Current Report: Sundrug

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Sundrug Co Ltd (SDGCF) is a Japanese company that operates and manages drugstores.

Its activities are divided into three business divisions including Drugstore business, Dispensing pharmacy business, and Discount store business.

The company also offers necessities such as foods, cosmetics, household appliances, clothing items, car goods, sports and leisure goods, alcoholic beverages, and kerosene through its discount store, Direx.

The company was founded in 1957 and is headquartered in Fuchu, Japan.

Three key data points gauge Sundrug 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.

SDGCF Price

Sundrug’s price grew about 15.5% in the past year from $24.40 to $28.18 as of Wednesday’s market close.

In the past 3 years the company’s share price has ranged from $21.34 to $28.18. However, the all-time high price of $51.64 was reached April 20th, 2018.

Should Sundrug  conform to  the average $1.83 of one year price gains charted over the past three years, its share price could grow to $30.00 in the coming year.

SDGCF Dividends

Sundrug has paid variable semi-annual dividends since December 2009.

The company’s most recent SA dividend of $0.43 was declared last May 15th for shareholders of record prior to this March 28th, and the payout is due near the end of June.

So there’s a day to book this payout. The forward-looking annual dividend of $0.85 yields 3.03% per Wednesday’s closing price.

SDGCF Returns

Putting it all together, a $2.67 estimated gross gain per share shows up by adding Sundrugs annual $0.85 dividend to the estimated $1.82 estimated annual gross price gain, totaling that $2.67 gross gain amount.

A little under $1000 buys 35.5 shares at Wednesday’s $28.18 share price.

So, a $10 broker fee (if charged), collected half at purchase and half at sale, might take about $0.28 per share out of the $2.67 gross-gain to give us a $2.39 net amount per share to multiply by 35.5 shares. That result comes to $84.85 for about an 8.5% estimated net gain in the coming year.

Furthermore, $30.30 in annual dividend income from your $1,000 investment in Sundrug Co Ltd is about 7.5% greater than the $28.18 single-share price. Based on these numbers, Sundrug could be considered an ideal dividend dog by my dogcatcher standards.

Therefore, you may choose to pounce on Sundrug Co Ltd as a 68-year-old semi-annual dividend-paying Japanese drug and convenience store company with a 16-year semi-annual dividend payment record.

The exact track of Sundrug’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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