Daily Stock Pick: One Liberty Properties
I'm now looking for a second real estate sector representative for my new Ivy portfolio.
That real estate sector includes nine industries all related to real property ownership. Like: general real estate; Real Estate services; and seven varieties of real estate investment trusts, or REITs.
Today I'm reviewing a small-cap diversified REIT, named One Liberty Properties Inc. Its trading ticker symbol is OLP.
One Liberty Properties Inc is a self-administered and self-managed real estate investment trust. It acquires, owns and manages a geographically diversified portfolio of retail, industrial, flex, health and fitness, and other properties.
Many of these properties are subject to long term net leases under which the tenant is typically responsible for the property's real estate taxes, insurance, and ordinary maintenance and repairs. Many of these properties are subject to long term net leases under which the tenant is typically responsible for the property's real estate taxes, insurance, and ordinary maintenance and repairs.
The company was incorporated in Maryland in 1982 and is headquartered in Great Neck, New York.
I use three key data points to gauge the value of any dividend equity like One Liberty Properties Inc :
(1) Price
(2) Dividends
(3) Returns
Besides those three, several other keys will finally unlock an equity or fund in which to invest.
Those first three primary keys, however, best tell whether a company has made, is making, and will make money.
OLP Price
One Liberty's price per share closed at $25.96 yesterday. A year ago its price was $25.85. So price rose $0.11 per share last year, or 0.425%.
Assuming One Liberty's stock trades in the range of $20 to $30 next year, One Liberty's recent $25.96 price could move up by $1.04 and grow to $27.00 by early-January, 2020.
OLP Dividends
One Liberty's most recent quarterly dividend was $0.45 declared December 6th and paid January 4th.
That $0.45 quarterly stipend equals an annual payout of $1.80 yielding 6.9% at yesterday's $25.96 closing price.
Gains For OLP?
Adding the $1.80 annual estimated dividend to my estimated $1.04 annual price upside estimate for One Liberty Properties Inc shows a $2.84 potential gross annual gain, per share, which will be reduced by costs to trade those shares.
Just over $1,000.00 invested today at the $25.96 recent price would buy us 39 OLP shares.
A $10 broker fee paid half at purchase and half at sale costs $0.26 per share.
Subtract that $0.26 brokerage cost from the estimated $2.84 gross annual gain leaves a net gain of $2.58 X 39 shares
= $100.62
for about 10% net gain on a $1,012.44 investment.
Therefore, One Liberty Properties Inc whose trading ticker symbol is OLP, now shows a possible 10% net gain including a 6.9% dividend yield.
Two brokers cover this stock:
Both say "hold" your OLP shares.
Therefore, you can look at One Liberty Properties Inc and see it has made money, is making money, and could rise to net a 10% annual gain including that 6.9% estimated 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 determine if One Liberty Properties Inc is worth your time and money.