Current Analysis: Suzano

TM Editors' note: This article discusses a penny stock and/or microcap. Such stocks are easily manipulated; do your own careful due diligence.

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Suzano SA (SUZ) produces and sells pulp and a variety of paper products.

The company organizes itself into two segments based on product type: Pulp and Paper.

The Pulp segment generates the majority of revenue. The firm's product portfolio includes printing and writing paper, paperboard, diapers, and sanitary napkins.

The company owns forest land and plants in Brazil, where it harvests timber and turns the timber into pulp and paper in its plants.

Suzano S.A. was formerly known as Suzano Papel e Celulose S.A. and changed its name to Suzano S.A. in April 2019.

The company was founded in 1924 and is headquartered in Salvador, Brazil.

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

The key three are:

(1) Price

(2) Dividends

(3) Returns

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

SUZ Price

Over the past year, Suzano's share price rose about 10% from $9.22 to $10.15 as of Tuesday’s market close.

If Suzano shares trade in the range of $8.00 to $15.00 this next year, its recent $10.15 share price might rise to $12.00 by next year. Of course, SUZ's price could also drop about the same $1.85 estimated amount or more.

My $1.85 upside estimate is $2.12 under the median of 1-year target estimates from 5 analysts tracking Suzano for brokers.

SUZ Dividend

Suzano has paid Annual variable dividends since August 2006.

Suzano’s most recent A dividend of $0.24 was declared December 1, 2023, for shareholders of record December 8th and the dividend was paid January 18th.

A forward-looking $0.24 annual dividend yields 2.36% at Tuesday’s closing share price.

SUZ Returns

To put it all together, add the Suzano projected annual dividend of $0.24 to the estimated price upside of $1.85 to get a $2.09 estimated gross gain per share for the coming year.

At Tuesday’s $10.15 share price, a little over $1000 would buy 99 shares.

A $10 broker fee (if charged), paid half at purchase and half at sale, could cost us about $0.10 per share.

Subtracting that likely $0.10 brokerage cost from the $2.09 estimated gross gain reveals a net gain of $1.99 X 99 shares = $197.01 for about a 19.5% estimated net gain on the year.

Furthermore, the $23.60 annual dividend income from $1K invested is over 2.3 times more than the $10.15 single share price. By these numbers, SUZ is an ideal dividend dog.

You might choose to pounce on Suzano. It is a 100-year-old dividend-paying Salvador Brazil-based paper and pulp company that has an 18-year track record paying annual variable dividends.

The exact track of Suzano'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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