Daily Stock Analysis: STORE Capital (STOR)
STORE Capital Corp., goes by the ticker symbol STOR and is a mid cap member of the real estate sector as a diversified real estate investment trust. This is my first ever report on STORE Capital Corp. for this Vista folio or any of my previous collections.
STORE Capital Corp. is a real estate investment trust involved in the acquisition and management of single-tenant operation real estate, or STORE, properties across the United States.
STORE Capital primarily leases facilities at which a company operates its business and generates sales to middle-market and large businesses through long-term agreements.
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Most of STORE's revenue comes from its service sector customers, which include, notably, restaurants, movie theaters, health clubs, early childhood education centers, and furniture stores. A sizable percentage of STORE's total real estate portfolio is comprised of restaurant and industrial locations.
Specifically, properties located in Texas, Illinois, and Georgia make up a large number of STORE's investments.
STORE Capital is one of the largest and fastest-growing net-lease REITs and owns a large, well-diversified portfolio that consists of investments in more than 2,500 property locations.
It is headquartered in Scottsdale, Arizona.
Three key data points gauge dividend equities or funds like STORE Capital Corp. (STOR):
(1) Price
(2) Dividends
(3) Returns
Those three basic keys best tell whether any company has made, is making, and will make money.
STOR Price
STOR's price per share closed at $36.02 yesterday. One year ago its price was $24.91.Thus, price per share grew over 44.6% year over year as it recovered from the COVID doldrums.
Should STOR's stock trade in the range of $22 to$42.00 this next year, its recent $34.02 price might rise by $2.38 to reach $38.40 by June 8, 2022. My estimate corresponds with the average annual price increase over the past seven years.
STOR Dividends
STORE Capital Corp's most recent quarterly dividend of $0.36 was paid on April 15th and equates to $1.44 annually which will yield 4,00% based on yesterday's $34.02 closing price. STOR has paid quarterly dividends increasing annually since 2015 (6 years.)
STOR Returns
Adding the $1.44 annual STORE Capital Corp. forward-looking dividend to my $2.38 price upside estimate shows a $3.82 potential gross gain, per share, to be reduced by any costs to trade the shares. Say we invest a little over$1000 in STOR at $36.02 per share, we'd buy 28 shares.
A $10 broker fee (if charged) would be paid half at purchase and half at the sale and might cost us about $0.36 per share.
Subtract that maybe $0.36 brokerage cost from my estimated $3.62 gross gain per share results in a net gain of $3.46 X 28 shares = $96.88 for a 9.68% net gain on a $1,008.56 investment.
So it is that STORE Capital Corp. shows a possible 19.7% net gain including a 4% forward estimated dividend yield.
Over the next year at this time, a $1000 investment in STOR would generate $40.00 in cash dividends. And a single share bought at yesterday's closing price was $36.02! So, if STOR is your kind of diversified real estate investment trust, STORE Capital Corp.'s share price is about $4.00 under the expected annual dividend income from $1,000 invested. This suggests that now is the time to add STORE Capital Corp. (STOR) to your stock holdings. Do so before the price exceeds the dividend income from$1K invested.
All of the estimates above are speculation based on the past history of STORE Capital Corp. (STOR). Only time and money invested in this stock will determine its true worth.
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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