Daily Stock Report: Cogent Communications

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The portfolio of stocks I started building on September 8, at a one stock per week pace for the next year, is named Vista. I will select its fourteenth stock this weekend. Vista is the sixth portfolio I've built (at a one dividend dog per-week pace) since 2014. Six portfolios = VI for Vista!

Vista is planned to Look Ahead for Outstanding, Proven, Dividend Winners. (Like Aristocrats)

Today I'll review the first of five communication services sector stock candidates vying to be that fifteenth selection in Vista.

My subject today is a mid-cap telecom services company named Cogent Communications Holdings Inc. Its trading ticker symbol is CCOI. This is my only report on Cogent Communications for Vista or any of my six Dog of the Week portfolios.

Cogent carries over one-fifth of the world's Internet traffic over its network and is an Internet service provider for businesses. Cogent's corporate customers are in high-rise office buildings, and the firm provides them with two types of connections: dedicated Internet access, which connects them to the Internet, and virtual private networking, which offers an internal network for employees in different locations. 

Cogent's corporate customers are exclusively in North America and account for two-thirds of the firm's revenue. Cogent's netcentric customers include Internet service providers and content providers, to which Cogent provides Internet transit. They hand traffic to Cogent in data centers and rely on Cogent to deliver it. About half of netcentric revenue is from outside the U.S.

It serves primarily small and medium-sized businesses, communications service providers, and other bandwidth-intensive organizations. 

Cogent Communications Holdings, Inc. was founded in 1999 and is headquartered in Washington, the District of Columbia.

I use three key data points to gauge dividend equities or funds like Cogent Communications Holdings Inc:

(1) Price

(2) Dividends

(3) Returns

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

CCOI Price

Cogent's price per share closed at $58.42 yesterday. A year ago its price was $61.72. Price is down $3.30 or nearly 5.3% on the year.

If Cogent''s stock trades in the range of $50 to $70 this next year, its recent $58.42 price might rise by $3.58. to reach $62.00 by December 14, 2021. 

CCOI Dividends

Cogent's most recently declared quarterly dividend was $0.73 paid December 4th. Dividends are estimated to total $2.92 per share annually and yield 5.00% at Friday's $58.42 closing price.

CCOI Gains?

Adding the $2.92 annual anticipated dividend to my $3.58 optimistic estimate of Cogent's price upside shows a $6.50 potential gross gain, per share, to be reduced by any costs to trade the shares.  

Put little under $1,000.00 today in Cogent Communications Holdings Inc at $58.42 and we would buy 17 shares CCOI stock.

A $10 broker fee (if any) paid half at purchase and half at sale could cost us about $0.59 per share.

Subtract that maybe $0.59 brokerage cost from my estimated  $6.50 gross gain per share results in a net gain of $5.91 X 17 shares = $100.47 or a 10.05% net gain on a $993.14 investment.

So it goes that Cogent Communications Holdings Inc shows a possible 10% net gain including a 5.00% dividend yield. It could be more, it could be less. 

All of the estimates above are speculation based on the past history of Cogent Communications Holdings Inc. Only time and money invested in this stock will determine its worth.

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 solicitation, ...

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