Daily Stock Pick: Americold

This week, I'm looking for the seventh financial services representative of seven for my Ivy portfolio.

That financial sector includes twenty industries ranging from Asset Management to 8 kinds of Banks, Credit, Exchanges, 6 kinds of Insurance, Savings, and all such financial concerns. Today I have a real estate investment trust, however.

Today I'm reviewing a mid-cap real estate investment trust named Americold Realty Trust. Their trading ticker symbol is COLD.

Americold Realty Trust is self-administered and self-managed REIT company which acts as an owner and operator of temperature-controlled warehouses. The company operates warehouses in the US, Australia, New Zealand, Argentina and Canada.

Its operating segments are Warehouse, Third-party managed, and Transportation.

The Warehouse segment provides temperature-controlled warehouse storage and related handling and other services.

In Third-party managed segment, it manages warehouses on behalf of third parties and provide warehouse management services to several food retailers and manufacturers in customer-owned facilities.

In Transportation segment, it manages transportation of frozen and perishable food and other products for customers. Most of the company's revenue comes from US.

Based in Atlanta, Georgia, Americold owns and operates 179 temperature-controlled warehouses, with over 1 billion refrigerated cubic feet of storage.

I use three key data points to gauge dividend-paying equities or funds like Americold Realty Trust:

(1) Price

(2) Dividends

(3) Returns

Besides those three, several other keys will finally unlock an equity or fund in which to invest.

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

COLD Price

Americold's price per share closed at $33.74 yesterday. A year ago its price was $21.24. Price rose $21.49 or near 59% in the past year.

Assuming Americold's stock trades in the range of $24.00 to $36.00 this year, Americold's recent $33.74 price could rise by $1.26 and go to $35.00 by late-July, 2020.

COLD Dividends

Americold's most recent quarterly dividend is $0.20 paid July 15th.

That $0.20 Q payout equates to an annual dividend of $0.80 generating a yield of 2.37% based on yesterday's $33.74 closing price.

Gains For COLD?

Adding the $0.80 annual estimated dividend to my $1.26 estimate of Americold's price upside shows a $2.06 potential gross annual gain, per share, which will be reduced by costs to trade those shares.

Say we pay a little over $1,000.00 today at the $33.74 recent stock price, we'd buy 30 Americold Realty Trust shares.

A $10 broker fee paid half at purchase and half at sale will cost us $0.33 per share.

Subtract that $0.33 brokerage cost from the estimated $2.06 gross annual gain leaves a net gain of $1.73 X 30 shares = $51.90 or a 5.185% net gain on a $1.012.20 investment.

Therefore, Americold Realty Trust whose trading ticker symbol is COLD now shows a possible net gain of 5.185% including a 2.37% dividend yield.

Eight brokers track Americold Realty Trust stock:

Five say "Buy" COLD.

Two say COLD will "Outperform" its peers.

One says "hold"  COLD.

Their consensus score of 1.5 equates to "Outperform."

Now we can look at Americold Realty Trust and see it has made money, is making money, and could net a 5.185% gain including a 2.37% dividend yield. It could be more, it could be less.

The above speculation is based on past year performance. The actual results remain to be seen to learn if Americold Realty Trust is worth your time and money.

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