Current Analysis: Spok Holdings Inc

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Spok Holdings Inc. (SPOK) is a provider of healthcare communications.

It reports three market segments namely Healthcare, Government, and Large enterprise. The company provides paging services and software solutions in the United States and abroad.

It provides services such as Value-Added Services, Advisory Services, Assessment Services, and Adoption Services.

The company was formerly known as USA Mobility, Inc. and changed its name to Spok Holdings, Inc. in July 2014.

Spok Holdings, Inc. was founded in 1986 and is headquartered in Alexandria, Virginia.

Three key data points gauge Spok Holdings 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.

SPOK Price

Over the past year, Spok’s share price rose about 26.5% from $10.86 to $16.12 as of Thursday’s market close.

If Spok shares trade in the range of $6.00 to $20.00 this next year, its recent $16.12 share price might rise to $18.00 by next year. Of course, Spok’s price could also drop about the same $1.88 estimated amount or more.

My $1.88 upside estimate is based on the one-year price target estimated by the analyst tracking the stock. It’s a lower number than the average $5.00 annual gain over those two years.

SPOK Dividend

Spok Holdings has paid variable Quarterly dividends since March 2007. The most recent $0.3125 dividend was declared May 1st for shareholders of record May 23rd and was paid out June 24th.

A forward-looking $1.25 annual dividend yields 7.75% at Thursday’s closing share price.

SPOK Returns

To put it all together, a $3.13 estimated gross gain per share for the next year shows up when adding Spok’s $1.25 annual dividend to the estimated price upside of $1.88.

A little under $1000 buys 62 shares at $16.12 per share.

A $10 broker fee (if charged), paid half at purchase and half at the sale, might take $0.16 per share out of the $3.13 gross gain to reveal a net gain of $2.97 X 62 shares = $184.14 for about an 18.4% estimated net gain on the year.

Furthermore, the $77.50 annual dividend income from $1K invested is just over 4.8 times greater than the $16.12 single share price. By these numbers, Spok Holdings may be an ideal dividend dog.

You might choose to pounce on Spok.  It is a 38-year-old dividend-paying Virginia-based healthcare communications firm with a 17-year track record paying variable quarterly dividends.

The exact track of Spok’s 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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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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