Current Report: Kingfisher PLC

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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.

Kingfisher (KGFHY) is a home improvement company with over 1,570 stores in eight countries across Europe.

The company operates several retail banners that are focused on trade customers and general do-it-yourself needs. Kingfisher’s main retail brands include B&Q, Screwfix, and TradePoint in the United Kingdom and Castorama and Brico Depot in France.

The U.K. and France are Kingfisher’s largest markets, accounting for 81% of sales. The company is the second-largest DIY retailer in Europe, with a leading position in the U.K. and a number-two position in France.

Kingfisher plc was incorporated in 1982 and is headquartered in London, the United Kingdom.

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

The key three are:

(1) Price

(2) Dividends

(3) Returns

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

KGFHY Price

Over the past year, Kingfisher’s share price went up 62.7% from $4.88 to $7.94 as of Wednesday’s market close.

In the past 10 years, the company’s share price has rarely been less than $2.90 nor higher than $11.92 Kingfisher’s all-time high price reached $14.85 in May 2014.

If shares trade in the range of $5.00 to $10.00 this next year, the recent  $7.94 share price might grow to $9.30. Of course, KGFHY's share price could also drop about the same $1.36 estimated amount or more.

My $1.36 price upside estimate is based on the average KGFHY one-year price gains for the past two years.

KGFHY Dividend

Kingfisher PLC has paid variable semi-annual dividends since June 2003. The company’s most recent SA dividend of $0.10 was declared September 18th for shareholders of record October 11th and the payout is due September 20th.

The resulting $0.32 Annual dividend yields 4.03%, as of Wednesday’s closing price.

KGFHY Returns

Putting it all together, a $1.68 estimated annual gross gain per share shows up by adding Ford’s annual $.32 dividend to the estimated price upside of $1.36, totaling that $1.68 gross gain.

Slightly over $1000 buys 126 shares at Wednesday’s $7.94 price.

A $10 broker fee (if charged), collected half at purchase and half at sale, might take about $0.08 per share out of the $1.68 gross gain to give us a net gain of $1.60 X 126 shares = $201.60 for about a 20% estimated net gain for the year.

Furthermore, the $40.30 annual dividend paid from $1k invested is over 5 times more than the $7.94 single share price. By these numbers, KGFHY might be an ideal dividend dog.

You might choose to pounce on Kingfisher PLC It is a 42-year-old semi-annual dividend-paying London-based european DIY Retailer with a 21-year dividend record.

The exact track of Kinfisher’s future price and dividend will entirely be determined by market action and company finances.

Remember the best measure of stock value is direct 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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