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Universal Corp (UVV) is a global leaf tobacco supplier. The company procures leaf tobacco from farmers, processes it, and sells it to companies that manufacture consumer tobacco products.

Universal does not manufacture or sell any consumer products itself. The company's segments include Tobacco Operations and Ingredients Operations. It generates maximum revenue from the Tobacco Operations segment.

Geographically, it derives a majority of its revenue from the United States.

The company was founded in 1886 and is headquartered in Richmond, Virginia.

Three key data points gauge Universal Corp 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.

UVV Price

Share price dropped 10.5% over the past year from $63.32 to $56.39, as of Tuesday’s market close.

In the past 3 years, the company’s share price has rarely been less than $44.00 nor more than $67.40. Its all-time high price of $83.35 was reached on February 8, 2017.

If shares trade in the range of $46.00 to $64.00 this next year, the recent $56.39 share price might grow to $59.40. Of course, UVV shares could also drop about the same $3.01 estimated amount or more.

My $3.01 price upside estimate is based on the average UVV annual price gains of the past four years.

UVV Dividend

Universal Corp has paid variable quarterly dividends since September 1985. The company’s most recent Q dividend of $ 0.81 was declared on November 7th to shareholders of record prior to January 13th.  The dividend is payable on February 3rd.

A forward-looking annual dividend of $3.24 yields 5.75% per Tuesday’s closing price.

UVV Returns

Putting it all together, a $6.25 estimated annual gross gain per share shows up by adding Universal’s annual $3.24 dividend to the estimated price upside of $3.01, which totals that $6.25 gross gain.

A little over $1000 buys 18 shares at Friday’s $56.39 share price.

A $10 broker fee (if charged), collected half at purchase and half at sale, might take about $0.56 per share out of the $6.25 gross gain to give us a net gain of $5.69 X 18 shares = $102.42 for about a 10% estimated net gain on the year.

Furthermore, the $57.50 annual estimated dividend paid from $1k invested in UVV is $1.11 greater than the $56.39 single-share price. Based on these numbers, UVV may be an ideal consumer staple dividend dog.

Therefore, you might choose to pounce on Universal Corp. It is a soon-to-be 139-year-old variable quarterly dividend paying tobacco and specialty plant-based ingredient concern with an 8-year dividend record.

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

Remember the best measure of stock value is through direct ownership of shares.

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