Computer Services You May Bank On

This week I'm seeking a prestigious and long-term dividend-paying stock from the technology business sector. 

That technology sector has nineteen industries ranging from communication equipment, computers, consumer electronics, and contract manufacturing, to health and information technology and services to internet, scientific instruments, software, solar and all such technological marvels. 

Today I'm reviewing a small-cap information technology services outfit, named Computer Services Inc. Its trading ticker symbol is CSVI

Computer Services Inc. is a customer service company that delivers innovative technology solutions to banks, financial institutions and other businesses nationwide.

It provides processing, maintenance, and support services; software licensing and installation services; professional services; and e-business services, as well as equipment and supply sales. 

The company also offers integrated banking solutions, which include check imaging; cash management; secure Web hosting; e-messaging; teller and platform services; ATM and debit card service and support; payments solutions; risk assessment; network management; and services for regulatory compliance, homeland security, and fraud prevention.

The company was incorporated in 1965 and is headquartered in Paducah, Kentucky.

I use three key data points to gauge the value of any dividend equity or fund like Computer Services Inc (CSVI): 

(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. 

CSVI Price

CSVI's price per share was $51.30 at Friday's market close. A year ago its price was $47.50 for a price rise of $3.90 per share for the year, that's an 8.2% gain. 

Assuming CSVI's price will trade in the range of $44 to $60 next year, CSVI's recent $51.50 price could improve by $4.00 to $55.50 by early-November, 2019. 

CSVI Dividends

CSVI's most recent quarterly dividend was $0.36 declared October 8th and payable December 26th. 

At this most recent $0.36 quarterly rate, CSVI's annual dividend equals $1.44 yielding 2.8% at Friday's closing $51.50 price.

Gains For CSVI?

Adding the $1.44 estimated annual dividend to my estimated $4.00 annual price upside for Computer Services Inc.(CSVI) makes a $5.44 potential gross annual per share gain, which will be reduced by any costs to trade the shares.  

 A little under $1,000.00 invested today at the $51.50 recent price buys 19 Computer Services Inc. (CSVI) shares. 

A $10 broker fee paid half at purchase and half at sale costs $0.53 per share, subtracting that $0.53 brokerage cost from the estimated $5.44 gross annual gain leaves a net gain of $4.91 X 19 shares = $93.29 for a 9.4% net gain on a $978.50 investment.

Therefore, Computer Services Inc. whose trading ticker symbol is CVSI, now shows a possible 9.4% net gain including a 2.8% dividend yield. 

No brokers cover this stock: so we have no buy to sell worker advice and no consensus number or broker price targets to discuss.

Therefore, you may see these speculative numbers this way, Computer Services Inc., whose trading ticker symbol is CSVI, has made money, is making money, and could net a 5% to 10% net annual gain including a 2.8% 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 Computer Services Inc. (CSVI) 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 ...

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