Monday, April 10, 2023 3:46 AM EDT
Honda Motor Co Ltd bears the ticker symbol (HMC), and this is my first mention of HMC for this new Viking Portfolio but I did choose Honda as my 18th Selection for my Viital portfolio number 7.
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Honda Motor was originally a motorcycle manufacturer. Today, the firm makes automobiles, motorcycles, and power products such as boat engines, generators, and lawnmowers.
Honda sold 21.1 million cars and motorcycles in fiscal 2022 (4.1 million of which were autos), and consolidated sales were JPY 14.6 trillion. Automobiles constitute 63% of revenue and motorcycles 15%, with the rest split between power products and financial services. Honda also makes robots and private jets.
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Honda Motor Co., Ltd. was founded in 1946 and incorporated in 1948, is headquartered in Tokyo, Japan.
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Three key data points gauge HMC 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.
HMC Price
Honda’s price per share was $26.13 at Thursday’s market close. In the past year, Honda’s share price rose $0.07 or about 0.2%.
If Honda stock trades in the range of $22.00 to $32.00 this next year, its recent $26.14 share price might rise to $30 by next year. My upside estimate of $3.87 is just $0.84 under the median of price estimates from four analysts tracking Honda for brokers.
HMC Dividend
Honda’s most recent quarterly dividend of $0.44 was last paid in December, 2022. Honda has suspended dividends since that time.
HMC Returns
Ignoring the zero annual estimated HMC dividend and taking just the $3.82 estimated price upside, reveals a $3.82 potential gross gain per share.
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At Thursday’s $26.14 closing price, a little over $1000 would buy 38 shares.
A $10 broker fee (if charged), paid half at purchase and half at sale, might cost us $0.26 per share.
Subtract that maybe $0.26 brokerage cost from my estimated $3.82 gross price gain estimate makes a net amount of $3.56 X 38 shares = $135.28 or a 13.5% net gain.
In the next year our $1K investment in shares of HMC will generate no dividends. Furthermore, a single share of HMC at Thursday’s $26.13 price is many times greater than the zero annual dividend income from $1000.00 invested.
So, by my dogcatcher ideal, this is not time to consider HMC shares, based on their dividends for 2023. The dividend from $1k invested is non-existent. Consider yourself alerted.
All of the estimates above are speculation based on the past history of investment in shares of Honda Motor Co Ltd. Only time and money invested in this stock will determine its future market value.
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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 ...
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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, recommendation or endorsement to buy or sell any security. Prices and returns on equities in this article except as noted are listed without consideration of fees, commissions, taxes, penalties, or interest payable due to purchasing, holding, or selling same.
Disclosure: This article was compiled by Rydlun & Co., LLC from data derived from www.ycharts. com; www.finance.yahoo.com; analyst median target price by YCharts.
Catch Your Underdog Daily Dividend on Facebook!
At 8:45 AM every NYSE trading day on Facebook/ Dividend Dog Catcher Fredrik Arnold does a quick live video summary of one stock contending for a weekly slot on his new Vista portfolio.
Today he followed this script on his Underdog Daily Dividend Show!
Always remember: Root for the Underdog.
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