Spark New Zealand Ltd, bears the ticker symbol SPKKY, and this is my second mention of SPKKY for this Viking Portfolio. I discussed it back on January 12th. At a lower price it seems worth revisiting.

Spark is one of only three large integrated telecommunications groups in New Zealand.

It is the dominant provider of fixed-line services in the country and effectively equal-number-one player in the mobile telephony market.

It also has a commanding presence in the New Zealand corporate and wholesale telecommunications services provision space.

Spark's operations are split into mobile, voice, broadband, and digital-related services.

The company was formerly known as Telecom Corporation of New Zealand Limited and changed its name to Spark New Zealand Limited in August 2014.

Spark New Zealand Limited was incorporated in 1987 and is headquartered in Auckland, New Zealand.

Three key data points gauge Spark, or any dividend-paying firm. They are:

(1) Price

(2) Dividends

(3) Returns

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

SPKKY Price

Spark’s price per share was $15.71 at Monday’s market close. In the past year, Spark’s share price fell $0.93 or 5%.

If SPKKY stock trades in the range of $14.00 to $18.00 this next year, its recent $15.71 share price might rise to $16.50 by next year. My upside estimate of $0.79 could just as easily move to the downside. Only one analyst covers Spark New Zealand Ltd stock for brokers.

SPKKY Dividend

Spark’s most recent semi-annual dividend of $.4954 paid-out today, April 17 to shareholders of record March 15.

SPKKY Returns

Adding a $.91 annual estimated SPKKY dividend to my $0.79  estimated price upside, reveals a $1.70 potential gross gain per share.

At Monday’s $15.71 closing price, a little over $1000 would buy 64 shares.

A $10 broker fee (if charged), paid half at purchase and half at sale, might cost us about $0.16 per share.

Subtract that maybe $0.16 brokerage cost from my estimated $1.70 gross price gain estimate makes a net amount of $1.54 X 64 shares = $98.56 or a 9.8% net gain.

In the next year our $1K investment in shares of Spark New Zealand Ltd might generate $57.90 in dividends. Furthermore, a single share of SPKKY at Friday’s $15.71 price is over 3.5 times below the annual dividend income from $1000.00 invested.

So, by my dogcatcher ideal, this may be a prime time to consider SPKKY shares, based on their dividends for 2023. The dividend from $1k invested is 3.69 times greater than SPKKY’s single share price. Consider yourself alerted.

All of the estimates above are speculation based on the past history of investment in shares of Spark New Zealand Ltd. Only time and money invested in this stock will determine its future market value.

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