Photo by Maxim Hopman on Unsplash
 

Sumitomo Corp bears the ticker symbol SSUMY, and this is my first mention of Sumitomo for this new Viking Portfolio, nor for any of my previous seven dog of the week folios.

Sumitomo Corp. is a Japanese conglomerate that operates various business units: metal products; transportation and construction systems; environment and infrastructure; media, ICT, and lifestyle-related goods and services; and mineral resources, energy, chemical, and electronics.

The businesses develop, manufacture, distribute, and service steel sheets, steel tubular products, nonferrous metal products, ship and aerospace equipment, railway cars, automobiles, construction equipment, lifestyle and food retail goods, materials and supplies, mineral resources, energy, electronics, and life sciences.

The group also offers services in infrastructure projects, real estate construction, and general construction and development projects

The company was incorporated in 1919 and is headquartered in Tokyo, Japan.

Three key data points gauge SSUMY, or any dividend-paying firm:

(1) Price

(2) Dividends

(3) Returns

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

SSUMY Price

Sumitomo Corp's price per share was $17.28 at Monday’s market close. In the past year, SSUMY's share price increased by $0.86, or about 5.2%.

If SSUMY stock trades in the range of $12.00 to $21.00 this next year, its recent $17.28 share price might reach $17.70 by next year. That upside estimate of $0.42 is $0.01 more than the average past five year’s annual price upsides.
 

SSUMY Dividends

Sumitomo Corp’s most recent semi-annual dividend of $0.42 casts a forward annual yield of 5.21%.
 

SSUMY Returns

Adding the $0.90 annual estimated SSUMY dividend to my one-year price upside estimate of $0.42 reveals a $1.32 potential gross gain estimate per share.

At Monday’s 17.28 closing price, a little over $1000 would buy 58 shares.

A $10 broker fee (if charged), paid half at purchase and half at the sale, might cost us about $0.17 per share.

Subtracting that maybe $0.17 brokerage cost from my estimated $1.32 gross gain makes a net gain of $1.15 X 58 shares = $66.70 for a 6.6% net gain including the 5.21% annual dividend yield.

In the next year, our $1K investment in shares of Sumitomo Corp could generate $52.10 in cash dividends. Furthermore, a single share of SSUMY at Friday’s $17.28 price is over 3 times less than the estimated annual dividend income from our $1000.00 investment.

So, by my dogcatcher ideal, this is a proper time to buy Sumitomo Corp. shares, based on their dividends for 2023. The current dividend from $1K invested is 3.02 times higher than the SSUMY single share price. Consider yourself alerted.

Now is the time to consider SSUMY shares.

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

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