Daily Stock Analysis: Amcor

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Amcor PLC, known by the ticker symbol AMCR, is a large-cap packaging and container company, operating in the consumer cyclical business sector. This is my second report on Amcor PLC for this Viital portfolio. I previously discussed it on March 21.

Amcor is a global plastics packaging behemoth, with global sales of USD 12.5 billion in fiscal 2021 following the acquisition of Bemis in 2019. Amcor’s operations span over 40 countries globally and include significant emerging-market exposure equating to circa 20% of sales. Amcor’s capabilities span flexible and rigid plastic packaging, which sells into defensive food, beverage, healthcare, household, and personal-care end markets.

The company sells its products primarily through its direct sales force.

Amcor plc was incorporated in 2018 and is headquartered in Zürich, Switzerland.

Three key data points gauge any dividend equity or fund such as Amcor PLC (AMCR)

(1) Price

(2) Dividends

(3) Returns

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

AMCR Price

AMCR’s price per share was $12.56 as of yesterday's market close. One year ago its price was $12.40. Therefore, AMCR’s share price rose $0.16 or about 1.3% in the past year.

If AMCR’s stock trades in the range of $10.00 to $15.00 this next year, its recent $12.40 share price might rise by $0.44 to reach $13.00 by May 11, 2023. My $0.44 upside estimate is $0.54 more than the median of price upsides gauged by nine analysts tracking AMCR for brokerages.
 

AMCR Dividends

Amcor PLC’s most recently declared a quarterly dividend of $0.12 payable June 14th to shareholders on record as of May 24th.   There’s time to claim this payout if you choose to.

AMCR initiated its $0.12 quarterly dividend on October 10, 2019.  At its current $0.12 Q rate, AMCR’s annual payout of $0.48 is calculated to deliver a 3.82% annual yield per yesterday’s $12.56 share price.
 

AMCR Returns

Adding the $0.48 AMCR annual dividend to the estimated one-year price upside of $0.44 shows a $0.92 potential gross gain, per share, to be reduced by any costs to trade AMCR shares.

At yesterday's $12.56 closing price per share, a little over $1000 would buy 80 shares.

A $10 broker fee (if charged) would be paid half at purchase and half at the sale and might cost us about $0.13 per share.

Subtract that maybe $0.13 brokerage cost from my estimated $0.92 gross gain estimate per share results in a net gain of $0.79 X 80 shares = $63.20 for a 6.3% net gain on a $1,004.80 investment.

So is that Amcor PLC shows a possible 6.3% net gain including a 3.82% forward-looking dividend yield.

Over the next year, this time our $1000 investment in AMCR shares could generate $38.20 in cash dividends. Of course, a single share of AMCR stock bought at yesterday's $12.56 price is over 3 times lower than the anticipated dividend income from our $1000.00 invested.

So, by my dogcatcher ideal, this is a good time to pick up AMCR’s shares based on their forward-looking dividends for the year 2022. The forthcoming annual dividend from $1K invested is currently 4.04 times more than yesterday's single share price. Consider yourself alerted. It's a sign.

All of the estimates above are speculation based on the past history of Amcor PLC (AMCR). 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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