Current Report: Sumitomo Forestry

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Sumitomo Forestry Co Ltd (SMFRF) is a diversified Japanese company that focuses on timber and building materials as well as residential construction.

The company's timber business is one of Japan's leading suppliers of timber and also provides building and structural materials such as flooring and doors. It also constructs custom-built single-family housing projects around Japan that use the company's timber materials and design.

Those two business units provide the majority of the company's revenue. Sumitomo Forestry operates timber and exporting businesses in Southeast Asia, Australia, and North America. It is also involved in forestry management, as it owns forests around Japan and Southeast Asia.

The company was founded in 1691 and is headquartered in Chiyoda-ku, Japan.

Three key data points gauge Sumitomo 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.

SNFRF Price

Sumitomo’s share price increased about 12.25% in the past year from $27.77 to $31.17 as of Thursday’s market close.

In the past 2 years, the company’s share price has ranged from $22.68 to $48.00, which was Sumitomo’s all-time high price reached on October 4, 2024.

Should the company conform to the average one-year price gain achieved over the past year, the price could grow from $3.83 to $35.00 in the next year.

SMFRF Dividend

Sumitomo has paid variable semi-annual dividends since December 6, 2011. The company’s most recent SA dividend of $0.51 was declared February 14th, 2024, for shareholders of record prior to December 27, 2024, and the payout is due March 3rd. A forward-looking annual dividend of $1.18 yields 3.79% per Thursday’s closing price.

SMFRF Returns

Putting it all together, a $5.01 estimated gross gain per share shows up by adding Sumitomo’s annual $1.18 dividend to the estimated $3.83 annual price gain, totaling that $5.01 gross amount.

A little over $1000 buys 32 shares at Wednesday’s $31.17 share price.

A $10 broker fee (if charged), collected half at purchase and half at sale, might take about $0.31 per share out of the $5.01 gross-gain to give us a $4.70 net amount per share to multiply by 32 shares, to equal $150.40 for over a 15% estimated net gain on the year.

Furthermore, the $37.90 annual dividend income from $1k invested in SMFRF is  $6.73 greater than the single-share price. By these numbers, Sumitomo Forestry Co Ltd could be an ideal dividend dog.

Therefore, you may choose to pounce on SMFRF as a 334-year-old semi-annual dividend-paying forester and builder with a 14-year dividend record.

The exact track of Sumtomo’s future price and dividend 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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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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