Sirius XM Holdings Inc, known by the ticker symbol SIRI, is a large-cap broadcasting firm, operating in the communication services business sector. This is my second report on SIRI for this Viital stock portfolio. I have last reported on SIRI as a candidate for my eleventh selection for this Portfolio on October 21, 2021.

SiriusXM Holdings is now composed of two businesses: SiriusXM and Pandora. 

SiriusXM transmits music, talk shows, sports, and news via its two satellite radio networks, primarily to consumers in vehicles who pay a subscription fee. The firm’s radios come preinstalled on a wide range of light vehicles in the U.S. and Canada. 

Photo by John McArthur on Unsplash

The firm acquired Pandora Media in February 2019 via an all-stock transaction. Pandora is a streaming music platform that offers an ad-supported radio option and a paid on-demand service. Liberty Media owns 68% of SiriusXM, traded through its Liberty SiriusXM Group tracking stock.

Additionally, it offers satellite television services, which offer music channels on the DISH Network satellite television service as a programming package; Travel Link, a suite of data services that include graphical weather, fuel prices, sports schedule and scores, and movie listings; and real-time traffic and weather services. 

The company was incorporated in 2013 and is headquartered in New York, New York. Sirius XM Holdings Inc. is a subsidiary of Qurate Retail, Inc.

Three key data points gauge any dividend equity or fund such as SiriusXM Holdings (SIRI):

(1) Price

(2) Dividends

(3) Returns

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

SIRI Price

Sirius XM's price per share was $6.18 as of Friday's market close. One year ago its price was $5.80. Therefore SIRI share price rose $0.38 or just over 6.5% in the past year.

If SIRI's stock trades in the range of $5.00 to $8.00 this next year, its recent $6.18 share price might rise by $1.22 to reach $7.40by January 17, 2023. This estimate is $0.06 above the median of the 1 yr RGPprice estimates from fifteen analysts covering the stock for brokerages

SIRI Dividends

SiriusXM Holdings' most recent quarterly dividend of$0.022 was paid to shareholders November 29th to those of record November 4th. That Q dividend payout, carried forward, amounts to $0.09 annually and yields 1.42% per Friday's $6.18. closing price. 

SiriusXM Holdings (SIRI) has paid regular quarterly dividend payouts since November 30, 2016. That stretch saw 5 years last November.

SIRI Returns

Adding the $0.09 annual estimated RGP forward-looking dividend to a little over the median of fifteen analysts one-year share price upside estimates at $1.22 shows a $1.31 potential gross gain, per share, to be reduced by any costs to trade SIRI shares.  

At Friday's $6.18 price per share, a little over $1000 would buy 162 shares.

A $10 broker fee (if charged) would be paid half at purchase and half at sale and might cost us about $0.06 per share.

Subtract that maybe $0.06 brokerage cost from my estimated $1.31 gross gain per share results in a net gain of $1.25 X 162 shares = $202.50 for a 20.25% net gain on a $1,001.16 investment.

So it is that SiriusXM Holdings Inc (SIRI) shows a possible 20.25% net gain including a 1.42% forward estimated dividend yield. 

Over the next year at this time, a $1000 investment in SiriusXM Holdings Inc (SIRI) could generate $14.20 in cash dividends alone. Note that a single share of SIRI stock bought at yesterday's closing price was $4.18. Therefore, SIRI's share price is just under half the dividend income from $1000.00 invested. So, by my dogcatcher ideal, now is a good point to pickup SiriusXM Holdings Inc(SIRI)shares. The estimated next-year dividend from $1K invested is nearly 2.3 times higher than SIRI's single share price. Consider yourself alerted. It's a sign!  

All of the estimates above are speculation based on the past history of SiriusXM Holdings Inc (SIRI). Only time and money invested in this stock will determine its market value.