Daily Stock Pick: P. H. Glatfelter Company
A portfolio of stocks I've been building since September 3 is named Volio. It 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 four basic materials sector stocks striving to join my Volio folio. This could be the twenty-first pick for Volio!
That materials sector includes thirteen industries all related to mining, making, and delivering essential commodities. They are: agricultural inputs; aluminum; building materials; chemicals; coal; copper; industrial metals; steel; paper; silver; specialty chemicals; gold.
My subject today is a paper and paper products company named, P.H. Glatfelter Co. Their trading ticker symbol is GLT. This is my second report on GLT. I last reported on them back on November 22, 2019, for this same Volio portfolio. Time for another look.
P.H. Glatfelter Co makes and sells a variety of paper, fiber products, and non-woven materials.
The specialty paper segment, which generates the majority of revenue, sells paper used for printing, envelopes, book publishing, greeting cards, and packaging.
The composite fibers segment sells single-serve tea and coffee filtration paper, wallpaper, and specialty papers including substrates for electrical applications.
The advanced airlaid materials segment sells feminine hygiene and adult incontinence products as well as wipes and other air-laid applications.
The majority of revenue comes from the United States.
P. H. Glatfelter Company markets its products directly, as well as through brokers and agents.
The company was founded in 1864 and is headquartered in York, Pennsylvania.
I use three key data points to gauge dividend-paying equities or funds like P.H. Glatfelter 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.
GLT Price
Glatfelter's price per share closed at $17.87 Friday. A year ago its price was $12.15. So, in the past year, its price increased by $5.72, or just over 47%.
Assuming Glatfelter's stock trades in the range of $12 to $22 this next year, its recent $17.87 price could rise by $2.13 to reach $20.00 by January 21, 2021, assuming upward price momentum continues.
GLT Dividends
Glatfelter's latest declared quarterly dividend was $0.13 per share payable February 1st.
That $0.13 Q dividend equates to $0.52 annually and yields 2.91% based on Friday's $17.87 closing price.
GLT Gains?
Adding the $0.52 annual estimated dividend to my $2.13 estimate of P.H. Glatfelter Co price upside shows a $2.65 potential gross gain, per share, which will be reduced by any costs to trade these shares.
As for costs, if we put a little over $1,000.00 today in P.H. Glatfelter Co at its recent $17.87 price, would buy 56 shares of GLT.
A $10 broker fee paid half at purchase and half at sale could cost us about $0.18 per share.
Subtract that $0.18 brokerage cost from the estimated $2.13 gross estimated gain per share leaves a net gain of $1.95 X 56 shares = $109.20 or a 10.85% net gain on a $1,000.72 investment.
Therefore, P.H. Glatfelter Co, whose trading ticker symbol is GLT shows a possible 10.85% net gain including a 2.91% dividend yield. It could be more, it could be less.
The above speculation is based on past year performance. The actual results remain to be seen to learn if P.H. Glatfelter Co, is worth your time and money.
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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