Image Source: DepositPhotos

Kingfisher (KGFHY) is a home improvement company with over 1,570 stores in eight countries across Europe.

The company operates several retail banners that are focused on trade customers and general do-it-yourself needs. Kingfisher’s main retail brands include B&Q, Screwfix, and TradePoint in the United Kingdom and Castorama and Brico Depot in France.

The U.K. and France are Kingfisher’s largest markets, accounting for 81% of sales. The company is the second-largest DIY retailer in Europe, with a leading position in the U.K. and a number-two position in France.

Kingfisher plc was incorporated in 1982 and is headquartered in London, the United Kingdom

Three key data points gauge Kingfisher or any dividend-paying firm.

The key three are:

(1) Price

(2) Dividends

(3) Returns

Those three basic keys best tell whether any company has made, is making, and will make money.

KGFHY Price

Over the past year, Kingfisher’s share price fell about 4.64% from $6.47 to $6.17 as of Wednesday’s market close.

If Kingfisher’s shares trade in the range of $6.00 to $8.00 this next year, its recent $6.17 share price might rise to $6.70 by next year. Of course, Kingfisher’s price could drop about the same $0.53 estimated amount, or more.

My annual upside estimate of $0.53 however, is in line with the average of Kingfisher’s one year stock price upsides over the past four years.

KGFHY Dividend

Kingfisher PLC has paid variable semi-annual dividends since June 2003. Kingfisher’s most recent SA dividend of $0.2175 was declared March 28th for shareholders of record May 16th and the payout is to be made June 28th.

A forward looking $0.34 annual dividend yields 4.98% at Wednesday’s $6.17 share price.

IP Returns

To put it all together, add the Kingfisher PLC estimated annual dividend of $0.34 to the estimated price upside of $0.53 to find a $0.87 estimated gross gain for the coming year.

At Wednesday’s $6.17 price, a little under $1000 would buy 162 shares.

A $10 broker fee (if charged), paid half at purchase and half at sale, would cost us about $0.06 per share.

Subtracting that likely $0.06 brokerage cost from the $0.87 gross gain reveals a net gain of $0.81 X 162 shares = $131.22 for about a 13% estimated net gain on the year.

You might choose to pounce on Kingfisher PLC. It is a 42 year-old dividend paying London England-based home improvement company.  Furthermore, the estimated $49.80 annual dividend income from $1k invested is nearly 8 times greater than Kingfisher’s recent $6.17 share price.

The exact track of Kingfisher PLC’s ongoing future price and dividend will entirely be determined by market action.

Remember the true value of any stock is best realized through personal ownership of shares.

More By This Author:

Current Analysis: International Paper
Current Analysis: Hyundai Motor
Current Analysis: Barratt Development (BTDPY)