A portfolio of stocks I've been building since September 3, 2019, named Volio, will eventually hold 52 dividend dogs. Volio is the fifth portfolio I've built (at a one dividend dog per-week pace) since 2014. Five portfolios = V for Volio!
Today I'm reviewing the third of five consumer defensive sector stocks poised to join my Volio folio this week. This could be my thirty-eighth pick for Volio!
That consumer defensive sector includes twelve industries all related to providing convenient packaged goods we've just gotta have. Industries like: beverages, brewed, soft, or distilled; confectioners; discount stores; education & training; farm products; food distribution; grocery stores; household & personal products; packaged goods; tobacco.
My subject today is a farm products supplier named, Limoneira Co. Its trading ticker symbol is LMNR. This is my first ever report on Limoneira Co.
Limoneira Co is an agribusiness and real estate development company. Its operating segments are Agribusiness, Rental Operations, and Real estate development.
The agribusiness consists of fresh lemons, lemon packing, avocados, and other agribusinesses.
Rental operations include residential and commercial rentals, whereas real estate development includes real estate projects and development.
It generates a majority of its revenue from the Agribusiness segment.
The company markets and sells its lemons directly to the foodservice, wholesale, and retail customers; avocados to a packing and marketing company; oranges, specialty citrus, and other crops through Sunkist and other third-party packinghouses; and wine grapes to wine producers.
Limoneira Company was founded in 1893 and is headquartered in Santa Paula, California.
I use three key data points to gauge dividend equities or funds like Limoneira Co:
(1) Price
(2) Dividends
(3) Returns
Besides those three, several other keys will finally unlock an equity or fund in which to invest, or not.
Those three basic keys, however, best tell whether a company has made, is making, and will make money.
LMNR Price
Limoneira's price per share closed at $12.85 yesterday. A year ago their price was $19.41. Market price dropped $6.56 or just about 33.8% in the past year.
Assuming Limoneira's stock trades in the range of $10 to $18 this next year, its recent $12.85 price might rise by $2.15 to reach $15.00 by May 20, 2021.
LMNR Dividends
Limoneira's most recent declared quarterly dividend was $0.075 paid April 17th. That $0.075 Q dividend equates to $0.30 annually and yields 2.33% at yesterday's $12.85 share price.
LMNR Gains?
Adding the 0.30 annual estimated dividend to my $2.15 optimistic estimate of Limoneira's price upside shows a $2.45 potential gross gain, per share, reduced by any costs to trade those shares.
A little over $1,000.00 invested today in Limoneira Co shares at their $12.85 price, buys 78 shares of LMNR stock.
A $10 broker fee paid half at purchase and half at sale could cost about $0.13 per share.
Subtract that $0.13 brokerage cost from my estimated $2.45 gross gain per share results in a net gain of $2.32 X 78 shares = $180.96 for an 18% net gain on a $1,002.30 investment.
Limoneira Co shows a possible 18% net gain including a 2.33% dividend yield. It could be more, it could be less.
The above speculation is based on past performance and supposition. Only time and money invested will tell if Limoneira Co is worth it.
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