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Franchise Group Inc is known by the ticker symbol FRG and is a member of the consumer cyclical business sector as a small-cap personal services enterprise. This is my first ever report on Franchise Group Inc for this Vista or any of my other five portfolios.

Franchise Group, Inc. operates as a retailer, franchisor operator, and acquirer of franchised and franchisable businesses. 

It operates through 4 segments: Liberty Tax, Buddy's, Sears Outlet, and Vitamin Shoppe. The company provides tax preparation services in the United States and Canada; and franchises and operates rent-to-own stores that lease durable goods, such as electronics, residential furniture, appliances, and household accessories to customers.

 It also operates as a retailer primarily focused on providing customers with in-store and online access to purchase new, one-of-a-kind, out-of-box, discontinued, obsolete, used, reconditioned, overstocked, and scratched and dented products in various merchandise categories, including home appliances, mattresses, furniture, and lawn and garden equipment, at prices that are lower than list prices; and specialty retailer of vitamins, minerals, herbs, specialty supplements, sports nutrition, and other health and wellness products. 

The company also operates pet specialty stores. 

The company was formerly known as Liberty Tax, Inc., and changed its name to Franchise Group, Inc. in September 2019. 

Franchise Group, Inc. was incorporated in 2010 and is based in Virginia Beach, Virginia.

Three key data points gauge dividend equities or funds like Franchise Group Inc:

(1) Price

(2) Dividends

(3) Returns

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

FRG Price

Franchise Group's price per share was $36.00 as of Friday's market close. One year ago its price was $20.76. So FRG price has gained over 73% in the past year. 

If FRG's stock trades in the range of $18 to $48.00 this next year, its recent $36.00 price might rise by $5.50 to reach $41.50 by July 6, 2022. My estimate is  $6.17 lower than the median of the annual price gains estimated by six analysts tracking NC for brokerage houses.

FRG Dividends

Franchise Group's most recent quarterly dividend payout of $0.375 is payable July 15, 2021, and equates to $1.50 annually to yield 4.17% annually based on Friday's $36.00 closing price. FRG has paid increasing annual dividends for 3 years.

FRG Returns

Adding the $1.50 annual FRG forward-looking dividend to my $5.50 price upside estimate shows a $7.00 potential gross gain, per share, to be reduced by any costs to trade Franchise Group Inc shares.  

At yesterday's $36.00 price per share, a little over $1000 would buy 28 shares.

A $10 broker fee (if charged) would be paid half at purchase and half at a sale and might cost us $0.36 per share.

Subtract that maybe $0.36 brokerage cost from my estimated $7.00 gross gain per share results in a net gain of $6.64 X 28 shares = $185.92 for an 18.5% net gain on a $1,008.00 investment.

So it is that Franchise Group Inc shows a possible 18.5% net gain including a 4.17% forward estimated dividend yield. 

Over the next year at this time, a $1000 investment in FRG would generate $41.70 in cash dividends. And a single share bought at yesterday's closing price was $36.00! Thus, FRG's share price is $5.70 less than the dividend income from $1K invested. So, according to the dividend dogcatcher ideal, this is the prime time to pick up FRG because the dividend from $1k invested exceeds the single share price. Consider yourself alerted.

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