BAE Systems For Defense, Aerospace, & Security

The Industrials sector includes twenty-three industries all related to designing, fabricating and servicing stuff we want and use. The industrials industries range from aerospace and defense to waste management with all the transportation, business services, and equipment required in between.

Today I'm reviewing a large-cap United Kingdom based aerospace and defense firm.

It's name is BAE Systems Plc.

It's trading ticker symbol is BAESF. This stock has improved its prospects slightly since I last reported on it May 9th.  

BAE Systems PLC. engages in the design, development, manufacture, and support of defense and aerospace systems used in the air, on land, at sea, and in space.

BAE Systems operates in five segments: Electronic Systems; Cyber & Intelligence; Platforms & Services (US); Platforms & Services (UK); Platforms & Services (International).

BAE Systems plc was incorporated in 1979 and is based in London, the United Kingdom.

I use three key data points gauge the value of any dividend equity or fund like BAE Systems plc: 

(1) Price

(2) Dividends

(3) Returns

After those three, four more keys will finally unlock an equity or fund in which to invest. 

No matter what, it's the first three primary traits that best tell whether a company has made, is making, and will make money. 

BAESF Price

BAE's price was $8.55 per share at yesterday's market close. Last July its price was $7.99 for a gain of $0.56 per share in the past year.  

Assuming BAE's price will continue to trade in the range of $7 to $10 next year, its price could grow another $0.56 from $8.55 to $9.11 by July 6, 2019. 

BAESF Dividends

BAE's most recently declared semi-annual dividend was $0.1846 per share paid June 1st. Their Semi-annual dividend equates to an annual 4.04% yield at yesterday's $8.55 closing stock price.  

Gains For BAE?

BAE's $0.56 estimated year over year price gain plus an anticipated annual dividend of $0.30 makes a projected gross annual gain of $0.86 per share, which will be reduced by the costs to trade those shares.  

A little over $1,000.00 invested today at the $8.55 price buys 117 shares. 

A $10 broker fee paid half at purchase and half at sale subtracts $0.09 per share.

Taking that $0.09 brokerage cost out of the estimated $0.86 gross gain per share leaves a net gain of $0.77 X 117 shares 

= $90.09

or a  9% potential net gain on a $1.000.35 investment.

 BAE Systems plc. (whose ticker symbol is BAESF), now shows a possible 9% net gain including a 4.04% dividend yield. 

No analysts cover this stock:

So we'll just have to go with my $9.11 year over year target.

Y Charts has not yet rated BAESF for an overall "Y" rating. Y Charts also has "insufficient data" for a Value score. And YCharts has "insufficient data" for a Fundamental reading. A Historic Valuation score for BAESF also has insufficient data for Y Charts.

You could look at all those numbers like this: BAE Systems plc has made money, is making money, and could net a 9% net gain next year including a 4.04% annual dividend yield. It could be more, it could be less.

The above speculation is conjecture based on past year performance. Actual results remain to be seen. They could turn out to be far higher or lower. More study is required for you to determine if BAE Systems plc is worth your time and money.

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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