Daily Stock Analysis: Swire Pacific

Swire Pacific Ltd, bearing the ticker symbol (SWRAY), has never yet been mentioned as a candidate for any of my previous seven dog of the week portfolios. This is its first mention as a candidate for the thirty-fourth selection for my Viking folio, the eighth such.

Swire Pacific Ltd is a Hong Kong-based conglomerate, with interests in property, aviation, beverage, and trading and industrials.

The property division, an 82% stake in Swire Properties, contributes more than half of the group's operating profit.

The beverage division is one of two Coca-Cola bottlers in mainland China, a bottler in Hong Kong, Taiwan, Vietnam and Cambodia, and in the mid-west and west of the United States.

The aviation division consists of Haeco, an aircraft engineering company, and a 45% stake in Cathay Pacific.

In 2020, the group ventured into healthcare investments.

John Swire and Sons Group, the parent company, holds a 43% stake in Swire Pacific but has 58% of the voting rights through a dual-class share structure.

Founded in 1816, SWRAY is based in Central, Hong Kong.

Three key data points gauge Swire Pacific Ltd 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.

SWRAY Price

Swire’s price per share was $7.19 at Friday’s market close. In the past year, its share price rose about 25% from $5.74 to today’s $7.19.

If Swire’s stock trades in the range of $5.00 to $10.00 this next year, its recent $7.19 share price might get up to $8.50 by next year. Of course, Swire price could go down about the same $1.31 amount or more.

My upside estimate of $1.31  is

$0.09 under the the  $1.45 past year increase.

SWRAY Dividend

Swire’s recent $0.2357 Semi-Annual dividend equates to $0.39 annually to yield 5.36% at Friday’s closing price.

SWRAY Returns

Adding the $0.39 projected annual dividend to my estimated $1.31 estimated price gain, reveals a $1.70 potential gross gain per share for the coming year.

At Friday’s $7.19 closing price, a little over $1000 would buy 139 shares.

A $10 broker fee (if charged), paid half at purchase and half at sale, might cost us about $0.07 per share.

Subtract that maybe $0.07 brokerage cost from my estimated $1.70 gross gain per share makes a net gain amount of $1.63 X 139 shares = $226.57 or a 22.6% net gain.

In the next year our $1K investment in shares of SWRAY could generate about $53.60 in dividends. Furthermore, a single share of SWRAY stock at Friday’s $7.19  closing price is over seven times less than the income estimated from $1000.00 invested.

So, by my dogcatcher ideal, this is a prime time to consider Swire Pacific Ltd based on its estimated dividends for 2023. The dividend from $1k invested is about 7.45 times greater than Swire’s single-share price. Consider yourself alerted.

This may be time to pounce on SWRAY but beware, its price is volatile.

All of the estimates above are speculation based on the past history of investment in shares of Swire Pacific 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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