Daily Stock Analysis: The Keg Royalties
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The Keg Royalties Income Fund is a Canadian company in the Restaurant business sector. It is traded under the sticker (KRIUF).
Its primary activity is operating and franchising keg steakhouse and bar restaurants in Canada and the United States. The target market of this company is people who want a higher-end casual dining experience. |
The company was founded in 2002 and is headquartered in Richmond, Canada.
Three key data points gauge The Keg Royalties Income Fund 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.
KRIUF Price
Over the past year, Keg’s price per share fell about 10.7% from $12.72 to $11.36 as of Monday’s market close.
If Keg’s stock trades in the range of $10.00 to $13.00 this next year, its recent $11.36 share price might get up to $11.80 by next year. Of course, Keg’s price could go down about the same $0.44 amount, or more.
My upside estimate of $0.44 is about equal to the average of KRIUF’s annual price increases over the past fifteen years.
KRIUF Dividend
Keg Royalties Income Fund’s recent $0.07 monthly variable dividend equates to $0.84 annually to yield 7.39% at Monday’s closing price.
KRIUF Returns
Adding the $0.84 projected annual dividend to my estimated $0.44 price upside, reveals a $1.28 potential gross gain per share for the coming year.
At Friday’s $11.36 closing price, a little under $1000 would buy 88 shares.
A $10 broker fee (if charged), paid half at purchase and half at sale, might cost us about $0.11 per share.
Subtract that maybe $0.11 brokerage cost from my estimated $1.28 gross gain per share makes a net gain amounting to $1.17 X 88 shares = $102.96 or a 10.3% net gain.
In the next year our $1K investment in shares of KRIUF could generate about $73.90 in dividends. Furthermore, a single share of Keg’s stock at Monday’s $11.36 closing price is less than one-sixth the income estimated from $1000.00 invested.
So, by my dogcatcher ideal, The Keg Royalties Income Fund based on its estimated dividends for 2023. The dividend from $1k invested is 6.5 times greater than KRIUF’s single-share price. Consider yourself alerted.
This may be a time to pounce on KRIUF. But beware, its price is range-bound, and over $6.00 below its all time $17.42 high posted in August of 2017.
The foregoing article is based on past history of The Keg Royalties Income Fund. The only true measure of future performance is from active investment in the company.
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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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