Daily Stock Pick: Service Corp International
A portfolio of stocks I've been building since September 3, 2019, named Volio, will eventually hold 52 dividend dogs. Volio is the fifth portfolio I've built (at a one dividend dog per-week pace) since 2014. Five portfolios = V for Volio!
Today I'm reviewing the third of four consumer cyclical sector stocks poised to join my Volio folio this week. This could be my thirty-ninth pick for Volio!
That consumer cyclical sector includes twenty-eight industries ranging from Advertising Agencies to Apparel, Autos, Broadcasting, Department Stores, Gambling, Leisure, Lodging, Packaging, Personal Services, Shoes, Restaurants, Rubber, Plastics, Textiles, and all such consumer aimed enterprises.
My subject today is a mid-cap personal services funeral company named, Service Corp International. Its trading ticker symbol is SCI. This is my first-ever report on Service Corp International. Here goes...
Service Corp International is a personal services company that provides funeral and cemetery services and products from its locations throughout the United States and Canada.
The company segments its operations into funeral service and cemetery business functions. At its funeral service locations, Service Corp. provides all professional services, facilities, vehicles, and merchandise related to funerals and cremations.
Cemetery locations provide cemetery property, memorial markers, and graveyard services to customers. Service Corp. derives the majority of its revenue from its funeral locations, while the cemetery division also generates a significant amount of the company's total income.
Geographically, the company gets a major share of revenue from the United States.
As of December 31, 2019, it owned and operated 1,471 funeral service locations; and 482 cemeteries, including 290 funeral service/cemetery combination locations covering 44 states, 8 Canadian provinces, the District of Columbia, and Puerto Rico.
The company was founded in 1962 and is headquartered in Houston, Texas.
I use three key data points to gauge dividend equities or funds like Service Corp International (SCI):
(1) Price
(2) Dividends
(3) Returns
Those three basic keys best tell whether a company has made, is making, and will make money.
SCI Price
SCI's price per share closed at $39.80 yesterday. A year ago their price was $42.73. Price fell $2.93 or just over 6.85% last year.
Assuming SCI's stock trades in the range of $30 to $45 this next year, its recent $39.80 price might rise by $2.80 to reach $42.00 by May 28, 2021.
SCI Dividends
SCI's most recent declared quarterly dividend was $0.19 payable June 12th That $0.19 Q dividend equates to $0.76 annually and yields 1.91% at Yesterday's $39.80 share price.
SCI Gains?
Adding the $0.76 annual estimated dividend to my $2.20 optimistic estimate of Service Corp International's price upside shows a $2.96 potential gross gain, per share, to be reduced by any costs to trade those shares.
Put little under $1,000.00 today in Service Corp International shares at their $39.80 price, buys 25 shares of SCI stock.
A $10 broker fee paid half at purchase and half at sale could cost $0.40 per share.
Subtract that $0.40 brokerage cost from my estimated $2.96 gross gain per share results in a net gain of $2.55 X 25 shares = $63.75 for a 6.4% net gain on a $995.00 investment.
Service Corp International shows a possible 6.4% net gain including a 1.91% dividend yield. It could be more, it could be less.
The above speculation is based on past performance and supposition. Only time and money invested will tell if Service Corp International is worth it.
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, ...
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