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

WH Group Ltd (WHGLY) is a holding company and the world’s largest vertically integrated producer of pork and related packaged meat products. Its revenue is mainly derived from activities undertaken by its China and US operations, which are respectively via 70.3 %-owned Henan Shuanghui Investment & Development Co., or Shuanghui, and wholly-owned Smithfield Foods Inc.

In the US, its key packaged meats brands, in which it has an 8% market share, include Nathan’s hot dogs, Armour, John Morrell, and Curly’s, while in China, products are mainly under the Shuanghui brand, where it also has a 32% market share.

We expect the company’s operating profit to be split almost equally between the US and China going forward with a small contribution from Europe.

The company was founded in 1958 and is headquartered in Kowloon, Hong Kong.

Three key data points gauge WH Group 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.

WHGLY Price

Over the past year, WH Group’s share price rose about 21% from $11.46 to $13.88 as of Thursday’s market close.

If WH Group shares trade in the range of $10.00 to $20.00 this next year, its recent $13.88 share price might rise to $15.00 by next year. Of course, WH Group’s price could drop about the same $1.12 estimated amount or more.

My annual upside estimate of $1.12 however, is $1.30 below the past year's average upside for WH Group share prices.

WHGLY Dividend

WH Group has paid variable semi-annual dividends since June 2016. WH Group’s most recent SA dividend of $0.64 was declared on April 15th for shareholders of record May 15h and the payout is to be made on June 10th

A forward-looking $0.77 annual dividend yields 5.55% at Thursday’s $13.88 share price.

WHGLY Returns

To put it all together, add the WH Group's estimated annual dividend of $0.77 to the estimated price upside of $1.12 to find a $1.89 estimated gross gain for the coming year.

At Thursday’s $13.88 price, a little under $1000 would buy 72 shares.

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

Subtracting that likely $0.14 brokerage cost from the $1.89 gross gain reveals a net gain of $1.75 X 72 shares = $126.00 for a 12.6% estimated net gain on the year.

You might choose to pounce on WH Group Ltd It is a 66 year-old dividend paying HongKong-based food products company.  Furthermore, the estimated $55.50 annual dividend income from $1k invested just about 4 times greater than WH Group’s recent $13.88 share price.

The exact track of WH Group’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.

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