Daily Stock Pick: Resource Connection

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 fourth of five industrials sector stocks poised to join my Volio folio this week. One could be my forty-fifth pick for Volio!

That industrials sector includes twenty-three industries all dedicated to designing, fabricating, and servicing stuff we want and use. Those industrials industries range from aerospace and defense to waste management with all the transportation, business services, and equipment required in between.

My subject today is a small consulting services firm named, Resources Connection Inc. Its trading ticker is RGP. This is my first report on Resources Connection Inc for any of my portfolios.

Resources Connection, Inc. provides consulting services to business customers under the Resources Global Professionals name in North America, Europe, and the Asia Pacific.

The company offers services in the areas of business strategy and transformation, including program and project management, change management, transaction advisory, executive search, human resources, supply chain, and legal services; and risk and compliance.

It also provides finance and accounting services.

The company was formerly known as RC Transaction Corp. and changed its name to Resources Connection, Inc. in August 2000.

Resources Connection, Inc. was founded in 1996 and is headquartered in Irvine, California.

I use three key data points to gauge dividend equities or funds like Resources Connection Inc:

(1) Price

(2) Dividends

(3) Returns

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

RGP Price

RGP's price per share closed at $11.40 yesterday. A year ago their price was $15.76. Price fell $4.36 or just about 27.7% last year.

Assuming RGP's stock trades in the range of $5 to $15 this next year, its recent $11.40 price might rise by $1.10 to reach $12.50 by July 9, 2021.

RGP Dividends

RGP's most recent declared quarterly dividend was $0.14, paid June 10th. That $0.14 Q dividend equates to $0.56 annually for a yield of 4.91% at yesterday's $11.40 share price.

RGP Gains?

Adding the $0.56 annual estimated dividend to my $1.10 optimistic estimate of Resources Connection Inc's price upside shows a $1.66 potential gross gain, per share, to be reduced by any costs to trade the shares.

If we put little over $1,000.00 today in Resources Connection Inc we would buy 88 shares of RGP stock.

A $10 broker fee paid half at purchase and half at sale could cost us about $0.11 per share.

Subtract that $0.11 brokerage cost from my estimated $1.66 gross gain per share results in a net gain of $1.55 X 88 shares = $136.40 for a 13.6% net gain on a $1,003.20 Investment.

Thus, Resources Connection Inc shows a possible 13.6% net gain including a 4.91% 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 Resources Connection Inc is worth it.

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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