. Most of Matthews' revenue is generated from sales made in the U.S., while European customers also contribute a sizable percentage.

The company's Industrial Technologies segment designs, manufactures, and distributes marking and coding equipment and consumables, industrial automation products, and order fulfillment systems for identifying, tracking, picking, and conveying consumer and industrial products. 

This segment serves manufacturers, suppliers, and distributors of durable goods and building products; consumer goods manufacturers; and pharmaceutical producers. 

Matthews International Corporation was founded in 1850 and is based in Pittsburgh, Pennsylvania.

I use three key data points to gauge dividend equities or funds like Matthews International Corp (MATW):

(1) Price

(2) Dividends

(3) Returns

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

MATW Price

Matthews's price per share closed at $21.53 yesterday. A year ago its price was $34.30. Price fell $12.77 or just about 37.23% last year.

If Matthews's stock trades in the range of $18 to $30 this next year, its recent $21.53 price might rise by $6.47 to reach $28.00 by September 24, 2021. 

MATW Dividends

Matthews's most recently declared quarterly dividend was $0.21 paid August 17th and will total $0.84 annually and yield 3.9% at yesterday's $21.53 closing price.

MATW Gains?

Adding the $0.84 annual anticipated dividend to my $6.47 optimistic estimate of MATW's price upside shows a $7.31 potential gross gain, per share, to be reduced by any costs to trade the shares.  

If we put a little under $1,000.00 today in Matthews International Corp at $21.53, we would buy 46 shares of MATW stock.

A $10 broker fee paid half at purchase and half at sale could cost us about $0.22 per share.

Subtract that $0.22 brokerage cost from my estimated $7.31 gross gain per share results in a net gain of $7.09 X 46 shares = $326.14 for a 32.6% net gain on a $990.38 investment.

So it goes that Matthews International Corp (MATW) shows a possible 32.6% net gain including a 3.9% dividend yield. It could be more, it could be less.  

All of the estimates above are speculation based on the past history of Matthews International Corp (MATW). 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 ...

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