Current Report: Royal Mail

By Fredrik Arnold

Friday, August 5, 2022 12:07 PM EST

Royal Mail PLC with the ticker ROYMY, is a mid-cap integrated shipping and logistics company operating in the industrials business sector. This is the fifth of five industrials candidates competing for the forty-fourth slot in the Viital folio. It is my first ever report on Royal Mail PLC for my Viital portfolio or any of my previous six portfolios.

Royal Mail PLC is a postal and delivery service company domiciled in the United Kingdom.

The company delivers parcels and letters, produces stamps, and provides marketing services under the Royal Mail and Parcelforce brands.

The company organizes itself into two segments, based on geography: U.K. operations and non-U.K. operations. Royal Mail derives the majority of revenue from U.K. operations, the company's domestic business. Non-U.K. operations principally include operations across Europe and the United States.

Additionally, the company engages in property holdings activities; and provision of facilities management services. It serves consumers, sole-traders, small and medium-sized enterprises, large businesses, retailers, and access operators.

The company was founded in 1516 and is based in London, the United Kingdom.

vehicles traveling on road between buildings during daytime

Image Source: Unsplash

Three key data points gauge any dividend equity or fund such as Royal Mail PLC:

(1) Price

(2) Dividends

(3) Returns

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

ROYMY Price

Royal Mail’s price per share was $6.80 as of yesterday's market close. One year ago it’s price was $13.83. Thus, ROYMy share price fell $6.43 or about 95% in the past year.

If Royal Mail’s stock trades in the range of $5.00 to $12.00 this next year, its recent $6.80 share price might rise by $1.20 to reach $8.00 by next year. My $1.20 upside estimate is $0.14 over the average one-year price increase for the past two years.

ROYMY Dividends

Royal Mail PLC’s most recently declared Semi-Annual dividend of $0.32 is payable September 21st, to shareholders on record as of July 28th.

Since August 15, 2014, Royal Mail PLC has paid variable Semi-Annual dividends. The current forward looking annual dividend of $0.63 equates to an annual yield of 9.34% as of yesterdays $6.80 share price.

ROYMY Returns

Adding the $0.63 estimated Royal Mail annual dividend to my estimated one-year price upside estimate of $1.20 shows a $1.83 potential gross gain, per share, to be reduced by any costs to trade ROYMY shares.

At yesterday's $6.80 closing price, a little over $1000 would buy 147 shares.

A $10 broker fee (if charged) would be paid half at purchase and half at sale and might cost us $0.07 per share.

Subtract that maybe $0.07 brokerage cost from my estimated $1.83 gross gain estimate per share results in a net gain of $1.76 X 147 shares = $258.72, for a 25.8% net gain including a 9.34% forward looking annual dividend yield.

Over the next year our $1K investment in ROYMY shares should generate $93.40 in cash dividends. Of course, a single share of ROYMY stock bought at yesterday's $6.80 price nearly 14 times less than the dividend income from our $1000.00 investment.

So, by my dogcatcher ideal, this a good time to pick up Royal Mail PLC shares based on their forward looking dividends for the year 2022. The forecast annual dividend from $1K invested is 13.74 times more than yesterday’s single share price. Consider yourself alerted. It's a sign. Now’s the time.

All of the estimates above are speculation based on the past history of Royal Mail PLC. Only time and money invested in this stock will determine its market value.

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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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