Brady Safety Products Identify And Protect

This week I'm seeking a high-yield and growing stock from the industrials sector. 

That 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 mid-cap security and protection services firm named Brady Corporation. Its trading ticker symbol is BRC.

Brady Corp is a manufacturer and supplier of identification solutions and workplace safety products that identify and protect premises, products and people in the United States and internationally.

Its product offering includes identification solutions (IDS) and workplace safety (WPS) products. The IDS segment offers safety signs, pipe markers, labeling systems, spill control products, and lockout/tagout devices for facility identification and protection.The WPS segment provides workplace safety and compliance products.

These segments serve customers in various industries, such as industrial and electronic manufacturing, healthcare, chemical, oil, gas, automotive, aerospace, defense, mass transit, electrical contractors, telecommunications, and others through distributors, direct sales, catalog marketing, and digital channels. 

Brady Corporation was founded in 1914 and is headquartered in Milwaukee, Wisconsin.

I use three key data points to gauge the value of any dividend equity or fund likeBrady Corporation (BRC): 

(1) Price

(2) Dividends

(3) Returns

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

But those first three primary keys, best tell whether a company has made, is making, and will make money. 

BRC Price

Brady's price per share was $39.45 at yesterday's market close. A year ago its price was $32.65 for a gain of $6.80 per share.  

Assuming Brady's price will trade in the range of $35 to $45 next year, perhaps that $6.80 gain could be realized in the coming year and move Brady's current $39.45 price to $46.25 by late-August, 2019. 

BRC Dividends

Brady's most recent quarterly dividend was $0.2075declared May 23rd and paid July 31st. That dividend has increased a quarter-cent bout every two years.

At it's most recent quarterly pay rate, Brady's 2018 annual dividend is calculated at $0.83 yielding 2.1% at yesterday's closing $39.45 price.

Gains For BRC?

Adding the $0.83 estimated annual dividend to the $6.80 year over year price gain for Brady makes a $7.63gross annual per share gain, which will be reduced by costs to trade the shares.  

A little under $1,000.00 invested today at the $57.43 recent price buys 25 Brady Corporation (BRC) shares. 

A $10 broker fee paid half at purchase and half at sale costs $0.40 per share, subtracting that $0.40 brokerage cost from the estimated $7.63 gross gain leaves a net gain of $7.23 X 25 shares = $180.75 or an 18.08% net gain on a $986.25 investment.

Therefore, Brady Corporation, whose trading ticker symbol is BRC, now shows a possible 18.08% net gain including a 2.1% dividend yield. 

Five brokers cover this stock:

Two say "buy" BRC.

Two say BRC is a stock to "hold".

One says BRC will "underperform" its peers.

Thus, the analyst consensus recommendation number is 2.4 or "outperform".

The median price target set by those five brokers is $3.85 under the $46.25 year over year price target I named. 

Y Charts also has data on BRC. Y Charts has rated BRC "neutral" for an overall "Y" rating; it has "average" for a Y Charts value score, and "average" for BRC's fundamental score. Y Charts rated BRC "15.31% over" for aHistoric Valuation score based on a historic $34.21 valuation per share.

So, you could look at all those various numbers this way, Brady Corporation (BRC). has made money, is making money, and could net an 18.08% annual gain including a 2.1% dividend yield. It could be more, it could be less.

The above speculation is based on past year performance. Actual results remain to be seen. Those results will determine if Brady Corporation (BRC) 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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