Daily Stock Pick: Weyco Group - Tuesday, April 14

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 first of five consumer cyclical sector stocks this week striving to join my Volio folio. This could be my thirty-third pick for Volio!

That consumer cyclical sector includes twenty-eight industries ranging from Advertising Agencies to Apparel, Autos, Broadcasting, Department Stores, Gambling, Leisure, Lodging, Packaging, Personal Services, Shoes, Restaurants, Rubber, Plastics, Textiles, and all such consumer aimed enterprises.

My subject today is a footwear and accessories company named, Weyco Group Inc. Their trading ticker symbol is WEYS. This is my third ever report on Weyco Group. Most recently I discussed this stock on January 14th. Time for another look...

Weyco Group Inc is a US-based company, engaged in the manufacturing, designing and distribution of footwear.

The company designs and markets footwear for men, women, and children. The company organizes its business into two segments; the North American wholesale and the North American retail segment.

It markets its apparel, accessories, and footwear under the brand name of Florsheim, Nunn Bush, Stacy Adams, BOGS, Rafters, and Umi. The company has operational footprints in the United States, Canada, Europe, Asia, and Australia among others. It generates a majority of its revenue from the United States.

The company was formerly known as Weyenberg Shoe Manufacturing Company and changed its name to Weyco Group, Inc. in April 1990.

Weyco Group, Inc. was incorporated in 1906 and is based in Milwaukee, Wisconsin.

I use three key data points to gauge dividend equities or funds like Weyco Group Inc:

(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.

WEYS Price

Weyco's price per share closed at $19.00 yesterday. A year ago their price was $33.33. Market price has dropped $14.33 or nearly 43%.

Assuming Weyco's stock trades in the range of $15 to $25 this next year, its recent $19.00 price might rise by $1.37 to reach $21.00  by April 13, 2021.

WEYS Dividends

Weyco's most recent declared quarterly dividend was $0.24 paid March 31st. That $0.24 Q dividend shows an annual payout of $0.96 to yield 5.05% at yesterday's $19.00 share price.

WEYS Gains?

Adding the $0.96 annual estimated dividend to my $3.00 estimate of Weyco Group Inc price upside shows a $3.96 potential gross gain, per share, reduced by any costs to trade those shares.

Put a little over $1,000.00 today in Weyco Group Inc at the $19.00  share price, buys 53 shares.

A $10 broker fee paid half at purchase and half at sale could cost about $0.19 per share.

Subtract that $0.19  brokerage cost from my estimated $3.96 gross gain per share results in a net gain of $3.77 X 53 shares = $199.81 or a 19.85% net gain on a $1,007.00 investment.

Therefore, Weyco Group Inc, whose trading ticker symbol is WEYS shows a possible 19.85% net gain including a 5.05% 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 Weyco Group Inc is worth the expenditure.

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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