Image Source: Pixabay
 

Founded in 2000 and is based in Chino, California, Karat Packaging Inc. (KRT) and its subsidiaries manufacture and distribute single-use disposable products in plastic, paper, biopolymer-based, and other compostable forms used in various restaurant and foodservice environs.

The company also distributes food and beverage items, such as syrups, boba tea, and coffee drinks, and provides new product development, design, printing, and logistics services 

Three key data points gauge KRT 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.

KRT Price

Karat's share price decreased about 17.5% from $25.49 to $23.86 over the past year per Monday’s market price.

Three analysts cover the stock.

The median of their one-year price targets estimated a price gain in KRT shares of $7.64 to $31.50 over the coming year.

KRT Dividends

Karat has paid quarterly dividends since November 30, 2022.

The current forward-looking annual $1.80 dividend yields 7.54% per Monday’s $23.86 share price.

The next $0.35 to $0.45 quarterly dividend could be declared in November with payout around the end of that month.

KRT Returns

Putting it all together, a $5.94 estimated gross gain per share shows up when adding Karat’s annual $1.80 dividend to an estimated $4.14 annual price gain.

A little over $1000 invested at the recent $23.86 share price would buy about 42 shares which, multiply the $5.94 estimated gross gain to $248.74 for the coming year.

About one-third of that $249 gain comes from the $75.40 of annual dividends generated from your $1,000 investment.

Besides, the $75.40 annual dividend income from your $1k investment is over 3 times greater than the recent $23.86 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.)

Therefore, you may choose to pounce on Karat Packaging Inc to get that current $75.40 annual dividend income that has been paid out over the past near 3 years.

The exact track of Karat’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.

More By This Author:

Current Report: Global Ship Lease Inc.
Stock Analysis: Star Group
Current Report: Manila Electric