Daily Stock Analysis: Comcast

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Source: Unsplash 

Comcast Corp has the ticker symbol CMCSA and is a member of the Communication Services sector as an entertainment company. This is my first report on Comcast for my Vista Portfolio. 

Comcast is made up of three parts. The core cable business owns networks capable of providing television, Internet access, and phone services to roughly 59 million U.S. homes and businesses, or nearly half of the country. 

About half the homes in this territory subscribe to at least one Comcast service. Comcast acquired NBCUniversal from General Electric in 2011. 

NBCU owns several cable networks, including CNBC, MSNBC, and USA, the NBC broadcast network, several local NBC affiliates, Universal Studios, and several theme parks. 

Sky, acquired in 2018, is the dominant television provider in the U.K. and has invested heavily in exclusive and proprietary content to build this position. 

The firm is also the largest pay-television provider in Italy and has a presence in Germany and Austria.

Comcast Corporation was founded in 1963 and is headquartered in Philadelphia, Pennsylvania.

Three key data points gauge dividend equities or funds like Comcast Corp:

(1) Price

(2) Dividends

(3) Returns

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

CMCSA Price

Comcast Corp's price per share closed at $56.31 yesterday. One year ago its price was $33.57. Price per share has increased nearly 68% from the midst of the Covid market slump. 

Should Comcast Corp stock trade in the range of $32 to $62 this year, its recent $56.31 price might rise by $3.69 to reach $60.00 by March 25, 2022. My estimate is slightly less than that of thirty-three analysts tracking CMCSA.

CMCSA Dividends

Comcast Corp's most recently declared quarterly dividend was $0.25, payable April 28th. Dividends are estimated to total $1.00 per share annually and yield 1.78% at yesterday's $56.31 closing price. Comcast has paid annually increasing dividends for fourteen years.

CMCSA Returns

Adding the $1.00 annual CMCSA anticipated dividend to my $3.69 price upside estimate shows a $4.69 potential gross gain, per share, to be reduced by any costs to trade the shares.  

Put little over $1,000.00 today in Comcast Corp at $56.31 per share and we'd buy 18 shares of CMCSA stock.

A $10 broker fee (if charged) would be paid half at purchase and half at a sale and might cost us about $0.56 per share.

Subtract that maybe $0.56 brokerage cost from my estimated $4.69 gross gain per share results in a net gain of $4.13 X 18 shares = $73.34 for a 7.3% net gain on a $1,013.58 investment.

Comcast Corp shows a possible 7.3% net gain including a 1.78% dividend yield. 

Over the next year at this time, a $1000 investment in CMCSA could generate $17.80 in cash dividends. And a single share bought at yesterday's closing price was about $56! So, if CMCSA is your kind of communication services investment, their price is over three times the annual dividend income from $1,000 invested. This suggests that you wait for the CMCSA price to drop to about $30 before adding these shares to your portfolio.

All of the estimates above are speculation based on the past history of Comcast Corp. 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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William K. 3 years ago Member's comment

Comcast is the only cable company that I am aware of that had to change their name because of their bad reputation.