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Founded on July 18, 1961, and headquartered in New York, NY, Mesabi Trust (MSB) collects income, pays expenses and liabilities, then distributes net income to the holders of Trust certificates after providing for those expenses and liabilities, and protecting and conserving the trust assets.

The firm is also engaged in iron ore mining.

Three key data points gauge MSB or any dividend-paying entity, namely:

(1) Price

(2) Dividends

(3) Returns

Those keys also indicate if any company has made, is making, and will make money.

MSB Price

Mesabi’s share price grew 34.3% last year from $25.51 to $34.36 per Tuesday’s market price. One analyst covers the stock but did not set a one-year target.

Historically, however, MSB's share price grew at a $2.72 average increase per year over the past 10 years. Which puts the target price at $37.08.

MSB Dividends

Mesabi has paid variable quarterly dividends since February 1991.

It has declared a quarterly dividend of $0.34 for November, making a forward-looking annual dividend of $1.36 into the new year.

MSB Returns

Putting it all together, a $4.08 estimated gross gain per share shows up when adding MSB’s annual $1.36 dividend to my historic-based estimate of $2.72 annual price gain.

A little over $1000 invested at Tuesday’s $34.36 share price would buy 29 shares which, multiply the $4.08 estimated gross gain to $118.74 for the coming year.

About 25% of that $119 gain comes from an annual $39.60 dividend likely generated from your $1,000 investment.

Furthermore, the $39.60 estimated annual dividend income from $1,000 invested is about 1.15 times greater than the recent $34.36 single-share price.

(A dividend dogcatcher rule is to only buy initial shares of a stock that pay an annual dividend from $1000 invested that is greater than the cost of a single share.)

1.15 is greater than 1.

Therefore, you might choose to pounce on MSB with its alleged dividend payout of about 1.15 times the single share price.

The exact track of MSB’s future share price and dividends will entirely be determined by market action and company finances.

Remember, the best way to track stock performance and dividend payments is through direct ownership of company shares.

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