CSR Limited Has Goods To Build Australia/NZ
This week's slot in my Safari portfolio is reserved for the basic materials sector.
That sector includes thirteen industries all tied to the mining or manufacturing of basic commodities. The Basic Materials Industries include: agricultural inputs, aluminum; building materials, chemicals, coal, copper, gold, industrial metals, lumber & wood, paper, silver, specialty chemicals, and steel.
Today I'm reviewing a building materials firm named CSR Limited. It's trading ticker symbol is CSRLF.
CSR Limited manufactures and supplies building products in Australia and New Zealand. It provides insulation solutions, panel systems, roof tiles and other building products.
The company operates through Building Products, Glass, Aluminum, and Property segments. It was incorporated in 1887 and is headquartered in North Ryde, Australia.
I use three primary keys to measure dividend equities or funds like SCSR Limited (CSRLF):
(1) Price
(2) Dividends
(3) Returns
After those three, I'll use four more keys to finally unlock an equity or fund in which to invest.
Those first three keys best test whether the company has made, is making, and will continue to make money.
CSRLF Price
CSR Limited's price at Monday's market close was $3.69 per share. The company has some positive price momentum. A year ago its price was $3.20. So it's a gained $0.49 per share in the past year. Can CSRLF do as well in the coming year? If it does, its price will increase from $3.69 to $4.18 per share or about 13% .
CSRLF Dividends
CSR Limited's most recent semi-annual dividend was $0.1037 declared in November and paid December 12th.
The company has paid a variable semi-annual dividend since December, 2010.
CSRLF's annual dividend for 2018 is estimated as $0.20 payable in June and December at $0.10.
The yield from a $0.20 dividend at Monday's $3.69 price was 5.4%.
Gains For CSRLF?
Adding the $0.20 dividend to the $0.49 estimated price gain (to repeat last year's) shows a potential $0.69 gross gain for the coming year.
But there are costs to trade CSR Limited shares. A $1,000.00 budget for shares at Monday's $3.69 closing price would let us purchase 271 shares.
Those 271 shares will be hit with a broker fee of $5 at purchase and another $5 at sale (for a total of $10 to get any gains). Each share has a brokerage cost of about $0.037
Subtracting that $0.037 brokerage cost from the estimated $0.69 gross gain shows a net gain to 2019 of $0.653 X 271 shares = $176.96 or about a 18% net gain on our $999.99 investment.
Therefore, CSR Limited (whose ticker symbol is CSRLF), shows a possible 18% gain by my simple year over year calculation with a 5.4% dividend baked in.
No analysts cover this stock but its price trajectory since over the past ten years has been upward.
These forward looking numbers are conjecture based on past year performance. The actual results remain to be seen. They could turn out to move lower. More study is required for you to determine if CSR Limited (CSRLF) 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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