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

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 serves businesses, professionals, management personnel, medical personnel, field sales and service forces, members of the construction industry, real estate brokers and developers, sales and services organizations, specialty trade organizations, manufacturing organizations, and government agencies.

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 Inc 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.

SPOK Price

Over the past year, Spok’s share price nearly doubled from $7.13 to $14.21 as of Wednesday’s market close.

If Spok’s stock trades in the range of $7.00 to $20.00 this next year, its recent $14.21 share price might rise to $15.50 by next year. Of course, Spok’s price could drop about the same $1.29 amount, or more.

My upside estimate of $1.29, however, is in line the one year target price conjured up by the analyst tracking SPOK for brokers.

SPOK Dividend

Spok Holdings Inc has paid variable quarterly dividends since December 21, 2005. SPOK’s most recent Q dividend, payable today, September 8th to shareholders of record August 16th is $0.3125. Its annual dividend payout of $1.25 is projected to yield 8.8% per Wednesday’s closing price.

SPOK Returns

Adding the $1.25 anticipated annual dividend to Spok Holdings Inc’s estimated $1.29 possible price upside, reveals a $2.54 potential gross gain per share for the coming year.

At Wednesday’s $14.21 closing price, a little under $1000 would buy 70 shares.

A $10 broker fee (if charged), paid half at purchase and half at sale, might cost us about $0.14 per share.

Subtracting that maybe $0.14 brokerage cost from my estimated $2.54 gross gain per share makes a net gain of $2.40 X 70 shares = $168.00 or about a 16.8% net gain.

This may be the time to pounce on Spok Holdings Inc shares. But beware, Spok Holdings Inc is a Health Communications systems provider doing business in a highly-diversified professional environment. However, the estimated $88.00 dividend from $1000 invested comes in at just under 6.2 times the recent $14.21 single share price. The choice is yours.

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

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