Current Report: Star Group (SGU)

Star Group LP, known by the ticker symbol SGU, is a Small-cap Oil and Gas firm, operating in the Utilities business sector. This is my first-ever report on SGU for this Viital portfolio, or any of my of my previous 6 portfolios.

Star Group LP is a U. S based company engaged in providing home heating products and services to residential and commercial customers. 

It offers heating and air conditioning equipment, as well as home security and plumbing services. 

The company also sells diesel fuel, gasoline, and home heating oil.

Kestrel Heat, LLC operates as the general partner of the company. 

The company was formerly known as Star Gas Partners, L.P. and changed its name to Star Group, L.P. in October 2017. 

Star Group, L.P. was incorporated in 1995 and is based in Stamford, Connecticut.

Three key data points gauge any dividend equity or fund such as Star Group LP (SGU).

(1) Price

(2) Dividends

(3) Returns

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

SGU Price

Star Group’s price per share was $9.46 as of Friday's market close. One year ago its price was $11.34. Therefore, SGU’s share price fell $1.88 or about 16.6% in the past year. 

If SGU’s stock trades in the range of $9.00 to $12.00 this next year, its recent $9.46 share price might rise by $0.54 to reach $10.00 by June 20, 2023. My $0.54 upside estimate is $0.01 under the average annual price increase of SGU shares over the past ten years.
 

SGU Dividends

Star Group’s most recently declared quarterly dividend of $0.1525  was paid May 3, 2022 to shareholders on record as of April 22nd.  

SGU has paid Q dividends since February, 2009. The Q dividend has varied from $0.07 as of 2009 to $0.15 paid in May 2022. That  equates to a $0.60 annual payout will deliver a 6.45% annual yield per Friday’s $9.46 share price.
 

SGU Returns

Adding the $0.60 Star Group annual dividend to my estimated one-year price upside estimate of $0.54 shows a $1.14 potential gross gain, per share, to be reduced by any costs to trade SGU shares.  

At yesterday's $9.46 closing price per share, a little over $1000 would buy 106 shares.

A $10 broker fee (if charged) would be paid half at purchase and half at sale and might cost us about $0.09 per share.

Subtract that maybe $0.09 brokerage cost from my estimated $1.14 gross gain estimate per share results in a net gain of $1.05 X 106 shares = $111.30 for a 11.1% net gain including a 6.45% forward looking dividend yield. 

So it is that Star Group LP shows a possible 11.1% net gain including a 6.45% forward-looking dividend yield. 

Over the next year at this time our $1000 investment in Star Group LP shares could generate $64.50 in cash dividends. Of course, a single share of SGU stock bought at yesterday's $9.46 price is almost seven times less more than the dividend income from our $1000.00 investment. 

So, by my dogcatcher ideal, this high time to pick up SGU shares based on their forward looking dividends for the year 2022. The forthcoming annual dividend from $1K invested is $6.8 times greater than Friday’s single share price. Consider yourself alerted. It's a sign. 

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

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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