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Smith & Wesson Brands Inc (SWBI) is a U.S.-based leader in firearm manufacturing.

It operates under one reportable segment: Firearms, which includes firearms distribution and manufacturing services.

The company manufactures handguns, long guns, sporting rifles, shooting gear, and suppressor products.

The firm's brand portfolio consists of Smith and Wesson, M&P, Thompson/Center Arms, Performance Center, and Gemtech; which are used for defense, law enforcement, hunting, and sporting purposes.

The company operates internationally, with the majority of income generated by the U.S. market from its handgun products.

Smith & Wesson Brands, Inc. was founded in 1852 and is based in Springfield, Massachusetts.

Three key data points gauge Smith & Wesson or any dividend paying firm.

The key three are:

(1) Price

(2) Dividends

(3) Returns

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

SWBI Price

Over the past year, SWBI’s share price rose about 18.4% from $12.21 to $14.96 as of Wednesday’s market close. In the past couple of years the company’s share price has never been less than $4.30 or more than $39.41.

If Smith & Wesson shares trade in the range of $10.00 to $20.00 this next year, their recent $14.96 share price might rise by $2.04 to $17.00 in a year. Of course, SWBI price could also drop about the same $2.04 estimated amount, or more.

My $2.04 upside estimate is $1.00 under the median of 1yr Targets set by two analysts covering Smith & Wesson for brokers.

SWBI Dividend

Smith & Wesson shows quarterly variable dividends paid since January 2021. The most recent $0.13 Q dividend was declared June 20th for shareholders of record July 11th and paid July 25th. A forward looking $0.52 annual dividend yields 3.48% at Wednesday’s closing price.

SWBI Returns

To put it all together, a $2.54 estimated one year gross gain per share shows up when adding SWBI’s  $0.52 estimated annual dividend to the estimated price upside of $2.02, equalling a $2.54 gross gain per share.

A little under $1000 buys us 67 shares at the $14.96 share price.

A $10 broker fee (if charged), paid half at purchase and half at sale, might take about $0.15 per share out of the $2.54 annual estimated gross-gain to give us a net gain of $2.39 X 67 shares = $160.13 for about a 16% estimated net gain for the year.

Furthermore, the $34.80 annual dividend income from $1K invested is over 2 times more than SWBI’s $14.96 single share price. By these numbers, Smith & Wesson may be an ideal dividend dog.

You might choose to pounce on Smith & Wesson It is a 172 year-old dividend-paying Massachusetts-based firearm firm with almost a 4 year record paying quarterly dividends.

The exact track of SWBI 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.

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