Daily Report: ABB Ltd (ABB)

ABB Ltd, known by the ticker symbol ABB, is a large cap Electrical Equipment and Parts Firm, noted for Robotics, operating in the Industrials business sector. This is my first ever report on ABB for this Viital stock portfolio or any of my previous six portfolios.

ABB Ltd is a global supplier of electrical equipment and automation products. 

Entrepreneur, Idea, Competence, Vision, Target

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Founded in the late 19th century, the company was created out of the merger of two old industrial companies--ASEA and BBC--and is now called Asea Brown Boveri Group, or ABB. 

The company is the number-one or number-two supplier in all of its core markets and the number-two robotic arm supplier globally. 

In automation, it offers a full suite of products for both discrete and process automation as well as industrial robotics.

ABB Ltd has a strategic collaboration with IBM. 

ABB Ltd was founded in 1883 and is headquartered in Zurich, Switzerland.

Three key data points gauge any dividend equity or fund such as ABB Ltd (ABB):

(1) Price

(2) Dividends

(3) Returns

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

ABB Price

ABB's price per share was $38.10 as of Friday's market close. One year ago its price was $30.04. Therefore ABB's share price rose $8.06 or nearly 27% in the past year.

If ABB's stock trades in the range of $28.00 to $42.00 this next year, its recent $38.10 share price might rise by $2.15 to reach $40.25 by January 10, 2023. This estimate is in line with the median of 1 year price estimates from 5 analysts tracking ABB for brokerages.

ABB Dividends

ABB's most recent annual dividend of  $0.87 will be paid between May 15th and June 15th to shareholders of record on March 29th. That annual dividend, payout yields 2.29% per yesterday's $38.10. closing price. 

ABB Ltd (ABB) has paid variable annual dividend payouts since June 19, 2006. That will come to 16 years in June.

ABB Returns

Adding the $0.87 annual estimated ABB forward-looking dividend to the analyst-estimated share-price increase of $2.15  shows a $3.02 potential gross gain, per share, to be reduced by any costs to trade ABB shares.  

At yesterday's $38.10 price per share, a little under $1000 would buy 26 shares.

A $10 broker fee (if charged) would be paid half at purchase and half at sale and might cost us about $0.38 per share.

Subtract that maybe $0.38 brokerage cost from my estimated $3.02 gross gain per share results in a net gain of $2.64 X 26 shares = $68.64 for a 6.86% net gain on a $990.60 investment.

So it is that ABB Ltd (ABB) shows a possible 6.86% net gain including a 2.29% forward estimated dividend yield. 

Over the next year at this time a $1000 investment in ABB Global Ltd ABB) could generate $22.90 in cash dividends alone. Note that a single share of ABB stock bought at yesterday's closing price was $38.10. Therefore, ABB's share price is over one and one-half times greater than the dividend income from $1000.00 invested. So, by my dogcatcher ideal, now is not a prime time to pick up ABB Ltd (ABB)  shares. The estimated next-year dividend from $1K invested over 1.66 times less than ABB's single share price. Consider yourself alerted. It's a sign!  Wait for ABB's price to drop below $30.

All of the estimates above are speculation based on the past history of ABB Ltd (ABB). 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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