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 twelfth 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 fifth of five consumer defensive sector stock candidates vying to be that thirteenth selection in the Vista portfolio.

My subject today is a small-cap food distribution company named Andersons Inc. Its trading ticker symbol is ANDE. This is my first report on Andersons Inc for Vista and while I reviewed for my previous portfolios, I never chose it.

The Andersons Inc is an agriculture company that conducts business in North America. 

Its operations are segmented into trade, ethanol, plant nutrient, and rail.  The trade group operates grain elevators and generates income through buying and selling grains, fuel, and space leasing. The trade group contributes over half the company's revenue. 

The ethanol segment buys and sells corn oil and ethanol, offers facility operations, and invests in ethanol plants.  The plant nutrient group manufactures, distributes, and sells fertilizer and plant nutrients.  The company's rail segment leases, repairs, and sells railway facilities.

The Andersons, Inc. was founded in 1947 and is based in Maumee, Ohio.

I use three key data points to gauge dividend equities or funds like The Anderson Inc:

(1) Price

(2) Dividends

(3) Returns

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

ANDE Price

The Andersons price per share closed at $23.04 yesterday. A year ago its price was $23.97. Price is down $0.93 or about 3.9% on the year.

If The Andersons stock trades in the range of $12 to $25 this next year, its recent $23.04 price might rise by $0.96 to reach $24.00 by December 4, 2021. 

ANDE Dividends

The Andersons most recently declared quarterly dividend was $0.175 paid October 22nd. Dividends are estimated to total $0.70 per share annually and yield 3.04% at yesterday's $23.04 closing price.

ANDE Gains?

Adding the $0.70 annual anticipated dividend to my $0.96 optimistic estimate of The Andersons Inc's price upside shows a $1.66 potential gross gain, per share, to be reduced by any costs to trade the shares.  

Put little over $1,000.00 today in The Andersons Inc at $23.04 and we would buy 43 shares of ANDE stock.

A $10 broker fee (if any) paid half at purchase and half at sale could cost us about $0.23 per share.

Subtract that maybe $0.23 brokerage cost from my estimated  $1.66 gross gain per share results in a net gain of $1.43 X 43 shares = $61.49 for a 6.15% net gain on a $990.72 investment.

So it goes that The Andersons Inc shows a possible 6.15% 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 The Andersons Inc. Only time and money invested in this stock will determine its worth.